May 20, 2021
Great Bear Royalties Corp. (TSXV:GBRR, Not Rated, David A. Talbot) was positively impacted by Great Bear Resources’ (TSXV:GBR, Not Rated) news release from its 100%-owned flagship Dixie project in Red Lake, Ontario. Great Bear Royalties has one asset – 2% NSR royalty on Great Bear’s Dixie project, where the goal of the royalty is to ensure investors have exposure to a tier-one gold discovery in a tier-one jurisdiction. The Dixie project is a large, district-scale, high-grade near-surface gold discovery currently undergoing a C$45M, 175,000m drill program. We do not currently value or rate the stock but assume potential of over 10M oz Au from the LP Fault and ~2M oz more from the Dixie Limb and Hinge zones. We also see potential for over 4M oz Au down to 400m within the core of the 4.2km long zone. Analyst consensus suggests the potential for a ~500koz/year production, highlighting the quality of this tier-one asset. Today, Great Bear Resources provided its first detailed high-grade long section as it prepares for its initial resource estimate, likely due late 2021 or early 2022. The LP Fault zone hosts 17 different high-grade gold domains, while this long section of just a near surface portion of one of these domains hosts 28 drill holes along 500m strike. We note that the LP Fault zone is showing excellent continuity and consistency of both high-grade and bulk tonnage gold mineralization. Furthermore, Great Bear announced results from another 17 drill holes, putting it over 300 LP Fault drill holes to date. These new holes intersect the LP Fault zone from ~20m to 500m vertical depth along a 2.2km portion of the trend, successfully extending mineralization towards surface and within 75-100m gaps within the zone. Assays include 1) 22.79 g/t Au over 4.8m within 3.32 g/t over 43.8m at hole BR-298, and 2) 13.27 g/t over 2.35m and 4.12 g/t over 10.35m within 2.3 g/t over 39.3m at hole BR-299. New bulk-tonnage intercepts include 3.07 g/t over 35.6m and 1.11 g/t over 91.6m, while hole BR-276 intersected both high-grade and bulk tonnage style mineralization with 25.57 g/t over 2.5m and 4.10 g/t over 23.85m including 68.4 g/t over 0.95m. We expect ongoing drill results to continue to expand the footprint of the zone, shrink gaps within untested portions of the zone, and simply improve confidence in the pending resource estimate. GBRR remains a name that we suggest investors keep an eye on as exploration results are expected to be released throughout H2/21, and this could have direct impact on the markets confidence in what is emerging as one of Canada’s great gold discoveries. Read more