Goliath Resources Is On A Path To Finding A Multi Million Ounce Gold Mine Of The Future
It is great to have Goliath Resources (GOT.V) as a new sponsor, they are well positioned to join the gold bull market with catalysts for remarkable performance.
Since the banking crisis came into the picture in early March 2023, gold has been on an exceptional run. A new bull market started for gold in November 2022, and then had a short term correction in February 2023. What caused that pull back was stronger than expected employment numbers that had currency traders acting like the Fed would crank up their interest rate increases.
When the banking crisis hit, currency traders started putting pressure on the USD and gold resumed its bull market trend. Prior to the banking crisis we had seen the Fed’s relentless rate hikes breaking the housing market, and spilling over into auto sales and other big ticket items while consumers are depending on their credit cards to make ends meet paying 19% interest rates.
The Fed ignored the housing market slowdown and sales of other products coming under pressure, but the banking crisis has changed the outlook for future rate hikes. When their favourite child, the banks, came under pressure they were forced into action by backstopping depositors money in the banks that needed to be closed due to bank runs.
One of their most troublesome actions is lending money to banks with underwater bonds and other assets using those underwater assets at par. They even started talking about backstopping all depositors' money at banks which is around an $18 trillion dollar backstop.
We are still only in the early innings of the banking crisis that will have contagious effects. These problems are not isolated; there are plenty of banks and other institutions holding a lot of the underwater assets.
The Fed is holding trillions of similar assets as Silicon Valley Bank and other troubled banks. In fact, their holdings in these underwater assets makes Silicon Valley Bank and others look like a drop in the bucket.
When an animal is weak, their predators will attack. We are seeing that happening with currency wars, with several countries trying to add competition to the USD’s world reserve currency status.
Central bankers in many countries are seeing that the USD is troubled and are also seeing the same factors as I just mentioned and have as a group went on a gold buying spree in 2022. It looks like they are on a path to set a new gold purchasing high that will exceed 2022 in 2023.
What they are effectively doing is putting themselves on somewhat of a gold standard. They are showing their cards to investors and it is becoming clearer that investors should be doing the same.
The bottom line is that gold is a safe haven for investors that want to protect their money. Those that want to grow their money should be positioning themselves in gold, silver and other metals stocks that are lagging and as a group are at record low valuations.
A perfect storm is here that will without a doubt bring generalist investors into gold, silver and other metals. As they arrive they will start looking at the metals stocks and moving into them and because they are so cheap it won’t take a lot of buying action to drive valuations much higher. We are coming into the gold tide raising all boats and some will significantly outperform their peers.
One such company with that realistic potential is our new sponsor Goliath Resources. They have what is clearly a 2-5 million ounce gold target that could get even bigger. What gives me confidence to make such a bullish prediction starts with what they have already found and where that is pointing them.
They say a picture tells a story and Goliath has remarkable pictures.
The yellow line represents where the Surebet zone comes to the surface and outcrops, magenta and purple lines represent key faults. When metals bearing fluids make their way to the surface they follow faults that are cracks in the earth that are a path of least resistance for those fluids to follow.
So their project checks those important boxes, then you need mineralization. This next image shows a top down view of the zones, yellow is the main Surebet zone and above that is a series of stacked zones.
The next image is a side view of the various zones. It is clear that they have a very large area of mineralization.
These zones are modeled based on their drilling to date. They have had two seasons of drilling and drilled into an area of 1.6 Km2 in the Surebet Zone at their Golddigger project. The drilling in the zones has an average grade of 6.31 g/t gold equivalent over 6.88 Meters. That my friends is a lot of gold and it is still open to get bigger.
Going back to the first image, you can see that all the faults are coming together at the bottom of the mountain. And the zones of mineralization are all going in that direction as well and remain open.
On February 2, 2023 they put out a news release describing the findings from a scientific study. A few things stood out from that study, one is that the faulting and mineralization are pointing toward a deep feeder system. In addition, there are several other targets which could all be related to the deep feeder system.
Drilling to date has included 92 holes with 89 (or 97%) hitting gold in widely spaced drill holes. They come from within the 1.6 square kilometer area drilled in 2021 and 2022 that intersected broad high-grade intervals of gold-silver mineralization, some containing visible gold, confirming strong gold mineralization and demonstrating the continuity of this newly discovered large gold system.
I’ve pulled some of the highlights from the study that stand out to me. With the size of the zones, and the faulting it is reasonable to assume that the feeder is very big and powerful that has created the zones of known mineralization.
If the feeder is also responsible for the mineralization at the other targets it only adds to the potential of how powerful the mineralizing system is. The success that they have had with the drilling is very impressive and a testament to the quality of the work their team is doing and the predictability of the zones.
Following the impressive scientific study they put out, on March 1, 2023, they announced results from metallurgical studies. The following quote describes how important that work was and what it means for the potential to mine what they have found.
“Recent metallurgical test results indicate Surebet displays a number of optimal characteristics,” commented Quinton Hennigh, Technical and Geologic Director of Crescat Capital, a strategic shareholder of Goliath Resources. “Even at a coarse grind size of P80 327 μm, or 0.327 mm, minerals that are sought are readily liberated and recovered by gravity and flotation techniques. Overall recoveries of 92.2% gold, 86.5% silver, 94.2% lead and 96.9% zinc were achieved, and a concentrate weighing just 11.9% of the original sample mass was produced. Gravity recovery of gold, 48.8%, is notably high. This bodes well for future development of Surebet. Gravity and flotation techniques are generally less capital intensive to develop and lower cost to operate than other types of precious metal processing. Seldom does one see such simplistic, favorable metallurgy in a gold-silver project.”
As you can see they are ticking off all the boxes that are important to having a potential mine. Another crucial box is geological location and accessibility. In the image below you see that they have a large land package located in a key geological region where several mines are located and are close to road access and water access.
Like in a court case, it is clear to see a preponderance of the evidence that they have a big system, that can get much bigger. They have an excellent team that is leading them to success with drilling, and with the metallurgy and accessibility are all making for a unique story.
These kinds of discoveries are not easy to find and the key reason it has not been found before is because in the past it was covered by glaciers that hid it from everybody. Now that the Goliath team have found it, they are doing remarkable work and it looks like they have the realistic potential of having a future mine on their hands.
In Closing
I’m constantly on the hunt for high quality junior mining companies with buried treasures as I see a very bullish market developing for these kinds of companies. It is great when I find them when they are dramatically undervalued and can add them to my sponsorship program. It gives me the opportunity to provide plenty of content on them as they progress.
It is clear from the images above that Goliath Resources has an excellent story and are checking off all the boxes to establish they are easily looking at a multiple million ounce gold project. Yet, they still have a modest valuation, with plenty of catalysts coming from their ground and a developing bull market for gold that will add fuel to their fire.
Next up, I will conduct a follow up interview to discuss the information provided in this report and also hear more details from management. To do additional research on the company I recommend checking out their website for their news releases and corporate presentation to learn more about their compelling story.
As always, my reports are for information purposes only, they are not investment advice, it is important for you to speak with your financial advisors to determine if the companies I report on are suitable for you.
I’m a big promoter of investors doing their homework. Ultimately, well informed shareholders that understand the companies they invest in, and have reasonable time frames for companies to reach their success, are prone to make logical investment decisions not emotional ones. This is a recipe for success investing in any sector.
All the best,
Allan Barry Laboucan
Glad to see that Rocks and Stocks will be initiating coverage on Goliath Resources. I currently am a shareholder. This a a growing world-class discovery in British Columbia's fabled Golden Triangle.
Look forward to future updates from you Allan.