Great Bear Resources Ltd. [GBR-TSXV] on Wednesday January 16 announced more drill results from the Hinge Zone and South Limb Zone at its 100%-owned Dixie Lake Project in the Red Lake area of northwestern Ontario.
Highlights included a high-grade intersection (drill hole DHZ-014) that assayed 1,602.73 g/t gold over 0.70 metres (approximate true width) at a vertical depth of 150 metres.
Great Bear advanced on the news, rising 26.4% or 52 cents to $2.49 on volume of 680,400. The stock is trading in a 52-week range of $3.50 and 41 cents.
Great Bear has attracted interest from major players, including Bay Street gold bug Rob McEwen and his company McEwen Mining Inc. [MUX-TSX], after recently reporting a high-grade gold discovery in the Red Lake mining camp, which has already produced about 30 million ounces of gold.
Geologists often say that the best place to make new discoveries is in the vicinity of existing deposits.
Its properties are located about 28 km from Goldcorp.’s [G-TSX; GG-NYSE] Red Lake Gold Mine, which has been in production since the late 1940s. That mine is expected to produce 235,000 ounces of gold this year at an all-in-sustaining cost of $1,000 an ounce.
The company is currently engaged in a 30,000-metre, approximately 150-drill hole program at the Dixie Lake property, which is expected to continue through 2018 and 2019. Expanded exploration work will be informed by ongoing results, and may include additional drilling, geophysical surveys, trenching, and downhole survey methods.
The company said a second drill rig will be added to the project this year to accelerate the work.
“Our Hinge and South Limb Zone are part of a continuous gold vein system which is interpreted to extend along 300 metres in strike length and has been drill tested to a depth of 212 metres,” said Great Bear CEO Chris Taylor.
“The zone remains open in all directions and occurs immediately south of a regional east-west trending D2 fold hinge and associated structures which extends for approximately 10 km into undrilled areas,” he said.
Hinge Zone hole DHZ-014 intersected a 10.1-metre wide vein zone (approximate true width). Visible gold was observed at both its upper and lower contacts. The vein zone is part of a of the larger Hinge/South Limb vein system, which parallels and ultramafic unit and deep seated fault at the heart of the Dixie gold system.
The vein system has been intersected in 28 holes across 300 metres of strike length to date and is open along strike and at depth. DHZ-014 was drilled to test Great Bear’s 3D vein model, which accurately predicted that veining would be present within 15 metres of the actual intercept.
Meanwhile, Great Bear is also earning a 100% royalty-free interest in its West Madsen properties, which total 3,860 hectares and are contiguous with Pure Gold Mining Inc.’s [PGM-TSXV] Madsen property. All of Great Bear’s projects are accessible year-round via existing roads.