Powerful Dynamics At Work In Garibaldi Resources (GGI, TSX-V)
Garibaldi Resources‘ (GGI, TSX-V) sound stewardship, geological expertise, persistence and good luck have all combined to create an historic and immediate opportunity for the company and investors as the Venture shows signs of staging a strong rebound during this 3rd quarter…with nearly $5 million in working capital as reported in its most recent financials (April 30), Garibaldi is one of the few Venture-listed companies that remarkably has NOT had to do a financing during the last 4 years, thereby creating a clear runway for the share price as some important “trigger” events unfold…
Garibaldi has made excellent progress in Mexico where it holds 3 district-scale projects in robust mining areas, one of which is showing strong potential for hosting a large Gold-Copper porphyry system…Agnico-Eagle, Coeur d’Alene, AuRico Gold and Paramount Gold and Silver have each purchased proprietary Hyperspectral remote sensing data from Garibaldi which has been able to use this proven, low-cost reconnaissance exploration tool to effectively map the alteration minerals associated with epithermal and porphyry type deposits throughout the Sierra Madre…Garibaldi has 100% ownership of more than 1,000 sq. km in this prolific area of Mexico, and they’ve already demonstrated their ability to create value there through development of the Temoris Concessions and the sale of that option in 2009 to Paramount…GGI has immense potential just with its Mexican assets…
But Garibaldi’s best-kept secret at the moment, and an immediate catalyst, is its 170 sq. km Grizzly Property that adjoins the western and southern boundaries of the newly-named Sheslay Porphyry Project in northwest British Columbia…we cannot emphasize enough the importance of the Grizzly, strategically and geologically, now that Pete Bernier and his Prosper Gold (PGX.H, TSX-V) team have selected this area as the next chapter in their incredible story that began with Blackwater…Dirk Tempelman-Kluit is one of Canada’s premier geologists, and it was his expertise that allowed Richfield Ventures to make one of Canada’s biggest-ever Gold discoveries west of Ontario a few years ago…Richfield went from pennies to more than $10 a share as it was acquired for half a billion dollars by New Gold Inc. (NGD, TSX) in 2011…the level of execution displayed by Bernier’s Richfield team over such a short period at Blackwater was phenomenal, and we know because we followed that story closely from the beginning…they created immense value and also turned Blackwater into a very significant area play…there’s a good chance they’ll repeat that success at Sheslay which they’ve optioned from Firesteel Resources (FTR, TSX-V)…the implications for Garibaldi – trading at merely 8 cents a share, its working capital – could be profound…
As Bernier explained in Prosper Gold’s news release last Thursday: “Since the sale of our last company, Richfield Ventures in 2011, it has taken us two years to identify a multiple bulk-tonnage Copper-Gold target area, with historical drill confirmed discoveries that met our exploration criteria for Prosper Gold. The Sheslay project area is close to infrastructure, drill permitted and drill ready. We look forward to advancing the project in the near term.”
Bernier is not wasting any time…a field exploration program has already started, and a 5,000-metre Phase 1 drill program is slated to begin by early next month…rest assured, he and his team will move at lightening speed with amazing efficiency and precision…Tempelman-Kluit is a genius at data compilation and interpretation, and he has plenty of historical data to guide him on this project…they will drill deeper than Firesteel ever did and they will also drill right through the winter if they see fit…they have strong financial resources, personally and through their network that made fortunes on Richfield…
We’ll have much more on the potential of the Sheslay Project this week, but the fact that Bernier’s Brigade is descending on the area has suddenly made the Grizzly one of the most valuable pieces of real estate in this most northerly part of B.C.’s infamous “Golden Triangle”…largely due to its easier access, Sheslay is much more advanced from an exploration standpoint…but there’s an intimate connection between the Sheslay and the Grizzly, and the “blue sky” potential of the latter is very evident based on airborne magnetic surveys, other data, and common sense…particularly intriguing is the northwest corner of the Grizzly which features the Kaketsa Pluton, an elliptical, 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…
A Picture Tells A Thousand Words
Follow this closely…below is a map from a 2012 Grizzly technical report, showing the entire 170 sq. km Grizzly Property and the 68 sq. km Sheslay Project…4 of the 5 porphyry bodies identified to date at the Sheslay (more will likely be discovered) are clustered within a 12 sq. km target area (Star)…the Pyrrhotite Creek porphyry, according to Prosper Gold, appears to be located in a second distinct multiple target area to the southwest near the Sheslay-Grizzly boundary…meanwhile, note the 4 known alkalic porphyry Cu-Au showings (Grizzly, Kid, Ho and West Kaketsa) discovered historically through intermittent exploration within the NW corner of the Garibaldi claims…keep in mind, this entire area of the Grizzly is still very under-explored…what we do know from historical reports is that the mineralization observed at West Kaketsa (highly altered and sheared volcanic and intrusive rocks containing disseminated and fracture controlled chalcopyrite over exposed widths of at least 24 metres) resembles that at Pyrrhotite Creek…only 3 shallow holes have ever been drilled at the Grizzly – more than 3 decades ago, and in the NW corner of the property…each hole reportedly intersected potassic alteration and Copper mineralization, though no values are available and apparently none of the holes was assayed for Gold…
Imagine for a moment that you’re Pete Bernier or Dirk Tempelman-Kluit standing in the middle of the Sheslay Project…you’re thinking big, and everywhere you look to the west and the south you see a Grizzly, pardon the pun…Garibaldi is in a very enviable position, holding important pieces of this huge geological puzzle covering 240 sq. km…meanwhile, a major (Teck Resources, TCK.B, TSX) has staked a large parcel of ground right up to the southern border of the Grizzly…this whole area is right on trend with massive deposits to the south…the potential scale of this is truly immense, especially considering the players involved…Garibaldi President and CEO Steve Regoci has his hands full, first with quality assets in Mexico and now also with the Grizzly…he understands how recent events have made the Grizzly a “game changer” for GGI, and this very capable leader plans to take full advantage of the opportunity…he has also agreed to an interview in the very near future with BMR, so we look forward to exploring all dimensions of this fascinating story in the days and weeks ahead as drilling commences at Sheslay…
While Colorado Resources (CXO, TSX-V) continues to make impressive progress 60 miles to the east at its North ROK Property, investors will soon realize that there are two major plays in this part of northwestern British Columbia…as prospective as North ROK is, the Sheslay and the Grizzly are about to command some major attention…
