The Red Lake Mining District in northwestern Ontario is world renown for its prolific gold reserves. Home to the Red Lake Mine of Goldcorp (TSX:G)(NYSE:GG), the district has produced more than 23 million ounces of gold from ores of extremely high grades relative to the rest of the world.
Great Bear Resources (TSX-V:GBR)(OTCPK:GTBDF) last November doubled its property position to about 4,400 hectares in the district by adding the 2,725-hectare Madsen gold project to its portfolio along with its Dixie Lake project to its east. Since then, though, the company has added substantially to the Dixie Lake land position, taking it to 7,106 hectares, giving Great Lake nearly 10,000 hectares in the Red Lake District now.
Shares of Great Bear are on the move Thursday following the Vancouver-based explorer releasing results from the first five holes as part of an eight-hole drill program recently completed at Dixie Lake. The company is currently in the midst of acquiring a 100% interest in the property for $150,000, including buying the 33% stake held by industry Goliath Newmont (NYSE:NEM) for $80,000 over four years.
The property has optimal coordinates, positioned with road access and on-site power lines in a mining-friendly area, prime infrastructure cornerstones to develop a project.
Today's results were highlighted by several strong intercepts, including a 10.4 metres grading 16.84 grams per tonne gold, including 1.05 metres of 130.10 g/t gold, representing the highest grade intercept to date at Dixie Lake. Other impressive cuts included 6.3 metres averaging 5.56 g/t gold and 4.60 metres grading 4.07 g/t gold.
Thanks to a private placement completed in July, Great Bear is funded for its planned fall-winter exploration program that will include mapping, geophysical studies and more drilling.
Shares of GBR have been cruising higher in 2017 after hitting a 12.5-cent low in November 2016. With today's news, shares printed a new all-time high at 50 cents and are still holding at 47 cents for a gain of 23.4% with a couple of hours left in the trading session.
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