T#####, after a few days of reviewing the latest news concerning Garibaldi Resources Corp.'s (GGI, TSX-V) high-grade discovery at the Silver Eagle target in central Sonora State, Mexico, and following our just-completed interview with President and CEO Steve Regoci, it's becoming increasingly apparent that Garibaldi is in the process of "ramping up" Silver Eagle and the rest of Rodadero North as Phase 2 drilling commences.
The implications for GGI in the market could be exciting, to say the least, especially if targets can be linked as was the case to the northwest at Yamana Gold Inc.'s (YRI, TSX) producing Mercedes mine.
Rodadero has scale (45 sq. km) plus shallow high-grade mineralization as demonstrated by the "truth machine" - the drill rig. That's a recipe for success not only on the ground, but in the market. What the fundamentals and technicals are telling us is that GGI is poised for a potentially dramatic run.
The Garibaldi team, led in the field by the highly respected Dr. Craig Gibson, has a proven track record in Mexico - the company's proprietary hyperspectral remote sensing data allowed it to cash in big on a property in early 2009. They've "walked the walk" down there and now they're ready to do it again, this time on an even grander scale.
With Rodadero, La Patilla and of course the Grizzly in northwest B.C., GGI's "engine" is ready to switch into high gear just in time for a traditionally strong period for junior resource stocks - mid-August through September and into October.
There are only two measured Fib. resistance levels (upper 30's and around 60 cents) separating GGI from a powerful technical breakout to a new all-time high, and Rodadero could be like adding gasoline to this year's relentless fire. Garibaldi surged 47% in Q1 and another 36% in Q2 thanks to positive developments at La Patilla and the Grizzly. There is no cheap paper holding this stock down like other plays - no significant financing has been carried out in more than five years. The share structure is conducive to a healthy and robust market for this company's shares.
Rodadero: "Structural Linkage" Like Yamana's Nearby Mercedes?
Just 140 km northwest of Rodadero is Yamana's important Mercedes mine, a low sulphidation epithermal vein system, so GGI is in the right neighborhood for a major discovery of its own (90 km to the southeast of Rodadero are Agnico Eagle's La India mine and Alamos Gold's Mulatos mine).
Mercedes, which has churned out 50,000 Gold equivalent ounces through the first half of 2014, really took off from an exploration standpoint after Yamana drilled into a bonanza ore shoot, and then discovered "structural linkage" among several targets at the project. Could Garibaldi follow the same path to success at Rodadero? That's entirely possible - clearly, Garibaldi's geologists are excited about the package of targets already outlined at Rodadero, in particular Silver Eagle and the eight other targets that strike immediately to the south, southeast and east of Silver Eagle.
10 Key Points Regarding Silver Eagle & Rodadero
Very shallow high-grade mineralized system at Silver Eagle (within 50 meters of surface) - open-pit potential;
Drill holes SE-14-03 and SE-14-06 show that Silver Eagle is widening to the south - still open in all directions;
Infrastructure advantages - road and water access at Silver Eagle plus power lines running through target;
Surface sampling and drilling have confirmed hyperspectral data at Silver Eagle;
8 targets strike immediately to the south, southeast and east of Silver Eagle as defined by hyperspectral data and sampling;
High-grade Silver and Gold have been sampled at targets adjacent to Silver Eagle as reported last week;
Mineralization observed so far at Rodadero could be near-surface expression of robust system(s) at depth;
More than one potential deposit type at Rodadero;
Location makes drilling very cost effective - approximately $100 per meter;
Very limited modern exploration has been carried out at Rodadero - plenty of "blue sky" potential over a large area.
Isaac Newton's First Law of Motion is that an object in motion stays in motion until acted upon by an outside force. This concept can certainly be applied to the stock market. Garibaldi has been hugely successful because it has managed to stay in motion - on the ground and in the market - and that motion is accelerating with no outside force in sight to stop it. That puts GGI in an elite category. That's why it has performed so incredibly well over the past 12+ months.
Garibaldi continues to exhibit the perfect combination of characteristics that are found only in a small percentage of publicly traded junior resource companies:
Superb management and geological group with focus and determination
Outstanding properties/"blue sky" potential
Proven record of success
Financial strength
Highly favorable share structure
Market awareness and the ability to communicate
Yes, all of the above qualities are rarely found in a junior exploration company. These features separate the wheat from the chaff in this business, and investors who understand that point can build incredible wealth by selecting the right companies.
This sector is littered with junk - poor management, share structures that have been obliterated, etc. - but there are nonetheless exceptional opportunities at the moment. GGI is one of them, and its success on the ground is accelerating.
Regards,
The BMR Research Team
www.BullMarketRun.com
