Garibaldi Resources Corp. (GGIFF)

[Rocketred]

BMR eAlert: Garibaldi Resources (GGI, TSX-V)
July 22, 2013
Monday, July 22 Close: 9 cents

In the junior exploration business, even in this current market, a "hot" address can give a stock tremendous momentum. And when your address is zoomed in on by Pete Bernier and award-winning geologist Dirk Tempelman-Kluit, well, enough said. That's the unique situation Garibaldi Resources (GGI, TSX-V) finds itself in with its Grizzly Property. And it's a tremendous opportunity for both the company and investors because Bernier and Tempelman-Kluit are so highly respected, and this market is still rewarding discoveries.

What we believe will become the hottest exploration story of the year in British Columbia is just beginning to unfold in the Sheslay River area northwest of Telegraph Creek and about 60 miles west of Colorado Resources' (CXO, TSX-V) North ROK discovery.

The Sheslay Porphyry Project has the credibility of Bernier and Tempelman-Kluit stamped all over it. The same Richfield Ventures' team that made investors fortunes through the massive Gold-Silver discovery at Blackwater, now being developed by New Gold Inc. (NGD, TSX), has just started to tackle the highly prospective Sheslay Cu-Au system that covers nearly 70 sq. km. This is an advanced exploration project, described as "exceedingly good" by experienced geologists and prospectors we've spoken to, and one that Tempelman-Kluit should excel at. In short, it has major "blue sky" potential and we know the level of execution Bernier and his team will bring to this project. They will move with amazing precision at lightening speed.

Where does Garibaldifit into the picture? Most investors are asleep at the switch at the moment and haven't picked up on the fact that GGI, while it continues to focus on 3 outstanding district-scale projects in Mexico, also controls 100% of the 170 sq. km Grizzly Property adjoining the western and southern boundaries of the Sheslay. As we detailed in Monday's Morning Musings ( www.BullMarketRun.com), the Grizzly and the Sheslay are intimately connected geologically. In fact, the northwest corner of the Grizzly hosts the Kaketsa Pluton, a north-trending intrusion approximately 4 x 5.6 km in size and interpreted by geologists as an important “heat engine” driving mineralizing fluids – at both the Grizzly and the Sheslay.Much less exploration has occurred at the Grizzly, but it has some fabulous targets and is more than twice the size of the Sheslay. And a major (Teck) has staked ground right up to the southern border of the Grizzly.

After searching the globe for 2 years for the right project following their incredible success at Blackwater, Bernier and Tempelman-Kluit chose Sheslay River (formerly the Copper Creek Project) for their qualifying transaction for Prosper Gold (PGX.H, TSX-V). That speaks volumes about the quality of this opportunity. Andmark our words, the fact they have taken on this project is a game-changer for Garibaldi.

We recently had our boots on the ground in northwestern B.C. near Colorado'sdiscovery at Iskut, we've spoken to many geologists and prospectors, and we've reviewed every company that is active in the general area. Fact: The 3 projects with the best potential at the moment are the Sheslay, North ROK, and Castle (West Cirque, WCQ, TSX-V) - probably in that order.

Given the tie-in between the Grizzly and the Sheslay, and the level of expertise that Prosper Goldwill bring to the Sheslay Project, Garibaldi in our view is an exceptional opportunity at just 9 cents a share - essentially, its working capital position. An intense exploration program has already started at the Sheslay, with drilling underway early next month.

What's also attractive about Garibaldi is its share structure. GGI is one of the few companies on the Venture that has NOT had to do a financing over the last 4 years. Think about that for a minute. Rather remarkable, isn't it? There's no cheap paper that will come flying into the GGI market and hold or push this stock down. The runway is clear for take-off. The technical picture with Garibaldiis also extremely bullish as the stock has broken out of a 6-month horizontal channel with RSI(14) now above long-term resistance.

We want our readers to understand this very simple but important point:The Sheslay River play is going to heat up very quickly and has the potential to make investors fortunes, just as Blackwater did. Prosper Gold is expected to resume trading imminently following Exchange approval of this QT. At just 9 cents, Garibaldi provides immediate tremendous leverage given the Grizzly's strategic importance to the Sheslay Project. And Firesteel Resources (FTR, TSX-V) cannot be overlooked as it will still hold a 20% interest in the Sheslay.

Rather than followthe crowd, get in before the crowd. Bernier and Tempelman-Kluit "made it happen" at Blackwater. There's every reason to believe they'll "make it happen" at Sheslay River, much to the delight of investors - and not just Prosper Gold investors.

Happy Investing!