Research Capital reiterates Great Bear Resources as ‘Speculative Buy’ with $36 price target after Dixie project expansion

Research Capital Corporation reiterated Great Bear Resources Ltd (CVE:GBR) (OTCMKTS:GTBDF) as a ‘Speculative Buy’ with a $36 a share price target after the gold explorer added a sixth drill rig at its Dixie project in Ontario.

Great Bear Resources said the sixth rig is being added to accelerate the 2021 drill program at the site and will continue to infill as well as expand on the three main gold zones, including the Hinge, Dixie Limb and LP Fault zones. 

The company added that its primary focus remains infill and expansion drilling of the LP Fault zone at 25-75 meter centers. 

READ: Great Bear Resources adds sixth drill to Dixie project

However, it said there remain large undrilled gaps of 100-400 meters (m) between existing drill holes in several areas of the LP Fault, and within the other Dixie Project gold zones where step-out and step-down drilling have already successfully expanded the zones – all of which remain open to extension.

“This comes as no surprise as the company indicated that it will be increasing the number of drill rigs to carry out its aggressive exploration program,” wrote Research Capital, formerly called Mackie Research. “We are pleased to see Great Bear continuing to focus on expanding its drill program, especially in areas that we have not considered in our 9.6 million ounce mineralized inventory estimate.”

The analyst firm added: “For the LP Fault zone, we have only assumed open-pittable material in our estimate – any material identified at depth with economic potential represents upside … At the Limb zone, we have assumed a depth of 500 m, assuming an all underground mineable deposit.”

Great Bear Resources’ stock currently trades around $15.60 a share in Canada and around $12.45 a share in New York. 

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Story by ProactiveInvestors