December 16, 2015 – Vancouver, BC, Canada. – Great Bear Resources (the “Company” or “Great Bear”, TSX-V: GBR) is pleased to announce the signing of a purchase agreement to acquire 67 percent ownership of the Dixie Lake gold project in the Red Lake Gold District of Ontario.
Key features of the Dixie Lake Project are:
- Participatory 33 percent interest from Newmont Mining Corp. (NYSE: NEM)
- No annual holding costs for next ten years
- Historic drill holes include near surface high grade gold mineralization of up to 163.75 g/t over 0.47 m
- Significant upside potential for gold endowment – Widespread under-reporting of historic gold grades through interval “capping”
- Located 24 km southwest of Red Lake, Ontario
- Infrastructure advantages include all season road access and power lines which cross the property
- Great Bear is acquiring all Net Smelter Royalties held by the property vendor
- Gold intercepted across approximately 1.7 km of strike and remains open along strike and at depth, showing significant size potential and a robust mineralized system
Of note, many drill intervals returning up to 17.77 g/t gold over 1.97m include “capped” high grade gold results where any assay over 26.6 g/t was reduced to that level when reported, and actual gold grades were not stored in the database. Where assayed, high grade gold intervals can exceed 100 g/t, and the Company believes these “capped” results may be adjusted higher through re-assay work or compilation work from original assay certificates.
“With its negligible holding costs, high grade drill results, embedded partnership with Newmont, and lack of overhanging royalties, the Dixie Lake project is a strong asset to add to Great Bear’s project portfolio,” said Chris Taylor, CEO of Great Bear, “The Dixie Lake project has similar host geology, gold controlling structures, and presence of high grade mineralization that also characterize the major gold mines and advanced projects in Red Lake. Numerous shallow high grade gold intercepts occur within a folded structural corridor where the fold hinge is not adequately drilled, and presents an obvious target for future drilling. The project has many similarities to the Rahill-Bonanza Project in Red Lake currently being drilled by Premier Gold Mines Ltd. (TSE: PG) and Goldcorp (TSE: G), where recent drilling has intersected high grade gold in folded sequences. The property is in good standing for at least 10 years, so our holding costs are minimal and all work will go directly towards advancing the project.”
Great Bear is currently compiling historical data and formulating plans for exploration work in 2016 to advance the project.
|Hole Number||From (m)||To (m)||Width (m)||Gold (g/t)|
Table 1: Significant intercepts from historical drilling. Note: a qualified person from Great Bear has not verified these assay results. Results were tabulated from data received from the property vendor.
Under the terms of the Agreement, Great Bear must issue 100,000 shares and pay a total of $130,000 to the vendor according to the following schedule:
- Year 1: pay $20,000 and issue 100,000 shares
- Year 2: pay $20,000
- Year 3: pay $30,000
- Year 4: pay $40,000
Upon completion of the agreement, GBR will hold 67% of the property and all Net Smelter Royalties currently held by the vendor. Newmont Mining Corporation owns 33% of the property and must elect to contribute to on-going exploration expenditures in order to maintain that ownership percentage. The property has enough assessment credit to keep the claims in good standing for approximately 10 years. The agreement is subject to Exchange approval.
Mr. R. Bob Singh, P.Geo, Director and VP Exploration for GBR, is the Qualified Person as defined by National Instrument 43-101 responsible for the accuracy of this news release.
For further information please contact Mr. Chris Taylor, P.Geo, President and CEO at 604-681-0037.
ON BEHALF OF THE BOARD
Chris Taylor, President and CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This new release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements.
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