Great Bear's Dixie & Sobel
Properties are arguably the hottest exploration play in Canada right
now. Great Bear Resources DOES NOT have a resource calculation yet,
but what is shaping up for investors appears enormous; when a
first-pass resource does come forth look for significant related
intrinsic value share price appreciation to materialize.
- PureGold Mining Inc. (TSX-V:
PGM) (LSE: PUR) - A New Major Gold Producer,
PureGold's Red Lake Mine is
one of the world’s highest-grade gold mines anywhere on this planet
(higher than 95% of gold mines). The Company poured its first gold
dore bar from the mill on December 29, 2020.
- Straightup Resources
Inc. (CSE: ST) - Highly Prospective for
Straightup Resources' RLX & Belanger Properties
are proximal Great Bear Resources. Look for activity just off
Straightup Resources property line in the near-term; Great Bear Resources has identified target zones on its new Sobel
Property that is directly adjacent to Straightup Resources' RLX.
After Great Bear discovered a world-class 11+ km long high-grade gold system
on its Dixie property, Great Bear Resources geologists took their
improved understanding of the area geology and decided to acquire a
select few new claims that they believe to be most prospective for
major discovery. Straightup Resources acquired its claims prior to
Great Bear announcing it had selected this ground.
When Great Bear Resources gets around
to drilling targets on its Sobel property, then Straightup Resources
is apt to experience considerable attention due to the fact its RLX
Project is directly adjacent (nearly encircling). There is an excellent chance we will
see action soon; we note that
Great Bear stated in a recent press release regarding planned
activities for 2021 that "additional drills
may also be used at various times throughout the calendar year to
drill other regional targets at the Dixie Project, and/or at Great
Bear’s other Red Lake area properties."
Red Lake in Ontario,
Canada, is one of the more prolific gold mining districts in the
world with ~30 million oz gold having been produced from high-grade
mines since 1925, >80% of this gold was produced from Evolution
Mining's Red Lake Complex (formerly owned by Newmont). Today some of
the most exciting exploration projects are ongoing in the district.
on Pure Gold Mining -
Canada's Newest Gold Producer
On December 29, 2020
PureGold poured its first gold dore bar following the introduction
of ore to its new mill a couple weeks earlier (on budget and on
schedule). The optimization process of equipment and ramp-up process
is in full-swing and as the Company proves itself look for the share
price to respond upward accordingly. When fully dialled-in the
company expects to ultimately develop into one of the world’s most
profitable gold mines; looking to ultimately deliver an
operating margin over $1,350 an ounce -- generating more than $2.3
billion revenue in Phase One alone. The PureGold Mine has a
2.1-million-ounce Indicated Resource (7.2Mt at 8.9 g/t gold) and a
0.5-million-ounce Inferred Resource (1.9Mt at 7.7g/t gold). Mineral
resources are inclusive of Probable Mineral Reserves of 1 million
ounces of gold grading 9g/t (in 3.5 million tonnes).
Great Bear Continues to Build Ounces
on a World-Class 11+ km Long High-Grade Gold System on its Dixie
Great Bear Resources continues to encounter spectacular intersects
along its LP Fault on its Dixie Project. In the last two years,
there have been multiple high-grade gold discoveries on the Dixie
Property; the Dixie Limb, Hinge, Arrow, Bear-Rimini, Yuma, Auro, Yauro, Viggo
and Gap zones. The last six discovery areas are now
considered one zone that is hosted by the LP Fault deformation zone,
which overall is an 18km target that is continuously being explored
by the company.
3D VERIFY Model
In mid-December-2020 Great Bear released a new 3D 'VERIFY' Model of the Dixie Project
geology and gold mineralization.
