Great Bear: Canaccord Model Is Based On “Initial Applied Resource Of 4 Million Gold Ounces”
Yesterday, Great Bear Resources (TSXV: GBR) reported results from its ongoing exploration program at their flagship Dixie Project. A number of significant results were released, including:
- BR-169 – 5.56 g/t gold over 38.40 metres, including 11.57 g/t gold over 10.55 metres.
- BR-159 – 5.14 g/t gold over 32.75 metres, including 65.34 g/t gold over 1.65 metres.
- BR-174 – 3.39 g/t gold over 40.10 metres, including 20.63 g/t gold over 5.15 metres.
- BR-176 – 21.93 g/t gold over 5.50 metres, including 187.00 g/t gold over 0.60 metres.
- BR-211 – 6.46 g/t gold over 8.85 metres, as well as over 189 metres of >1 g/t gold in aggregate within the hole
- BR-212 – 4.69 g/t gold over 101.50 metres, including 41.25 g/t gold over 5.25 metres
- BR-194 – 5.42 g/t gold over 16.25 metres, including 31.90 g/t gold over 0.50 metres
Great Bear Resources currently has six analysts covering the company with a weighted 12-month price target of C$26.80. This is up from the average at the start of October, which was C$21.58. Two analysts have strong buys. Three analysts have buy ratings, and only one analyst has a hold rating.
Canaccord’s analyst Kevin MacKenzie has a C$23.50 12-month price target and a speculative buy rating on the company, saying, “our integrated valuation of the Dixie project is centered on a modeled 15,000tpd operation with an initial applied resource/exploration target of 4.0Moz (2.5Moz OP & 1.5Moz UG).”
MacKenzie says that these results serve two essential points. The first one is to, “underscore the size and scale of the Dixie mineralized system,” and the second being, “provide support for the plunge extension of the Hinge (+/-Limb) Zone(s).” He notes that both the Hinge and Limb zones host the same styles of mineralization.
Finally, MacKenzie says that their current forecasts include some broad plunge extensions and regional exploration. The upside can come from positive backfill infill results and says that the next potential catalyst would be the discovery-focused drill results and maiden resource estimate, which is expected to be released late into 2021.
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
