As it now focuses efforts at Dixie, the mining group also revealed it had entered a binding letter of intent (LOI) with GoldON Resources Ltd (CVE:GLD), where GoldON has the option to earn an initial 60% interest, and a subsequent 100% interest in its West Madsen property, also in Ontario.
"While it's hard to compare almost any mineralization to the exceptional gold at the Hinge Zone, the Dixie Limb displays impressive silica-sulphide replacement with gold that predictably occurs in over 100 drill holes targeting the same geological contact across a large area," said Chris Taylor, president and CEO at Great Bear.
Dixie Limb is the original gold discovery at Dixie made by Teck Resources Ltd and lies around 200 meters to the north of Great Bear's 2018 high-grade gold discovery at the Hinge Zone (DHZ).
Great Bear today announced the discovery of a new gold control within its Dixie Limb Zone (DL) target, which enhances it as a significant potential host of high-grade gold.
"We now observe that the same late gold event that has led to high-grade mineralization in the Hinge Zone also positively affects the Dixie Limb. We look forward to further defining high-grade steeply-plunging gold zones within this target, and will drill to determine how many of these "upgraded" gold zones are present within the DL," said Taylor.
New drill results at DL include 17.55 g/t (grams per ton) gold over 2.55 meters within a broader interval of 9.15 g/t gold over 5.30 meters, and 24.21 g/t gold over 1.30 meters within a broader interval of 5.05 g/t gold over 15.85 meters.
The DL has been defined along a 600-metre strike length where all of more than 100 drill holes have encountered gold mineralization.
Considerable depth potential
The target also has considerable depth potential. The deepest drill hole intersects the zone at around 450 meters, and the zone remains open to extension in all directions.
Meanwhile, in order to earn an initial 60% at the property, GoldON must do various things, including pay $100,000 on or before the first anniversary of the definitive agreement and pay cash to Great Bear of $50,000 within ten days of signing a definitive agreement.
Great Bear will retain a 2.5% NSR (net smelter return) royalty after GoldON completes the initial 60% earn-in.
GoldON will have the right to buy back 1% of the royalty for $500,000 at any time prior to a production decision being made on all or part of the property.
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