Gold Play: Goliath Resources (GOT.V)

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Written By: Marc Challande

Francophone

Published : April 24th, 2022

Goliath Resources Limited (TSX-V: GOT) (OTCQB: GOTRF) (FSE: B4IF) is currently witnessing an increase in its market-cap valuation. Year-over-Year, investors enjoy an 87% increase in its stock price. The Canadian-based company explores projects in the prolific Golden Triangle of British Columbia and Abitibi Greenstone Belt of Quebec. 

goliath resources

Goliath Resources is a junior resource exploration company of precious metals.. Both BC properties have returned widespread mineralization of high-grade Gold, Silver, and/or Copper. The Company has discovered the “Surebet Zone,” an extensive new high-grade polymetallic gold-silver shear zone that remains open on its 100% controlled Golddigger property just southeast of Stewart, British Columbia.

Over the last year, the company shared much positive news:

• 100% of all 24 holes drilled during the 2021 maiden campaign totalling 5332 meters intersected significant high-grade gold-silver mineralization over 1 km of strike and 1.1 km of down-dip extent.

• This successful maiden drill campaign confirms the continuity and extensive scale of a high-grade gold-silver polymetallic system that remains open.

• GD-21-03 intersected 6.37 gpt AuEq (4.46 gpt Au and 122.13 gpt Ag) over 35.72 meters*.

• GD-21-05 intersected 12.6 gpt AuEq (8.06 gpt Au and 313.66 gpt Ag) over 6.38 meters*.

• The average grade and width from the best hole from each of seven widely spaced drill pads assayed 9.42 gpt AuEq (6.66 gpt Au and 172.66 gpt Ag) over 6.43 meters*.

• The average grade and width from all 24 holes assayed 6.29 gpt AuEq (4.35 gpt Au and 104.94 gpt Ag) over 5.87 meters*.

• A newly discovered “Extension Target” of widespread high-grade gold-silver polymetallic mineralization outcrop was found 500 meters southeast of the Surebet Zone, 1200 meters by 400 meters.

Share Structure/Fundamentals

There currently are 68.7M shares outstanding for 114M shares fully diluted. This number is common for junior mining companies as they often need to raise cash to continue their explorations. GOT has 6.8 options and 38.5 warrants (avg. @ $0.40) which enable the company to earn $10.6M in cash if needed. 

Recently, the company closed a $14,609,749 private placement with the participation of strategic and institutional investors; inclusive of Crescat Capital LLC (“Crescat”). The flow-through units were sold at $1.19 each. These funds will be used for a significantly larger 2022 drill campaign from a planned 18,000 meters to ~24,000 meters at its Surebet Zone at its 100% controlled Golddigger property located in the Golden Triangle, BC. The drill campaign planned will include ~85 holes from 24 pads to test the outer extremities of Surebet Zone to determine the potential size of the system as well as the newly discovered adjacent Extension Target to the southeast.

On the float side, the data is great. With BOD, management & team owning 10%, Crescat Capital detaining 20%, and Eric Sprott holding 10.7%,  59.3% of the outstanding shares remains for the retailers.

goliath resources

Share Movement

The stock is currently traded at $1.49 for a $100M market cap. Investors witnessed a 52 -week high of $1.62 (reached on July 27th, 2021) and a 52-week low of $0.60. Besides, the stock price should not get its low range as the company already released positive results: “This first-ever study of the formational environment of the Surebet Zone provides strong support for significant upside potential at Surebet and elsewhere across the Golddigger property.”

The moving averages show a significant uptrend. Its Simple MA (20) is $1.32, and its simple MA (200) is $0.97. According to these MA, the chart indicates an uptrend since March 8th, 2022. In the meantime, its RSI just reached 70, meaning the stock entered the overbought area. We could witness a consolidation around these prices. Regarding daily fluctuations, the Bollinger bands indicate we could currently see variations between $1.54 to $1.11. If there are any sellers, it would be an excellent opportunity to add more shares or start a position. 

There currently are two big orders: 

-1 wall at $1.

60 (32k shares for 1 sell order);

-1 support at $1.25 (56k shares for 8 buys order).

About the volume, GOT saw its daily average lowering the last couple of days (86k for the 1- day ADV vs. 126k for the 50-day ADV). This isn’t surprising. Because of many geopolitical struggles, investors wait for positive news from worldwide economies.

Bottom Line

The uptrend movement should last for a long time as the commodity sector is very bullish. The company proved over the last year its projects are valuable and very promising for the future. Adding GOT to your portfolio is an excellent opportunity to have a safe asset with a potentially significant upside.

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