Great Bear Resources (the “Company” or “Great Bear”, TSXV:GBR) today announced the start of exploration work and diamond drilling in the Red Lake Gold District of Ontario. Great Bear is purchasing a 67% interest in the Dixie Lake project, a from-surface gold system that includes high grade gold intercepts open along strike and at depth. Newmont Mining Corp. (NYSE: NEM; “Newmont”) has a 33% participating interest in the Dixie Lake project.
Key features of the Dixie Lake Project are:
- -New detailed 3D geological modelling completed by Great Bear suggests that gold mineralization occurs along a continuous 1.7 kilometres of strike length with intercepts from surface to over 400 metres vertical depth, and remains open at depth and along strike.
- -High grade gold intercepts in historic drilling, including 7.54 g/t over 12.34 metres, 163.75 g/t over 0.47 metres and 32.65 g/t over 2.0 metres.
- -Comparable drill-indicated widths and gold mineralization grades to other Red Lake gold projects such as the Rahill-Bonanza Project of Premier Gold Mines Ltd. (TSE: PG) and Red Lake Gold Mines Ltd., an affiliate of Goldcorp (TSE: G)
- -Dixie Lake project consists of 49 mining claims, located 24 kilometres south of Red Lake, Ontario
- -Infrastructure advantages include all season road access and power lines which cross the property
- -No outstanding royalties
“The Red Lake district is famous for hosting vertically extensive high grade gold mineralization, with Goldcorp’s (TSX: G) Red Lake mine yielding gold for more than 2,500 vertical metres, and generally increasing tenor with depth,” said Chris Taylor, Great Bear’s President and CEO. “Dixie Lake stands out as having high grade gold results near surface that continue to the deepest tested intercept of 420 vertical metres. With this Phase 1 drill program, Great Bear will test continuity and strength of gold mineralization from surface to 100 metres depth, across one kilometre of strike. Once we have better-defined the plunge of the gold zones, follow up drilling will define the size and grade potential of the Dixie Lake system as a whole.”
Table 1: Highlighted intercepts from historical drilling showing gold results at a range of drill indicated depths and widths. Drill holes are presented in order of increasing intercept depth to show apparent continuity from surface to over 500 metres. Drilling to-date is across 1.7 kilometres of strike length and zones remain open along strike and at depth.
Great Bear has verified historical drill results against original drill logs and assay certificates. Great Bear has not conducted any re-sampling of historical drill core.
Exploration Program Details
The 2017 field program will begin the week of April 17, with approximately 30 days on site during which historical drill core will be re-logged by Great Bear’s geologists. This will resolve geological differences between generations of work dating back to the 1980’s, and provide a coherent framework for the Company’s own drilling. Surveying of historical drill collars will also take place to facilitate digital modeling of the mineralized zones.
During May 2017, a 1000 metre drill program will test continuity and strength of gold mineralization across approximately one kilometre of strike, down to vertical depths of approximately 100 metres. This will allow more precise modeling of the plunge of mineralized zones near surface, in order to guide future drilling. Current results will be compared to historical results to validate and/or re-interpret past work.
The Phase 1 exploration program is expected to cost approximately $250,000. The Company is currently fully funded and will not require additional financing to execute this program.
The Company notes that in addition to the 77 drill holes that were completed between the late 1980’s and 2012 at the main gold zones (historically termed the 88-4, Main, North and South Zones), a number of additional gold zones have also been tested with 87 drill holes, and have yielded encouraging results including 12 holes with highly anomalous gold values > 100 ppb and one hole which intersected 1.5m of 5.45 g/t gold approximately 1 kilometre northeast of the main gold zones. These zones will be mapped and sampled during the Phase 1 program to allow prioritization for follow-up work.
Great Bear must pay $70,000 over the next two years to a private vendor to complete its purchase of the Dixie Lake project, which can be accelerated at any time at the Company’s discretion. Upon completion of the purchase, Great Bear will hold 67% of the property interest and all Net Smelter Royalties currently held by the vendor. Newmont Mining Corporation owns 33% of the property and must elect to contribute to on-going exploration expenditures in order to maintain that ownership percentage.
Mr. R. Bob Singh, P.Geo, Director and VP Exploration for Great Bear, is the Qualified Person as defined by National Instrument 43-101 responsible for the accuracy of technical information contained in this news release.
For further information please contact Mr. Chris Taylor, P.Geo, President and CEO at 604-646-8354, or Mr. Knox Henderson, Investor Relations, at 604-551-2360.
ON BEHALF OF THE BOARD
Chris Taylor, President and CEO
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This new release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements.
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