By Ronald Wortel, MBA, P. Eng.
OTC:GOTRF
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Goliath Resources (OTC: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 reached new all-time highs. The downside is limited by expected significant positive news flow into 2025.
The Company’s 2024 exploration program was expanded to 38,125 m based on strong financial support. This work discovered the Mothership Feeder at depth, the high-grade Bonanza Triangle, and the first confirmation of mineralization to depth at the Treasure Island Prospect and lots of visible gold at Surebet.
The Goliath Resources 2024 exploration program focused on expanding and further defining the mineralization system of stacked veins and shears at the Surebet Prospect on the Golddigger project in BC’s Golden Triangle camp. The advancement of the understanding of the dimensions and grade of these stacked veins and shears forms the basis of our estimated fair value target for the Company.
The 2024 drilling program was initially announced as 15,000 m. As noted in our last update the first holes of the program at Surebet returned very positive results. This included the discovery of a deep feeder zone mineralized intersection in hole GD-24-235 named the Mothership Feeder, as shown on the photo below. It was a zone of significant interest as the mineralization system at Surebet was determined to be intrusion-related, that is from a deeper source rock. This was followed by an intersection of 1.75 m of quartz veining containing specs of visible gold at a depth of 848 m in GD-24-237. Multiple gold zones are noted at depth with assay results pending. Surebet saw 64 holes drilled in 2024 and there were a total of nine drills operating at the peak. The Golddigger property is fully permitted until 2029 for 199 drill pads.
The private placement financings completed in Q3/24 were a significant positive factor for the Company. They raised over C$16 million in low-through financings to fund exploration. This is a significant total in what is still not a broadly positive financing market for junior gold explorers. This funding will allow the Company to meet its non-exploration expenditures for the foreseeable future.
Another positive aspect of the funding included the participation of existing and new shareholders. The Company attracted a new strategic fund shareholder from Singapore as well as noted industry participant Larry Childress. As well, existing shareholders Crescat Capital and Rob McEwen participated in the placements.
Catalysts and Timing
- Assay results from 105 holes including new zones, deep intersections, and RIRG targets - Q4/24 and into 2025
- High-grade assay results from intervals with noted visible gold in 2024 drilling - Q4/24 and into 2025
- New stacked vein model with target ranges – Q1/25
- Additional assays from the high-grade Bonanza Triangle zone - Q4/24 and into 2025
- Confirmation of significant grade in the Mothership Feeder zone – Q4/24
- Additional funding support and or new significant names investing in the company – Q4/24 and into 2025
- Confirmation of positive gold grades in the Blue Origin RIRG target – Q4/24
- Positive gold grades in the RIRG zones in the Surebet Prospect stratigraphy expanding or adding zones with tonnage potential - Q4/24 and into 2025
- Positive results from Treasure Island drilling program - Q4/24 and into 2025
- Positive results from the Jackpot Prospect drilling program – into 2025
We are updating our coverage on Goliath following a very successful 2024. This included a significantly expanded drilling program, discoveries, and financial support. Our new valuation target for Goliath Resources is $3.54. This is a positive increase to our price target of ~28% even with a dilution of 15% in the shares outstanding. This positive increase reflects the exceptional amount of work completed by the Company in 2024 with 38,125 m of drilling with most assay results still pending. We see these results adding value to the story through implied mineralization target size increases. Further value could be expected with improved grades as initial results show an increase in the occurrence of visible gold, and the identification of new zones within the Surebet Prospect.
We believe that Goliath Resources represents an exceptional opportunity to invest in the junior gold exploration market. We see limited negative pressures and a very long list of results awaiting delivery to the market to keep the stock in focus. We expect these results to confirm our outlook for a growing resource potential at the Surebet Prospect in BC's Golden Triangle.