Shares of Great Bear skyrocketed after the release of the news, closing up 19.7% at C$3.52 in Canadian trading.
The new discovery, called the Bear-Rimini zone, was found at Great Bear's wholly owned Dixie Project in the Red Lake District of Ontario and shows multiple shallow gold zones.
Numbers reported from one discovery drill hole at the Bear-Rimini zone include 12.33 grams per tonne (g/t) gold over 14 metres, including 30.90 g/t gold over 4.60 m, 194.21 g/t gold over 2 m, including 759.38 g/t gold over 0.50 m.
To the unitiated, those numbers are significant. The Bear-Rimini zone is located 2.5 kilometres northwest of the Hinge Zone, located at the firm's Dixie property, located in the prolific Red Lake district of Ontario.
This district has produced more than 30 million ounces of gold and is one of the premier mining districts in Canada.
The new discovery is hosted by a new exploration target: the LP Fault.
"After recognizing a significant hydrothermal alteration zone in our previous round of regional drilling, we tested and discovered, in our first hole, a new zone of shallow high-grade gold associated with silicification of host rocks related to a crustal-scale structure we call the LP Fault," said CEO Chris Taylor in a statement.
Bear-Remini zone a 'significant new gold discovery'
"We interpret the LP fault to transect the property for approximately 18 kilometres of strike length," Taylor continued. "The new Bear-Rimini Zone joins the Hinge Zone as a significant new gold discovery and will be an additional focus of drilling through the remainder of 2019."
According to the firm, the fault marks a contact between mafic and felsic/intermediate rocks and is associated with an 80 to 200 metre-wide quartz zone, associated with highly anomalous to high-grade gold.
The LP fault lies parallel to highway 105, which is the main access corridor to Red Lake, about a 30 minute drive from the main Red Lake gold mine operated by Newmont Goldcorp Corp.
The firm noted it continues its 60,000 metre drill program that is expected to continue through 2019. In order to accelerate the program, a second drill rig was added in early 2019, and a third drill rig is expected in the near future.
The company said about 40,000 metres of drilling remain in the current program.
Great Bear to host webinar with update on Dixie
The firm is set to host a webinar on Wednesday May 29th 8 a.m. PT, 11 am ET, to provide an update on the Dixie drill program, including updated information about the new discovery. The company said management will be available to answer questions following the presentation. Online registration and partication
Those interested can find online registration and participation details here and the company also said a recording will be posted on its website following the live broadcast.
Contact Katie Lewis at [email protected]