Hydra Capital's excellent take on Goliath Resources Goliath Resources (GOT.V, last at $1.39)
I have checked for awareness of this name in about two dozen corners of the market and aside from Quinton Hennigh (Crescat Capital), a couple of junior mining circuit/conference types, and Eric Sprott, it would appear that no one is really following it. I don’t actually mean no one, but not many of my contacts could even tell me the ticker, let alone anything about the project. To me, that indicates that Goliath’s Golddigger project is still flying under the radar of the institutional community and popular brokerages. Just for fun, I interviewed myself on the name below. You get the first question…
You: So what? Lots of things fly under the radar. I’ve got a list as long as my arm of things that are “under the radar”, and I hate gold…
Me: Everyone hates or has very little exposure to gold right now. If gold was popular, GOT wouldn’t have a 1-handle on it. Now, on your list, how many wide-open, 6 to 8 million ounce gold deposits with tidewater access, located just south of Stewart, B.C. in the southern corner of the Golden Triangle, with clean metallurgy do you have?
You: Wait a minute, 6-8 million ounces? What’s the market cap?
Me: About $100 million.
You: So this is trading at less than $20/oz?
Me: Yep. No mercury, no arsenic, 38% gold recovery on gravity alone, 98% overall, no cyanide required. Yours for less than $20 per napkin ounce.
You: What’s a napkin ounce?
Me: The kind of ounce that has been figured out on the back of a napkin.
You: How do you know it’s 6-8 million ounces?
Me: I don’t, but my calculator suggests it could be, and an initial resource estimate based on the past two-year’s drilling will be ready in the first half of next year. The company has drilled off a 1.6 square-kilometre “panel” and the aptly-named Surebet zone is present everywhere they drill. They hit 24 of 24 holes in the 2021 discovery season and they just completed a 26,000 metre program this summer which results are pending. Goliath hit on every hole (68 out of 68) that they drilled within that 1.6 square-kilometre area this year. Recent press releases suggest that average zone thickness has increased relative to last season, so I’ve assumed an 8-metre average thickness for the zone overall. The average grade from last year’s drilling was about 6 g/t Au equivalent. The specific gravity of the rock is around 2.9 tonnes per cubic metre. That’s around 30 million tonnes of 6 g/t material contained in what is essentially a sheet-like, shear-controlled deposit. It’s remarkably predictable and consistent thus far. Tweak grade or thickness a little and you can move the numbers around, but it looks big regardless, and is still open to expansion. I expect that the deposit will have thicker and/or richer chutes within it, so assays will be important in order to see how grade distribution evolves.
You: Assays? When are they expected?
Me: I’m not sure. The company has guided to some time soon-ish. Assay data may come in batches, or all at once. I’d prefer batches, but if the grades are good, I don’t care how they do it.
You: You said Sprott is a holder? And Crescat?
Me: Yep, Eric Sprott bought GOT at 55 cents last February before GOT had drilled a single hole into the Surebet zone. Crescat owns 20% of GOT. Insiders own 10% and are essentially “unknown” as far as Bay Street is concerned. Quinton Hennigh is the biggest champion of the stock by a mile and his most recent video is worth watching if you want to learn about the project from someone who knows it better than anyone. The video link is indexed to start where the Goliath discussion starts. (https://www.youtube.com/watch?t=2944&v=9_D0KgMZbJE&feature=youtu.be&themeRefresh=1)
You: Thanks, this does sound interesting.
Me: Only thank me if it works out. Good luck with your research.
https://www.hydracapital.ca/2022/10/27/silver-linings/