Goliath Drills a 718-Meter Porphyry
Goliath Resources (GOT-V) released an interesting press release on August 15th that doubled the price of the shares in the next week. The company drilled a 718-meter hole, limited only by the constraints on the drill, that hit mineralized material right from surface for the entire length of the core. If it runs the expected gold/copper/silver/moly that they were finding on surface, it will go a lot higher.
I wrote about the company a little over a year ago. The shares were new then and twice what they are now even with the latest results.
Goliath is drilling the Lucky Strike property. So far they have completed one hole and are in the midst of drilling the 2nd hole. The 2nd hole is planned for about 700 meters. This initial drill program will have three holes.
They are paying the vendor $989,000 over a five year period and have a $6.5 million work commitment to own 100% of the project.
The company has 68 million warrants outstanding at an average exercise price of $.19 so any initial success will cash up the company with over $13 million in cash so the work commitment will be no problem.
From a technical point of view, it would appear the initial hole at Lucky Strike was a home run. The core is being cut and will be off for assay shortly. Results will be back by mid-October so until then the grade is an interesting mystery.
The Lucky Strike project is surrounded by porphyry and lies near the Golden Triangle of Northern British Colombia. While it is greenfield exploration, the intercept shows good understanding of the technical issues. Soil samples taken in 2018 and earlier this year support the potential for a massive system.
Goliath is not intending to take anything to production. They want to do the initial geochemical and soil samples to support the drill program and with any success joint venture the project to any interested major.
I would guess the majors would be looking real hard at the core to think of doing a deal. Since Goliath has to spend $6.5 million anyway, I would expect any initial success to be followed up with a lot more drilling prior to doing a deal.
Goliath was an advertiser before but is keeping all their cash for the drill program so are not currently an advertiser. Based on what seems to me to be an excellent start to the drill program, I have gone out into the market to buy shares so I am biased. They are doing an excellent job of communication so I would encourage any potential investor to spend a lot of time researching the company and the project.