Great Bear Resources (TSXV:GBR) is a Canadian exploration company focused on advancing precious metals projects in Ontario’s Red Lake District, one of the world’s most prolific gold producing regions. An excellent network of access roads allows for exploration work in the winter months at both the Dixie Lake project and the recently acquired West Madsen project.
The company has a purchase agreement with Newmont Mining for a 67 percent interest in the Dixie Lake property, which hosts geological structures and high grade mineralization similar to that of the major gold mines and advanced projects in the Red Lake region. Great Bear nearly doubled its position in the Red Lake district with its 100-percent acquisition of the West Madsen gold project, an on-strike extension of Pure Gold Mining’s high-grade Madsen project.
Investing News Network: The Red Lake District has been call the “Gold Capital of Canada”. What makes this region a world-class district?
Chris Taylor: The Red Lake District has produced over 30 million ounces of gold in its production life cycle and I believe 28 mines have been producers in the region. The area is very well-endowed with gold.
INN: Please tell us about Great Bear’s properties in Red Lake.
CT: Great Bear’s primary asset in Red Lake is the Dixie Lake project. The project has had about 150 drill holes completed, which have encountered high-grade, near-surface gold mineralization. Some of the intervals intersected include about .5 metre of about 160 grams per tonne gold. That is probably the highest number that I have seem come out of an individual interval, and there are many intervals that are in the 2 to 3 metres range of 15 to 17 grams per tonne gold. Some of the other intercepts would be more typical of Red Lake mineralization, including 2 to 3 metres of 4 to 5 grams per tonne gold.
INN: How does the geology compare with other deposits in the region?
CT: There are many similarities between the ore controlling geology for other deposits in Red Lake and the geology which we see at our Dixie Lake and West Madsen projects. At Dixie Lake, what we are looking at is something similar to the Rahill-Bonanza deposit, which is jointly owned by Premier Gold and Goldcorp. It is concentrated gold mineralization at the hinge of a fold. We see the same pattern at Dixie Lake and we notice the same concentration in gold values around our fold hinge. For instance, our fold hinge is where we have drilled intervals of .5 metre of 160 grams per tonne gold or 12 metres of 7 grams per tonne gold. Those are the kind of intervals we are targeting at Dixie Lake, and those are the kind which yielded a market reaction such as in Premier’s case following the drilling completed at Rahill-Bonanza.
Our other project is the West Madsen, which consists of two claim blocks located immediately adjacent to Pure Gold’s Madsen Mine. A 70,000-metre drill program is underway at that project and Pure Gold has been hitting excellent results. We have the on-strike extension of their primary mineralization control structures. The West Madsen is an earlier stage project that was recently opened up to exploration via newly constructed logging roads. We are very much looking forward to getting active at West Madsen this summer.
INN: Please tell us about the excellent team behind GBR.
CT: My background is in production mining with Imperial Metals, my alma mater, and as a structural geologist which comes in handy as we work in Red Lake. The team member I would really like to highlight is Bob Singh. He is our vice president of exploration and is a real Red Lake alumnus. Bob has been involved in tens of thousands of metres of gold drilling in the Red Lake District for all the major players. He is spearheading the design and implementation of our exploration program. If his past successes are any indication, Great Bear will do really well with that type of expertise on board.
INN: What catalysts can shareholders look forward to this year as you advance the project?
CT: The company has appropriately enough been in a hibernation mode during the bear market, but now we are about to wake up. We are beginning a field program in Red Lake that will entail re-logging the drill holes that have already been completed on the project so that we can produce an updated three-dimensional understanding of the geology. We can then commence with a 1,000-metre drill program that will target high-grade, near-surface gold intercepts based on the new 3D modeling of the mineralization geometry at the Dixie Lake project.
INN: What can you tell us about GBR’s share structure?
CT: Great Bear has an issued and outstanding share base of 12 million shares.
INN: What about your assets in BC’s Golden Triangle?
CT: We took into account the money we have on hand—approximately $1 million— and we analyzed what we would be able to accomplish with an initial starter program of about $250,000. We looked at what $250,000 in the Stewart area of BC would net versus what that same amout in the Red Lake area would net. Red Lake, in our mind given the current market cycle and appreciation for gold, is definitely where we can get the most bang for our buck. Our Stewart area projects are long-term strategic assets for the company.
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