A new, high-grade gold discovery in the Red Lake area of Ontario
A famous gold mining district in a favorable jurisdiction
Gold is shallow and beside a highway, good infrastructure
Who are Great Bear Resources?
Four years ago, the firm struck a deal to acquire the Dixie mining claims in Ontario’s prolific Red Lake gold district and where Great Bear is now earning a 100% interest in 49 mining claims. In 2016, it bought the West Madsen gold project, an on-strike extension of Pure Gold’s high-grade Madsen project. Great Bear now has agreement in place to control 13,000 hectares of prospective ground.
Last year the firm completed its purchase of 100% royalty-free interest in the Dixie gold project, which lies around 15 minutes' drive along Highway 105 from downtown Red Lake, Ontario. The famous and prolific Red Lake mining district in Canada has produced over 30 million ounces of gold.
It benefits from major active mining operations including the Red Lake Gold Mine of Goldcorp Inc (NYSE:GG), plus modern infrastructure and a skilled workforce.
Great Bear is also earning a 100% royalty-free interest in the West Madsen, Pakwash, Dedee and Sobel properties, which it says cover regionally significant gold-controlling structures and prospective geology.
How's it doing?
Great Bear has really been steaming ahead with exploration at its ground since making a new gold discovery, announced last September.
The company named the discovery the South Limb zone (SLZ) and said it had uncovered the best gold grade to date at the property at 1.75 m (meters) with a whopping 101.05 g/t (grams per ton) gold. Significantly, that hole included another intercept of 346.79 g/t gold over 0.5 meters. The firm said the new target was large and has the potential for several kilometres of strike length.
The company has also now discovered high grade gold at the Hinge zone too. In January this year, the group said: "Our Hinge and South Limb Zone are part of a continuous gold vein system which is interpreted to extend along 300 meters in strike length and has been drill tested to a depth of 212 meters."
Drilling at Dixie Lake is focused on defining and expanding the Hinge and Dixie Limb zones previously identified within the historical mining area of Red Lake and on April 1, this year, the firm said it had doubled drilling to 60,000 meters and added a third rig.
In July, the firm revealed it had raised C$10.9 million for Dixie exploration in an oversubscribed placing due to investor demand. The same month it expanded the high-grade gold discovery at the Hinge Zone, where a hole had previously hit 12.3 grams per ton gold over 14 metres, including 30.9 g/t gold over 4.6 metres, 194.2 g/t gold over 2 metres, and 759.4 g/t gold over 0.5 metres.
The firm said it had hit more high-grade gold mineralization 440 metres from surface and 150 metres from the nearest previously reported intercept, suggesting an extensive network of gold veins.
And on July 24, Great Bear said ongoing drilling has confirmed high grade structural gold at the Dixie Limb zone at the property, with a highlight intercept of 0.60 meters at a whopping 73.33 grams per ton (g/t) of gold.
Last week, a new discovery at Dixie was reported called the Yuma zone, which included assays of 5.5 meters of 4.1 g/t gold beginning at 193.5 meters downhole, including 2 meters of 10.6 g/t gold and 0.5 meters of 36.9 g/t gold.
What the CEO said:
President and CEO Chris Taylor told Proactive at the time of news of its expansion of the Hinge Zone discovery release on July 10.
"We have gold mineralization from about zero meters depth, roughly there, to about 440 meters down plunge om this thing, so it's really lining up to look like a typical, long, vertically continuous type of Red Lake gold system and that's exactly what we were looking for when we started exploring in that area."