Once again, Red Cloud Securities has intensively scrutinized the stock of Goliath Resources (TSX-V: GOT, FSE: B4IF) and, as with previous analyses, reached a positive overall conclusion. Therefore, analyst Taylor Combaluzier continues to rate the interesting gold explorer as a clear buy. He sees the fair price of the stock at 2.93 Canadian dollars (CAD) per share. Based on the current price, this results in an upside potential of 65 percent.
Given the extremely successful drilling campaign from the past year, Red Cloud Securities’ renewed buy recommendation comes as no surprise. Goliath Resources drilled a total of 38,125 meters on the Golddigger project in the Golden Triangle of the Canadian province of British Columbia in 2024. The results were outstanding, as in previous years. Taylor Combaluzier also views the achieved results positively, as they continue to confirm the continuity of high grades in known zones and demonstrate additional gold mineralization in new target areas.
In his review of the stock, the analyst writes: “We believe that the 2024 drilling likely significantly expanded the gold mineralization and that another large drilling program in 2025 could do the same.” It is also highlighted as positive that McEwen Mining recently made a strategic investment of 10.0 million CAD in Goliath Resources and now holds a stake of about 5.4 percent in the company. As McEwen Mining is a recognized player in the mining sector, this participation can be seen as an important confirmation of Goliath Resources’ potential.
Increase in Surebet and Bonanza Mineralization to 4.0 to 6.0 Million Ounces Gold Equivalent Expected
Red Cloud Securities estimates that the mineral occurrence on Golddigger in the Surebet and Bonanza zones alone could now increase to about 4.0 to 6.0 million ounces gold equivalent, based on an average gold equivalent grade of 6.62 g/t. Due to this expansion of mineralization, Taylor Combaluzier feels justified in raising the price target for the Goliath stock from 1.60 to 2.93 CAD.
Goliath Resources is particularly appealing due to its outstanding drilling results. Many drill cores contained visible gold and the average gold grades are high. Over the years, this has led to Goliath now having a notable shareholder structure. Management and insiders hold 19 percent of all outstanding shares. Crescat Capital LLC has a 14.4 percent stake, Global Commodity Group 5.2 percent, and McEwen Mining 5.4 percent. Rob McEwen himself holds another 3.9 percent. Thus, his personal stake in Goliath Resources is slightly larger than that of Eric Sprott, who holds 3.0%.
Goliath Resources Impresses with High Gold Grades and High Continuity
The 2024 drilling results in the Surebet zone were characterized by high continuity of grades and thicknesses compared to previous years. Goliath drilled 64 holes in this part of the project last year, identifying four new zones. This increased the total number of gold-rich layered strata to twelve. Highlights from last year’s drilling included 4.34 g/t gold equivalent over 8.0 meters in drill hole GD24-269, 6.91 g/t gold equivalent over 5.0 meters in GD-24-245, and 4.61 g/t gold equivalent over 5.0 meters in GD-24-258. These intersections show good gold grades over mineable thicknesses, and all twelve mineralized layers at Surebet are still open for expansion.
However, Surebet is not the only iron Goliath Resources currently has in the fire at Golddigger. Further high-grade gold discoveries were made in 2024 in the Bonanza zone. A total of 19 holes were drilled here in the previously identified Bonanza Gold Triangle. The Bonanza Gold Triangle represents a zone of high-grade gold mineralization at the structural intersection of the Surebet and Bonanza zones. Here, 7.33 g/t gold equivalent over 13.10 meters in drill hole GD-24-254, 5.91 g/t gold equivalent over 5.0 meters in GD-24-293, and 12.68 g/t gold equivalent over 3.14 meters in GD-24-297 were demonstrated.
The Potential Not Yet Considered in the Valuation is Significant
Red Cloud Securities now estimates the mineral inventory in the Surebet and Bonanza zones at approximately 4.0 to 6.0 million ounces of gold equivalent with an average grade of 6.62 g/t gold equivalent. Other zones, as well as a potential extension of mineralization at depth, have not yet been considered in the current assessment. In particular, the Jackpot deposit, located only about 1.4 kilometers from Surebet, is classified as very promising. In 2024, six drill holes were completed here, with the best result yielding 2.26 g/t gold equivalent over 2.45 meters.
However, this may not be the end of the line, as Taylor Combaluzier expects Goliath to expand the calculated mineral inventory by about one-third through a drilling program worth approximately 17.5 million CAD with a total length of about 35,000 meters in the current year. To bear these costs, the currently debt-free company would need to raise an additional ten million CAD on top of its existing cash reserves.
For invested shareholders, this means that the current stock price does not yet adequately reflect the potential of the Goliath stock, and further price increases are certainly possible in the future. Therefore, the coming months and the new drilling program can already be eagerly anticipated.