The model (and how to use it) is explained in the
following video online:
The 3D VERIFY model is based on about 400 drill holes, the user can peel off
the geology in pre-set images and view gold distribution. The model
allows the different zones to be zoomed in on at any angle. The
model also has tabs that detail in-progress geological and
mineralization modeling, including detailed known and projected
The projected mineralization is derived from structural information (e.g. oriented drill core). News releases regarding large ~400 m &
~500 m step-outs (at depth) in the LP, Hinge, and Limb Zones affirm
the model is working; the model clearly presented the deep holes
that were directionally drilled. In short, there is an immense
amount of gold already found and even more high-grade gold to be
discovered with high confidence.
Figure 1 (above) Example image
of the current 3D geological and gold mineralization model at Dixie.
Dec 16, 2020 news release).
What is shaping up for
investors appears enormous, when a first-pass resource does come
forth look for significant intrinsic value related share price appreciation
to materialize. There are multi-km long lengths of continuous
high-grade gold at impressive widths close to surface. These zones
are also proven now to be continuing at depth. The market capitalization
of other miners with established resources comparable in size and
quality of what appears to be shaping up at Great Bear Resources
dictates that the share price of GBR trade multiples higher.
13 Million Ounces?
We are not suggesting a first-pass resource of this size, but
certainly heading toward that; Analyst David Talbot of Eight
Capital has attempted to quantify matters. The following is an
excerpt from his September 9, 2020 report:
We initiate coverage of
Great Bear Resources with a BUY rating and a C$30.00
share price target. Our target price is based on a
5% DCF model applied to a hypothetical open pit mine
plan for the LP Fault supported by our mineral inventory
estimate and costs from comparable projects.
We believe investors
should buy Great Bear now. While its flagship Dixie
exploration project has opened many eyes, it has yet to
become the household name that we anticipate. We don't
believe many realize the emerging critical mass of
Dixie, or how well it correlates to Red Lake and Hemlo,
two world class districts. And it comes down to whether
or not investors can already recognize that the shallow
LP Fault Zone could become one of Canada's largest gold
mines, despite the current lack of resource.
We see potential for ~13
MM oz of gold. Our mineral inventory estimates 11.0 MM
oz Au at LP Fault Zone, 1.2 MM oz at Dixie Limb Zone and
0.8 MM oz at Hinge Zone. This represents an EV of
<US$48/oz, about 40% below its peer group average. We
believe designing a hypothetical yet realistic mine plan
around our mineral inventory is the best way to procure
a DCF valuation.
Our 5% NPV forecast is
US$2,300 MM (after-tax) based on our hypothetical mine
plan and a 2024 start-up. We assume an initial 21ktpd
operation and a higher grade starter pit, before
expanding to 55ktpd. We assume initial Capex of US$735
MM, and production of 7 MM oz over nine years <US$800/oz
AISC. While we do discount NPV for stage of project and
ongoing exploration spending to come up with our C$30/sh
target, our NPV projection represents a 3.7x increase
from GBR's current market cap.
Dixie Project has all the
desired hallmarks for a growing gold development
project: large land package; great jurisdiction;
excellent access & infrastructure; multiple large, high
grade Au discoveries; world-class deposit analogues;
aggressive budget; experienced team and proven track
record having already turned every $1 raised into $30
market cap. We remind investors that Great Bear comes
from the same stable of companies, and shares management
with, Kaminak Gold that was sold to Goldcorp in 2016 for
$520 MM. This team is aligned with shareholders and
knows how to create value.
Great Bear’s plan to
repeat success of Dixie at Sobel, located directly adjacent
Straightup Resources RLX Project
Straightup Resources Inc. is a relatively new public company, trading under the
stock symbol ST on the Canadian Securities Exchange.
Straightup is compiling and reinterpreting historical data on RLX North, RLX South and Belanger Properties, Red Lake District,
Ontario which comprise its Red Lake district property package.
