By Ronald Wortel, MBA, P. Eng.
OTC:GOTRF
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We are initiating coverage on Goliath Resources (OTC:GOTRF) as the stock 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 planned to start in June of 2024.
Our price target is based on a 1% discounted in situ value of our estimated outlined and expected gold equivalent ounces in the target model at the Surebet prospect, and book values for their Lucky Strike and Quebec projects. The indicated six-month target is $2.77.
Goliath Resources is a junior resource exploration company with projects in British Columbia’s Gold Triangle. This region is known for large gold, silver, and copper deposits. However, many of these remain undeveloped.
There are currently only two operating mines and a third at start-up. The region’s remote location and limited infrastructure limits exploration and development yet provides opportunities for juniors like Goliath to make significant discoveries. Their Surebet prospect on the Golddigger project is developing into one of these significant discoveries.
The Company is outlining a gold-rich polymetallic resource at the Surebet prospect with a current target model of ten veins ranging from 76 to close to 100 million tonnes of mineralization. Resource definition on this modeled target continues in 2024. The large property package, including their Lucky Strike property, contains numerous other mineralized prospects that could deliver additional discovery upside to this story in this very positive gold price market.
Catalysts for 2024
➢ Drilling to expand and improve targeting size on Surebet Zone’s 10 vein structures.
➢ Individual high-grade results from drilling throughout the 2024 season.
➢ Discovery of new mineralized zones at Surebet at depth to increase the total target size.
➢ Discovery of a higher-grade feeder zone target as theorized from metal zoning analysis.
➢ Positive indications and mineralization related to a porphyry deposit on the project.
➢ Indications of additional mineralization zones associated with prospects in the Cambria Ice Fields block at Treasure Island, Metallica, Big One, and Full Contact.
➢ 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, market interest.
➢ Transactions in the Golden Triangle showing an increased interest in assets in this region.
The gold bullion market was setting record prices almost daily for the past three weeks, after a more gradual price improvement since late 2022. The gold bullion spot price is up over US$390/oz over the past year, 19%, and US$235/oz, 11%, in the past 30 days with a recent trading high of US$2,425/oz.
The junior gold equities were experiencing a significantly drawn-out period of poor performance and weak financing markets. This is illustrated by the chart of the gold price relative to the VanEck Junior Miners ETF. The stocks are reacting to this improved market and Goliath is looking to follow this trend.
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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