Great Bear intersects high-grade gold in Red Lake district

Great Bear Resources (TSXV: GBR; US-OTC: GTBDF) has reported two high-grade drill holes from its Dixie gold project in Ontario’s Red Lake district.

The first reported drill hole intersected 26.9 grams gold per tonne over 16.4 metres from 120 metres depth including separate subintervals of 51.4 grams gold per tonne over 5.1 metres and 112.6 grams gold per tonne over 1.0 metre. The second reported drill hole drilled 15 metres vertically below the first one and intersected 44.5 grams gold per tonne over 7.0 metres including 2.0 metres of 143.2 grams gold per tonne.

Great Bear describes the Dixie project as a typical Archean mesothermal gold vein system that shares the same geological and metallogenic characteristics as the nearby Red Lake, Madsen and Rahill-Bonanza mines. The company bought the project from Newmont Mining (NYSE: NEM) in July 2017. The following September, Great Bear purchased an additional 26 mineral claims, bringing the project’s total area to 130 sq. km. The same month, Great Bear reported results from its eight hole, first phase drilling program at the project, highlighted by an intersection of 10.4 metres of 16.9 grams gold per tonne including 1.1 metres of 130 grams gold per tonne.

After reporting solid results from the first 3,000 metres of Dixie’s 2018 drill campaign in April, the company raised an additional $2.1 million and expanded the program to 10,000 metres.

CEO Chris Taylor said the two holes reported on Aug. 22 were drilled to test the extent of gold mineralization at Dixie’s Hinge zone, where the identified gold structure folds back on itself. In total, the Hinge zone has been intersected with eight drill holes over 70 vertical metres, all of which contain high-grade gold. Much of the remaining 5,000 metres and 20 to 25 drill holes of Great Bear’s fully funded 2018 drill campaign at Dixie will focus on the Hinge zone, which remains open in all directions.

Shares of Great Bear are currently valued at $1.20 per share within a 52-week range of 26¢ and $1.20. The company has a $30 million market capitalization.