Zacks Small Cap Research – GOTRF: Zacks SCR Update of Coverage of Goliath Resources Ltd. – Technologist
By Ronald Wortel, MBA, P. Eng.
READ THE FULL GOTRF RESEARCH REPORT
Goliath Resources (OTCQB:GOTRF) provides investors exposure to gold-silver-copper resource exploration and leverage to an increasing in-ground inventory with discovery upside during a gold price market that is reaching new all-time highs.
The Company is focused on expanding its resource target model tonnage at the Surebet prospect and making additional discoveries on its 64 km2 Golden Triangle property. A 15,000m drill program and continued surface exploration are underway for the summer of 2024. The initial visual results are very encouraging at the start of the drilling.
The Company started its 2024 drilling and exploration program at their Surebet Prospect on the Golddigger property and announced initial visual results. In the first drill hole of 2024, the Company reported the discovery of a new deep zone, the “Mothership Feeder Zone” containing abundant visible gold and strong sulphide mineralization in quartz breccia at 648 meters downhole and 125 meters in elevation above the valley floor from drill hole GD-24-235. The trace of the drill hole in section and the relationship to the known mineralized structures of the Surebet prospect is given on the Figure below. Within the andesite unit of GD-24-235, a 10-meter interval hosting a series of closely spaced quartz sulphide veins was observed between 550 and 650 meters downhole with abundant visible gold, and estimated up to 30 % pyrrhotite, 3 % chalcopyrite, 1 % sphalerite, and 1 % pyrite, assays are yet to be reported.
A second hole, GD-24-23, as shown above, intercepted abundant visible gold from four mineralized zones with Surebet – style mineralization – the Bonanza Shear, Golden Gate Zone as well as a mineralized porphyritic intrusive dyke for an aggregate of 105 meters with assays are pending. These four mineralized intervals show some of the strongest mineralization with the highest density of veining, stockwork, and breccia observed to date in the drill core from the property; the system remains wide open.
Additional exploration drilling initially was proposed on new prospects such as Treasure Island, and Full Contact. Treasure Island and Full Contact are drill targets on the Cambria Icefields ~35km north of Surebet. The program was updated to only test the Treasure Island prospect.
Drilling at Treasure Island prospect underway.
Catalysts and Conclusion
➢ Drilling to expand and improve targeting size on Surebet Zone’s 10 vein structures – ongoing
➢ Individual high-grade results from drilling throughout the 2024 season – visible gold noted
➢ Discovery of new mineralized zones at Surebet at depth to increase the total target size – new Mother Lode Structure
➢ Discovery of a higher-grade feeder zone target as theorized from metal zoning analysis – intrusive rocks and mineralization noted
➢ Positive indications and mineralization related to a porphyry deposit on the project – molybdenum and bismuth identified
➢ Indications of additional mineralization zones associated with prospects in the Cambria Ice Fields block at Treasure Island, Metallica, Big One, and Full Contact – ongoing
➢ Continued and/or significant increases in the metal prices for gold, silver, and the project’s base metals, resulting in greater potential in-ground value – gold and silver prices reaching new recent highs
➢ Transactions in the Golden Triangle indicating an increased interest in assets in this region – funding of Eskay Creek mine development (US$750 million) and infrastructure funding (C$142 million)
The Company’s initial visual reports and interpretation of the first two holes of the 2024 season confirm our outlook for the project and this program. We expect the drilling to continue to confirm the grade tenor of the Surebet prospect’s mineralized structures and veins. We expected the Company to drill deeper to locate a potential feeder zone. The drilling program continues and we look forward to seeing the assay results from these holes as they are reported to add to our outlook for the grade and size of the mineralized system at Surebet. Our valuation will be updated when sufficient new drill hole results for the Company to report new size estimates for 10+ mineralization target zones for the prospect. Additional market value may be realized from the results of drilling at Treasure Island and Jackpot projects showing the depth potential of the surface mineralization discovered thus far.
Our price target is based on a 1% discounted in situ value of our estimated outlined and expected gold equivalent ounces at the Surebet prospect, and book values for their Lucky Strike and Quebec projects. The indicated target remains at $2.77.
We believe Goliath Resources provides investors with an excellent opportunity for capital appreciation with expected continued success at their Golden Triangle, B.C., projects in this positive market.
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