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Goliath Continues to Deliver Gold

Bob Moriarty
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Nov 9, 2022

I wrote a piece a few days back listing ten exceptionally low market cap stocks selling for less than $.05 a share. I noticed in 2016 and 2020 that when gold and silver tanked and eventually turned higher, it was the really cheap stocks that went up the most in percentage terms. In other words, a stock that goes from $.02 to $.04 has made exactly the same return as a stock that goes from $2.50 to $5. And it had nothing at all to do with the quality of the stock or the commodity or the jurisdiction. The cheap stocks went up the most.

I also made it clear in the piece that I believe we have turned higher for the metals and resource stocks. I showed a chart of Bear Creek Mining that I think would reflect the behavior in the future as an analog of BCM’s pattern.

But what if as an investor you are not interested in buying the lowest of the penny dreadfuls? What if you want security in knowing that you can invest for the long-term is a high quality stock with a bright potential? Well, there are dozens of ultra-high quality stocks that have lost 50-80% of their price yet remain top tier investments. They may not go up 2000% but for sure are going to copy the behavior of BCM in 2008, 2016, 2020 and now. And you can sleep at night.

These would include Snowline, Western Alaska Mining, Core, Eskay, Paycore, Newfound Gold, Labrador Gold and many more. Which brings us to another surebet - as in Goliath Resources with their Surebet discovery within the Golddigger project.

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.

On the 7th of November the company released more outstanding drill results including 22.03 g/t Au and 127.62 g/t Ag over eleven meters. Their first batch results from last year demonstrated high grade intercepts in 96% of the holes drilled. That is remarkable. Go to the Goliath website and scroll through the presentation just released and it will tell you everything you need to know about the project.

Their deal on the project is exceptional for them. I would guess they have already spent the $14 million in exploration. They will have to complete a 43-101 in the next 14 months but I don’t see that as any sort of issue. One thing that would be an issue for most companies would be how do they raise the tens of millions necessary to outline a substantial resource.

They thought about that and on page 4 of their presentation they show having $25 million in potential income from the warrants already in the money. I’m going to make a strange prediction. They will get taken out before they need to do another private placement. The warrants and options outstanding, all of which are in the money, amount to $33 million in total. I don’t know of a single junior that is true of, other than Goliath.

At today’s price Goliath has a market cap of $115 million in CAD. There is no question but they have a lot of gold, just how much? I think they have 3 million gold equivalent ounces up to maybe 6 million. They have more than enough cash for a lot of drilling and the more drilling, the more they will discover.

If you figure 3 million ounces, that would make an ounce worth perhaps $40 CAD or $30 USD. I figure that as a minimum they should be worth $100 an ounce in USD for a 330% increase in price. But if they define 6 million ounces, that makes an ounce worth about $20 in CAD or $15 in USD. With the consistency of hits, there will be a bidding war on these ounces one day and they will be worth more like $400 an ounce in USD.

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
GOT-V $1.63 (Nov 08, 2022)
GOTRF OTCBB 71.1 million shares
Goliath Resources website

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Bob Moriarty
President: 321gold
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321gold Ltd


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