Breakthrough with 2024 Drilling Campaign
Already in 2023, legendary mining investor Rob McEwen had secured a stake in Goliath Resources (WKN A2P063 / TSXV GOT) – and later even increased it twice. Now the gold explorer led by CEO Roger Rosmus announces that gold producer McEwen Mining (WKN A3DMEX), founded by Rob McEwen, has also invested in Goliath!
As just announced, McEwen Mining will issue its own shares worth CAD 10 million to Goliath – based on the closing price of McEwen Mining and Goliath on Tuesday. Upon completion of the deal, the company will hold 3.76% of Goliath’s outstanding and issued shares. In addition, they will receive half a Goliath warrant for each share, which can be exercised over 12 months at CAD 2.50. Goliath Resources will ultimately hold 868,056 McEwen Mining shares.
Clearly, Goliath CEO Rosmus is highly pleased with this strategic investment in his company. Rob McEwen had recognized the potential of the high-grade Surebet discovery already in 2023 and therefore made his personal investments.
With the 2024 drilling campaign, a significant breakthrough was achieved on the high-grade Surebet gold discovery in British Columbia’s Golden Triangle, Rosmus continued. The discovery is characterized by a series of stacked, gently dipping veins with widespread high-grade gold. These contain remarkable amounts of visible gold in all rock units (sediments, contact of sediments and volcanics, in the volcanics as well as in the intrusion-related dykes) and show abundant fine-grained visible gold, including coarse-grained visible gold. In the 2023 drilling, Goliath still found visible gold in 32% of the drill holes, but in 2024 this percentage increased to 92%! Recently, the company also reported a drill hole intersection of 10 meters with 132.93 g/t gold equivalent (plus several high-grade drill holes with multiple intersections, the system remains widely open) – the best drill interval to date. As CEO Rosmus explained, this ranks in the top percentile of all drill intersections worldwide in the last 20 years!
Mr. Rosmus continued: “Each season we have seen the discovery get better, and in 2024 there were also several pleasant surprises, including the high percentage of visible gold in our deeper drilling into the system and our remarkable recently reported drill intersection. We still have 89 pending drill holes from the 2024 drilling season to report and believe we have made a second significant discovery, this time a volcanogenic massive sulfide (VMS) 35 km north of Surebet. Rob McEwen is a member of the Order of Canada and a member of the Canadian Mining Hall of Fame for his philanthropic achievements and the enormous success he had in building Goldcorp from a small gold mining company into a success story when Goldcorp mined its Bonanza Zone in its Red Lake Mine, becoming one of the lowest-cost mining companies for high-grade gold in the gold mining sector. His recognition of the success of the Surebet discovery in 2023 was greatly appreciated and we are pleased to welcome McEwen Mining to our shareholder list with this strategic investment. We are also very pleased that Goliath Resources will be a significant shareholder of McEwen Mining as the company is engaged in gold mining as well as extensive drilling in its gold projects and has a world-class copper deposit that ranks among the top 10 undeveloped copper projects in the lowest cost quartile.”
Rob McEwen, Chairman and major shareholder of McEwen Mining, believes that the Goliath Resources team has done an excellent job in developing the Surebet discovery. He stated, “What initially caught my attention was the high-grade gold they discovered, and that it was a first-time discovery in the Golden Triangle, which is a productive gold mining jurisdiction, one of the most important in Canada. Globally, new discoveries of high-grade gold in a mining-friendly jurisdiction known for its high-grade gold mines are extremely rare. They were able to make this first-time discovery because the area was, until recently, covered by glaciers and a permanent snow cover that have receded, now exposing a large area of outcropping rock that has been significantly advanced over the last drilling seasons. McEwen Mining is committed to gold mining. Our gold mines are benefiting from record gold prices in 2024, and we will be releasing an updated resource for our Fox Complex in the first quarter of 2025, where we are also conducting a 69,500-meter (budgeted at $9.7 million) drilling campaign. We are also moving towards a feasibility study for our Los Azules copper development project in the first half of 2025 and are considering taking McEwen Copper public after the release of the feasibility study (McEwen Mining owns 46.4% of McEwen Copper, Stellantis owns 18.3%, Nuton is a Rio Tinto company that owns 17.2%, and Rob McEwen owns 12.7% of McEwen Copper). I firmly believe that the future is very promising for both copper and gold, and that McEwen Mining, with our assets, is well-positioned to achieve significant growth potential in these metals.”
Now, Rob McEwen continues, they look forward to receiving the still pending analysis results from the Surebet discovery and the new VMS discovery, and to now being a strategic investor in Goliath.
