Ambitious Target of 5 Million Ounces of Gold
Gold Bull Resources' (TSXV: GBRC, OTC: BLSSF) acquisition of the Sandman Project from Newmont for 4 M USD secured not only the property, but a project database valued at 20 M USD to be mined as well. Their Sandman property lies near the 4.8-million gold ounce Sleeper Mine situated in Humboldt County, Nevada.
Sandman Project located in Humboldt County, Nevada, USA
The Company was quick to show the potential at Sandman, with a 60% jump in estimated resource size, and only recently commenced their maiden drill program; the first assay results have already been announced and are shown here.
March 22 – Abel Knoll highlights
March 29, North Hill highlights
First drill hole results in GBRC's initial program at Sandman were sensational. Their objective was to test the depth and full width of a historic drill intercept that ended in high grades of 9.6 g/t Au (Hole AK06-023); drill hole SA0001 encountered the high-grade target with a 6.1 m intersection of 10.75 g/t Au which was part of a much longer, and almost entirely oxidized, zone that graded 1.67 g/t Au over 144.8 meters—results exceeding predictions of the current model.
Image 2. Abel Knoll drill hole summary
*Hole SA0001 at the Abel Knoll resource was designed to test the depth extension, width and grade of the mineralized diatreme breccia in the vicinity of a historic drill hole that ended in high grade gold mineralization (AK06-023 ended in 9.6 g/t gold).
The drill pace is brisk, with rapid mobilization of the drilling rig to the North Hill prospect, and the next batch of results released a mere week later. The confirmation drill holes tested the grade, width and continuity of high-grade zones and also resulted in the extension of gold mineralization to the west. The long intercepts and high-grade gold caught the market's attention and investors are focusing not only on the project but on the management team as well. The Gold Bull team aspires to bring 5 million ounces of gold into the new company before the end of 2021 and they are highly encouraged by their initial results.
Gold Bull Resources may be newly formed, but their management team has worked well together in the past, with much of their 20 years at Rio Tinto and LionOre. This team gives GBRC a jump on both exploration and corporate strategy in the junior space. Chairman Craig Parry, CEO Cherie Leeden, and VP of Exploration David Johnson are pulling together Gold Bull Resources' flagship Sandman project. Additionally, Parry and Michael Konnert are cofounders of Inventa Capital Corp, a private natural resources investment company whose profitable partnership has allowed them to finance some of the better projects brought to the public market.
Image 3. Gold Bull Executive
Their plan to reach 5 million ounces relies heavily on an area that has their CEO Cherie Leeden "blown away by the opportunity in Nevada". Counter to expectations of mining in Nevada, Leeden sees the opportunity not in the well-known Carlin type deposits, but rather, in epithermal deposits lying under cover. Coming from mining in Australia, where over 80% of their land mass is covered by meters of sediment and sand, their CEO is well equipped for Nevada's similar landscape, where some deposits have never been characterized with geophysical investigations.
Gold Bull's innovative approach to exploration combines multiple geophysical techniques with the enormous volume of Sandman project data. Induced polarization (IP) is one such key geophysical technique; by mapping the subsurface electrical chargeability and resistivity, exploration target areas can be searched for patterns of electrical physical properties resembling those of zones known for mineralization. Recent advances in digital data acquisition and cloud-based computing are reducing the cost of 3D geophysical surveys of this kind to the point where junior companies housing the right expertise can employ them effectively in their programs. Combining existing project data with select geophysical investigations, Gold Bull has selected shallow drill targets to map bedrock geochemistry just beneath cover over wide areas at Sandman.
Image 4. Ten Mile historic mine shaft
Says CEO Cherie Leeden,"I am a big fan of applying new science around circa hundred-year-old head frames because with geophysics it is now possible to explore for gold extensions that the old timers struggled to follow up armed only with a pick and shovel."
Investors looking for that big reward often seek companies that are operating not only competently, but with an approach, strategy, or a property with captivating attributes that other companies are not capitalizing upon. Gold Bull Resources presents both promising properties, and importantly, as CEO Leeden points out, that team pursuing wins. Leeden pursues properties that might not necessarily be deemed ‘high value' to others, but in the right team's hands, can become "an extremely valuable asset…we firmly believe that big discoveries are going to be those undercover deposits… and worth the additional costs involved with going to the extra effort."
In addition to the past successes of employing their exploration expertise in various junior companies, the excitement over Gold Bull Resources lies in the overall corporate strategy of combining smart acquisitions with their expert exploration. Leeden, as CEO, along with chairman Parry and Exploration VP Johnson are focusing on getting those ounces at the best value, whether through exploration or acquisition, as their core team operates fluently with either approach when deciding which will generate the best value per ounce.
Securities Disclosure: At the time of writing, the author holds no direct investment interest in any company mentioned in this article. I was paid by Gold Bull Resources for this article.
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