Golddigger attracts McEwen investment
North of 60 Mining News - September 20, 2023
Last updated 10/5/2023 at 1:22pm
Mining magnate agrees to invest in Goliath Resources following Precious Metals Summit.
Goliath Resources Ltd. Sept. 20 announced that the abundant visible gold within the known zones and new discovery zone at Golddigger has attracted the attention of mining magnate Rob McEwen, who is participating in a C$5 million (US$3.7 million)* financing that will significantly expand the 2023 drill program at this exciting gold project that has emerged in Northern British Columbia.
"We are extremely honored and pleased to have Mr. McEwen participating in this financing as a lead order, which demonstrates that our new discovery has attracted the attention of an esteemed investor and experienced miner," said Goliath Resources CEO Roger Rosmus.
Lying about 30 kilometers (19 miles) southeast of Stewart, BC, Golddigger is a 52,756-hectare (130,363 acres) property that covers a 56-kilometer (35 miles) stretch of the famed Red Line, a geological contact zone that runs alongside most of the major deposits in BC's Golden Triangle.
Goliath's 2023 drilling is focused primarily on an eight-kilometer- (five miles) long corridor that runs alongside Red Line. The roughly 1,600-meter-long Surebet zone and intersecting Bonanza Shear lie at the heart of this prospective corridor.
Based on modeling going into the 2023 season, Surebet is a roughly 5.5-million-cubic-meter zone that averages around 6.9 meters thick and 6.3 grams per metric ton gold-equivalent, which accounts for the value of both the gold and silver; and Bonanza Shear is a roughly 13-million-cubic-meter zone that averages about 5.3 meters thick at 2.7 g/t gold-equivalent.
All 89 holes drilled so far this year have hit mineralization and visible gold has been observed in the core pulled from 42% of those holes.
Highlights from the 2023 Surebet drilling include:
• 4.9 meters averaging 3.97 g/t gold and 84.4 g/t silver (5.75 g/t gold-equivalent) in hole GD-23-115.
• Six meters averaging 14.66 g/t gold and 11 g/t silver (14.85 g/t gold-equivalent) in hole GD-23-118.
• 6.1 meters averaging 11.39 g/t gold and 148.9 g/t silver (14.01 g/t gold-equivalent) in hole GD-23-126.
• 23 meters averaging 18.95 g/t gold and 95.3 g/t silver (21.08 g/t gold-equivalent) in hole GD-23-157.
• 26.9 meters averaging 5.81 g/t gold and 719.1 g/t silver (14.68 g/t gold-equivalent) in hole GD-23-173.
In addition to the 2023 drilling proving the consistency of strong gold mineralization within Surebet and Bonanza Shear, Goliath and its current and incoming shareholders are excited about the abundant visible gold being cut at Golden Gate, a discovery underlying Surebet and Bonanza Shear where hole GD-23-197 cut 19.2 meters of abundant visible gold.
While assays are pending for this hole, Goliath says the VG observed in the core that cut across the new Golden Gate zone is significantly more prevalent than in hole GD-23-173.
There is also emerging evidence that a feeder zone underlies all three zones discovered so far.
More cash, bigger program
McEwen, who was a keynote speaker at the Precious Metals Summit held last week in Beaver Creek, Colo., had the opportunity to meet with the Goliath team.
The executive chairman of McEwen Mining Inc. has agreed to subscribe to $1 million of non-flow-through units of a $5 million private placement of shares being offered by Goliath.
Crescat Capital, which owns approximately 18% of Goliath's issued and outstanding common shares and is the company's largest shareholder, will also be participating in the financing.
"We look forward to Mr. McEwen's input and guidance as we further drill out the Surebet discovery and continue to unlock shareholder value at our Golddigger Property," said Rosmus. "[A]s well, we very much appreciate the continued support and guidance from the Crescat Capital team."
This financing will involve a combination of non-flow-through units to be sold at a price of C63 cents, with each unit consisting of one Goliath share and one-half of a purchase warrant and each whole warrant being exercisable for another share at C78 cents for 18 months; and flow-through shares to be sold at a price of C67 cents.
Under a provision of Canada's Income Tax Act, flow-through financings allow Canadian companies to transfer expenses for mineral exploration in Canada to individual investors that purchase the flow-through shares. The flow-through investor, in turn, can apply his portion of the exploration expense to reduce or eliminate his tax liability.
Since Goliath's exploration will be carried out in British Columbia, the flow-through portion is eligible for BC Super Flow, which allows BC residents who invest in flow-through shares to claim a provincial non-refundable tax credit of 20% of their BC flow-through mining expenditures.
Goliath intends to use the cash raised from the flow-through offering for exploration of its Golddigger and Lucky Strike properties in Northern BC. The proceeds from the non-flow-through shares will be applied to general working capital and administrative purposes.
With the financing in place, which is expected to close around Sept. 29, Goliath now plans to complete 34,000 meters of drilling this year, which is nearly double the 18,000 meters announced at the onset of the 2023 drill season.
*UPDATE 09/20/2023: Goliath Resources provided an update stating that it has increased the placement to C$8.6 million (US$6.4 million) due to significant strategic and institutional orders.