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Goliath Drills More Outstanding HolesBob Moriarty Friday August 12th is a full moon. Full moons tend to mark either reversals or acceleration in the direction the commodity is already moving. The DSI on gold is 35 and that suggests gold will move a lot higher and maybe soon. Small investors are not buying into the advance of the last three weeks and that is a good sign for the near future for gold. Goliath Resources (GOT-V) is one of those companies that you only need to find once or twice in an investment career to make your retirement. I was writing about the company as long ago as 2019. The shares hit $1.62 in mid-2021 and currently stand at $1.20. I wrote about the company with an update again on January 12th of this year. This is one of the easiest stories you will ever consider investing in. Goliath has a project in the Golden Triangle named the GoldDigger property. They have an option for 100% of the project subject to a 3% NSR. They have issued 200,000 shares and 200,000 warrants and paid about $600,000 in cash. If they spend $6 million in exploration and deliver a 43-101 by December 31, 2023 they can earn 49%. If they spend an additional $8 million by December 31, 2026 they will have earned the other 51%. They also have to pay $.50 an ounce for proven and probable ounces of gold equivalent or M&I ounces. The GoldDigger project consists of about 24,000 Ha of land located on tide water about 30 Km southeast of Stewart BC in the nest of a bunch of similar mines and past producing silver/gold mines including the Dolly Varden Mine, and Homestake Ridge. Goliath has been focused on drilling the Surebet Zone. Last years drill program consisted of 24 holes. All 24 hit serious gold/silver numbers. Rather than bore my readers silly by listing each intercept, the company worked out the average of all 24 holes showing 5.87 meters of 6.29 AuEq. That was based on 4.35 g/t Au and 104.94 g/t Ag. At today’s prices for gold and silver that makes a tonne of ore worth just over $318 USD. That’s wildly economic. (Click on image to enlarge) With a 100% success rate on drilling there is no question, Goliath will spend the required $14 million on GoldDigger. They would be insane not to. So it’s silly to think of anything except them owning 100% of the project. On the strength of last year’s drilling, the company raised about $14 million and closed on it in March. In June Goliath announced commencing a 24,000-meter drill program with four drills and planning on a total of 85 holes. When a company drills any project they want to learn two things. (1) where the mineralization is and (2) where it is not. So Goliath will be doing infill drilling where they already know they have ore and some drilling to expand the resource limits. Since assays have been taking so long, the company has gotten into the habit of reporting visual indications of mineralizations. I’m not sure I fully approve of that, it has a tendency of attracting weak hand investors who will then buy the rumor and sell the news but it is what it is. Drilling to date has shown some absurd intercepts such as 95.5 meters in the first hole and 135 meters of mineralization in the 2nd hole. In early July the company issued a press release showing 360 meters of breccia from surface. The company has also added a fifth drill rig and has $10.4 million in warrants solidly in the money so they are good for cash. This has already been a giant success story. At today’s market price of $1.20 CAD and about 70 million shares, the company has a market cap of about $66 million in USD. With the quality of the ounces, the location and lack of geopolitical risk I would use $100 an ounce of AuEq. That would infer a resource of maybe 660,000 AuEq ounces. Which of course is absurd. Nobody ever hits 100% of drill holes and 24 in a row is an outlier. They have a lot more gold than 660,000 ounces. More like 3-6 million ounces. So the company is already up 900% and they could do that again. That’s market cap, not necessarily share price but the shares are going a lot higher when assays come out. Goliath is an advertiser. I have participated in a PP in the past and bought shares in the open market. Do your own due diligence, I am biased. Goliath Resources Limited ### Bob Moriarty 321gold Ltd |
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