335% Potential from Current Price

The experts at Zacks Small-Cap Research have updated their analysis of the Canadian gold company Goliath Resources (WKN A2P063 / TSXV GOT). In light of the first reported and numerous pending drill results, as well as the company’s extraordinarily successful financing, the analysts are increasing their price target for the stock from $2.77 to $3.54 USD. Converted, that’s 4.96 Canadian dollars, which represents an upside potential of around 335% from the current price!

Zacks points out that Goliath offers investors the opportunity to engage with a company whose in-ground resources continue to grow and also have potential for new discoveries – while the gold price continues to trade near all-time highs. According to the experts, the downside risk for Goliath Resources is also limited, as a stream of positive news is expected to continue into the coming year.

As the analysts further explain, the company’s exploration program was expanded to 38,125 drill meters in 2024 due to strong financial support. In the process, Goliath discovered the Mothership Feeder Zone at depth and the high-grade Bonanza Triangle, as well as provided the first confirmation of mineralization at depth in the Treasure Island target area. Additionally, the company repeatedly encountered visible gold.

High Financing Volume Shows Strong Market Support

The analysts also consider it important that the management team led by CEO Roger Rosmus succeeded in raising CAD 22.62 million at a premium to the market price. Furthermore, the team expanded the 2024 drilling program from 15,000 to a planned 36,000 meters, actually achieving 38,125 drill meters and making several discoveries – despite the short drilling season in the region and the necessity to use helicopters.

Moreover, the Goliath management increased the exploration financing (flow-through) five times from an initial CAD 7.37 million to eventually CAD 16.12 million, demonstrating significant market support. At the same time, they succeeded in gaining two new significant shareholders, and existing prominent investors also participated to maintain significant positions. Additionally, Goliath was able to raise CAD 6.5 million in non-flow-through shares, putting the company in a good financial position overall, according to Zacks.

High-Grade Drill Results Expected

The analysts view the first results of the 2024 drilling program as positive and refer to the 100% hit rate for gold mineralization as well as the frequent occurrence of visible gold.

This year, Goliath also managed to discover a new mineralized zone at depth, which they named the Mothership Feeder Zone. Furthermore, according to Zacks, the company identified the so-called Bonanza Triangle, a zone with potentially even higher grades. Now, results from a total of 105 drill holes are still pending, so a significant, sustained news flow should maintain market interest.

The experts also point out that Goliath succeeded in confirming that the polymetallic mineralization of the Treasure Island target area continues at depth, although assay results are still pending. Additionally, Goliath investigated the Jackpot target area with drilling and observed mineralization there. (Results pending)

Goliath further identified a gold target area associated with a reduced intrusion and consequently expanded its land package to 91,518 hectares by staking claims south of the Surebet discovery.

In doing so, according to the analysts, Goliath took samples from mineralized rock associated with a reduced intrusion and related veins. Results are still pending here as well, but the analysts believe this could expand the mineralization scope of the target area.

Conclusion: The analysts at Zacks Smallcap Research expect a strong news flow in the coming weeks and months from both the 2024 drilling and exploration programs, which in their view will maintain market interest in Goliath Resources. As the experts anticipate high-grade drill results and view the strong market support in Goliath’s financing as very positive, they are raising their price target for the stock from $2.77 to $3.54 USD (CAD 4.96).