Goliath Resources Ltd.'s (GOT:TSX.V; GOTRF:OTCQB; B4IF:FSE) final results from 2024 drilling at its Golddigger gold-silver project in British Columbia's Golden Triangle are in and are positive, reported Taylor Combaluzier, vice president and mining analyst, Red Cloud Securities, in a March 11 research note. Red Cloud increased its target price on Goliath by 81% to reflect the current estimated mineral inventory at part of the project.
"We believe that 2024 drilling likely significantly expanded gold mineralization and that another large drill program in 2025 may do the same," Combaluzier wrote.
65% Return Implied
Red Cloud's new target on the junior resource explorer is CA$2.90 per share, up from CA$1.60, noted the analyst. In comparison, Goliath was trading at the time of the report at about CA$1.76 per share at a discount to peers, with an enterprise value of CA$245.4 million (CA$245.4M) versus CA$378.7M."
"Additional positive results could help close the gap," added Combaluzier.
With the new target, the potential return implied is 65%.
Goliath remains a Buy.
The company has 144.4 million shares outstanding. Its market cap is CA$254.1M. Its 52-week range is CA$0.76–2.87 per share.
More High Grades
Combaluzier reviewed the final results of the 2024 drill program at Golddigger covering 38,125 meters (38,125m). Taking these data into account, Red Cloud estimated the mineral inventory of just the Surebet and Bonanza zones at about 4,000,000–6,000,000 ounces of Au eq at 6.62 g/t.
As for the final batch of results from 2024, those from Surebet showed good gold grades over mineable widths. Highlights included:
- 4.34 grams per ton gold equivalent (4.34 g/t Au eq) over 8m, hole GD-24-269
- 6.91 g/t Au eq over 5m, hole GD-24-245
- 4.61 g/t Au eq over 5m, hole GD-24-258
In total last year at Surebet, Goliath drilled 64 holes, and through those identified four zones. Those zones expanded the total amount of gold-rich stacked layers to 12. All remain open to mineralization.
Bonanza returned more high-grade gold intercepts, highlights of which included:
- 7.33 g/t Au eq over 13.1m, hole GD-24-254
- 5.91 g/t Au eq over 5m, hole GD-24-293
- 12.68 g/t Au eq over 3.14m, hole GD-24-297
At the intersection of Bonanza and Surebet sits the Bonanza Gold Triangle, a zone of high-grade gold mineralization. In this area, the company drilled 19 holes in 2024.
Two Other Zones
Combaluzier mentioned the Jackpot and Treasure Island zones as well. Last year, at Jackpot, which is 1.4 kilometers east of Surebet, Goliath drilled six holes. From those, the highlight intercept was 2.26 g/t Au eq over 2.45m.
"Further work is warranted to determine its relationship with mineralization at Surebet and Bonanza," the analyst wrote about Jackpot.
As for Treasure Island, the company drilled 12 holes there in 2024, and results confirmed that quartz-sulfide veins and shear zones there, rich in pyrite and chalcopyrite, host gold mineralization. Standout intercepts included:
- 1.25 g/t Au eq over 7.12m, hole TI-24-04
- 1.34 g/t Au eq over 4.10m, hole TI-24-05
In other news, Combaluzier noted, McEwen Mining Inc. (MUX:TSX; MUX:NYSE) recently made a CA$10M strategic investment in Goliath and now owns about 5.4% of it.
"We view this as an important endorsement [of] the company," wrote Combaluzier.
What's To Come
The next catalyst expected for Goliath is its announcement of this year's exploration plans, expected in H1.
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- Goliath Resources Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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Disclosures for Red Cloud, Goliath Resources Ltd., March 11, 2025
Disclosure Requirement Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Canadian Investment Regulatory Organization (CIRO). Red Cloud Securities registration as an Investment Dealer is specific to the provinces of Alberta, British Columbia, Manitoba, Ontario, Quebec, and Saskatchewan. We are registered and authorized to conduct business solely within these jurisdictions. We do not operate in or hold registration in any other regions, territories, or countries outside of these provinces. Red Cloud Securities bears no liability for any consequences arising from the use or misuse of our services, products, or information outside the registered jurisdictions. Part of Red Cloud Securities Inc.'s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services. Red Cloud Securities Inc. has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate but cannot be guaranteed. This document does not take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud Securities Inc. will not treat recipients of this document as clients by virtue of having viewed this document. Red Cloud Securities Inc. takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment decisions based on the content of this report. Company Specific Disclosure Details Company Name Ticker Symbol Disclosures Goliath Resources Ltd. TSXV:GOT 1,2,3
1. The analyst has visited the head/principal office of the issuer or has viewed its material operations. 2. The issuer paid for or reimbursed the analyst for a portion, or all of the travel expense associated with a visit. 3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services for the issuer. 4. In the last 12 months, a partner, director or officer of Red Cloud Securities Inc., or an analyst involved in the preparation of the research report has provided services other than in the normal course investment advisory or trade execution services to the issuer for remuneration. 5. An analyst who prepared or participated in the preparation of this research report has an ownership position (long or short) in, or discretion or control over an account holding, the issuer’s securities, directly or indirectly. 6. Red Cloud Securities Inc. and its affiliates collectively beneficially own 1% or more of a class of the issuer’s equity securities. 7. A partner, director, officer, employee or agent of Red Cloud Securities Inc., serves as a partner, director, officer or employee of (or in an equivalent advisory capacity to) the issuer. 8. Red Cloud Securities Inc. is a market maker in the equity of the issuer. 9. There are material conflicts of interest with Red Cloud Securities Inc. or the analyst who prepared or participated in the preparation of the research report, and the issuer. Recommendation Terminology Red Cloud Securities Inc. recommendation terminology is as follows: • BUY – expected to outperform its peer group • HOLD – expected to perform with its peer group • SELL – expected to underperform its peer group • Tender – clients are advised to tender their shares to a takeover bid • Not Rated or NA – currently restricted from publishing, or we do not yet have a rating • Under Review – our rating and target are under review pending, prior estimates and rating should be disregarded. Companies with BUY, HOLD or SELL recommendations may not have target prices associated with a recommendation. Recommendations without a target price are more speculative in nature and may be followed by “(S)” or “(Speculative)” to reflect the higher degree of risk associated with the company. Additionally, our target prices are set based on a 12-month investment horizon. Dissemination Red Cloud Securities Inc. distributes its research products simultaneously, via email, to its authorized client base. All research is then available on www.redcloudsecurities.com via login and password. Analyst Certification Any Red Cloud Securities Inc. research analyst named on this report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the companies and securities that are the subject of this report. In addition, no part of any research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.
