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Great Bear extends LP gold fault zone on both sides of its current drill grid; Research Capital reiterates rating

Last updated: 11:24 25 Aug 2021 EDT, First published: 08:50 25 Aug 2021 EDT

Great Bear Resources - Great Bear extends LP gold fault zone on both sides of its current drill grid
During the drill, high-grade gold controls were identified along the LP Fault

Great Bear Resources (TSX-V:GBR) Ltd has released results from its ongoing, fully-funded exploration program at its flagship Dixie Project in the Red Lake district of Ontario.

Part of the exploration targeted previously underexplored northwestern and southeastern areas of the 4.2-kilometer Phase I drill grid.

According to Great Bear, the results expand and characterize the zone outboard from the Central LP Fault, which had seen the highest density Phase I drilling prior to today’s release.

READ: Great Bear Resources gets greenlight from Ministry to start phase II drill at Dixie project 

During the drill, high-grade gold controls were identified along the LP Fault.

“Drilling has confirmed these controls in several areas, which will facilitate targeting of high-grade gold during Phase II drilling below the current 450-meter drill depth, and elsewhere along strike,” said the company.

Additionally, steeply-plunging high-grade gold mineralization has been successfully targeted in the northwestern "Discovery" and southeastern "Viggo" areas of the LP Fault.

The recent results have increased the number of high-grade gold domains being modeled at the LP Fault from 17 to 23. This includes seven high-grade gold domains which are being modeled in the northwestern "Discovery" area.

In the Discovery zone, 26-drill holes were completed in the original LP Fault "Discovery" area, located along the most northwesterly 700 meters of the 4.2-kilometre-long Phase I drill grid. 

Highlights include:

  • Drill hole BR-365 extended gold mineralization approximately 100 meters deeper than past drilling on its section, assaying 15.04 grams per tonne (g/t) gold over 4.00 meters from 545.00 to 549.00 meters downhole, within a broader envelope of 3.13 g/t gold over 29.50 meters from 523.50 to 553.00 meters downhole;
  • Drill hole BR-394 assayed 150.00 g/t gold over 0.80 meters from 331.60 to 332.40 meters downhole, within a broader interval of 28.18 g/t gold over 4.80 meters from 331.60 to 336.40 meters downhole. The total mineralized interval was 3.83 g/t gold over 43.10 meters from 311.50 to 354.60 meters downhole.

"The confirmation of predictable high-grade gold controls within the LP Fault has clear, positive implications for our ability to target and model higher-grade mineralization, especially at depth,” Chris Taylor, president and CEO of Great Bear, said in a statement.

Taylor went on to say: “However, the confirmation of continuous mineralization at shallow depths in the "Gap" area is arguably the more significant development as we progress towards maiden mineral resource estimate publication by early next year. While clearly not the most strongly mineralized segment of the LP Fault, the "Gap" area contains mineralized intervals with similar grades and widths to those that have been incorporated into mine plans within other Canadian bulk tonnage gold deposits. These new results confirm the strongly mineralized Central and Discovery areas are connected as a continuously mineralized gold zone with clear bulk tonnage potential over three kilometers of strike length."

Research Capital reiterates ‘SPECULATIVE BUY’ rating

Following the release of the positive drill results and zone expansion news, analysts at Research Capital issued an updated note on the company, reiterating a SPECULATIVE BUY rating and target price of $36.

“The share price of Great Bear has been range-bound between $13/sh and $15/sh since early summer and seems to imply that the blue-sky discovery phase is over,” the analysts wrote. “While that may be somewhat the case, we continue to believe the market is discounting a much smaller resource than we believe is present and we reiterate our SPECULATIVE BUY and $36/sh target price.”

Shares of Great Bear were trading for C$13.30 at 11:22 am EST.

 - Updates with Research Capital note -

Contact the writer at georgia@proactiveinvestors.com

Follow her on Twitter @MissInformd

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