Collectively, the Properties form a contiguous land package of over
10,000 hectares partially surrounding Great Bear Resources Ltd.’s
Excitement runs high directly adjacent Straightup Resources' RLX
project as Great Bear Resources has announced the identification of
gold target zones on its Sobel Property; see related September
9, 2020 news from Great Bear Resources
here; on the Sobel property Great Bear has completed 399
samples, establishing a four square kilometre Spaciotemporal
Geochemical Hydrocarbon (“SGH”) survey similar to that used by Great
Bear to successfully identify gold mineralization at the LP Fault,
Dixie Limb and Hinge zones at the Dixie property.
On September 9, 2020 the President, CEO, and Director of Great Bear
Resources, Chris Taylor, gave a synopsis of what attracted them to
the Sobel property and how they identified targets; see 3:15 minute
(above) discussion of Sobel - Great Bear has identified a couple
of large anomalies (several hundred meters across each). These
anomalies are very similar to what was seen above the zones at the Dixie project.
These SGH sample surveys are a bit of a black box technique, it’s
basically measuring the metabolic by-products of bacteria and other
soil organisms that are eating the mineralization within the gold
zone, and it is those metabolic by-products that get analysed in the
lab (it is not a gas survey). This SGH survey is exactly what Great
Bear used at the Dixie Project to highlight where they would end up
finding ultimately the Hinge Zone and the LP fault Zone. Technically
the Hinge Zone was found first before they did the SGH surveys, but
when Great Bear did the SGH survey, it successfully identified the
areas where the gold mineralization was nearer the surface. SGH
surveys do not locate gold that is deep, thus it can give false
negatives. It is however a technique found to be effective, cheap to
implement, and is a good first-pass method of identifying zones
Figure 3. (above) Map of Red Lake District
showing area projects/players, Straightup Resources' RLX North, RLX
South, and Belanger Properties are depicted in red.
The fact Great Bear has chosen Sobel (which is almost entirely
encircled by Straightup) to explore, even before it has calculated a
resource on its Dixie Project, shows just how prospective it
believes this location to be.
The RLX PROJECT of Straightup Resources is large (~10,000 ha)
and offers the big elephant size gold discovery potential with D2
faults interpreted to run through, on-strike to the SE of the
district’s largest gold deposit (Red Lake Gold Mines – Evolution
Mining). The property is underexplored as it has overburden with
little bedrock outcropping, which has limited past exploration
efforts in favour of other areas in the Red Lake District.
Straightup Resources' technical team will be looking to target the
contact zones of the volcanic assemblages that host the gold. Past
operators on the RLX properties have shown the geological contact
between mafic/ultramafic vs. felsic intermediate rocks is present
-- a major geological contact similar to what provided a pathway for
gold laden hydrothermal fluids for success at Great Bear Resources
on its Dixie property.
The BELANGER PROJECT (~2,000
ha) is more advanced, has mineralization at surface, and it brings
opportunity for quick news flow with two immediate areas of
interest; 1) the Hemming Showings are found in a deformation
zone, tracking NE to SW near the middle of the property, that is
measured to be at least 100 m wide and possibly a lot wider. The
showing produced a selective grab sample which measured ~0.9 oz/t
gold. There are a number of gold and base metal showings along
that same line strike through the property. 2) The Williamson
Showings are where three historic trenches were exposed by past
operators; trench C has produced grab samples up to 25 g/t
gold, trench E which is 550 m to the NE of trench C has produced
selective grab samples of up to 60.44 g/t gold, selected
copper grab samples were also pulled from the trenches measuring
over 5% Cu. There are parallel deformation zones. Straightup Resources' technical team will be
looking at the underlying controls, the big picture,
how the gold and copper are distributed, and will
develop a predictive model. Already, from drill
holes performed by past operator Kings Bay, it is
suggesting some continuity to the copper and gold
mineralization; DDH 14 & 15 both intersected over 7
g/t gold over narrow intercepts within the broader
gold and copper mineralized envelope. See related
October 14, 2020 news release entitled "Straightup
Completes Preliminary Field Work on Belanger Gold
Property, Red Lake District, Ontario".
The following URLs have been identified for additional insight on Straightup Resources Inc.:
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