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February 11, 2016

BMR Morning Market Musings…

In Gold we trust…bullion has exploded above $1,200 per ounce this morning in a major flight to quality…as of 8:05 am Pacific, the metal is up $48 at $1,245…Silver has surged 45 cents to $15.72…Copper is up 2 pennies at $2.03…Crude Oil is 80 cents lower at $26.65 while the U.S. Dollar Index has fallen one-third of a point to 95.47

One more day of Congressional testimony from Fed chair Janet Yellen, and Gold could be trading at $1,300 given her performance yesterday…the markets have a growing sense that the Fed (and other central banks) – run mostly by a bunch of academics, it’s worth pointing out – are confused about what to do at the moment…they also grossly underestimated the intensity of the Oil price decline and its negative consequences, along with a growing credit contraction problem in the global economy…in fairness to Yellen and her colleagues, though, there has been a fiscal “vacuum” created by a lack of leadership and common sense from Washington as the Obama administration has failed to create an overall policy framework supportive of robust private sector growth…making matters worse, China’s political leadership has increasingly lost much of its credibility on the economic file…

There are big problems elsewhere around the world, too, from Japan to Europe to even Canada where the Trudeau Liberal government has embraced climate change extremism and 1970’s big-government solutions to every challenge…monetary policies are more difficult to formulate when the political dynamics are dysfunctional around many parts of the globe…Washington is where leadership must begin, and that’s why Americans may see Donald Trump, the non-politician who understands how a capitalist economy is supposed to work, as the answer in November…it’s either that or the world follows a 74 year-old socialist from Vermont…

Longer-term U.S. debt continues to rally as investors wager that the Fed will be unable to tighten, even at a gradual pace…if it does try to increase rates, such a move would only hasten the arrival of recession and deflation…perhaps they’ll go back to full-blown QE…in any event, the benchmark 10-year U.S. Treasury yield has dropped to its lowest level since May 2013 at about 1.6%…the fall in returns from U.S. bonds is definitely bullish for Gold…the spread between 10-year and 2-year U.S. Treasuries is now at its narrowest since late 2007

Oops – Chinese Banks In Trouble

A Chinese credit crisis would see the country’s banks rack up losses 400% larger than the hit U.S. banks took during the subprime mortgage crisis, storied hedge fund manager Kyle Bass has warned in a letter to investors.  “Similar to the U.S. banking system in its approach to the Global Financial Crisis, China’s banking system has increasingly pursued excessive leverage, regulatory arbitrage, and irresponsible risk taking,” Bass, the founder of Dallas-based Hayman Capital, wrote in a letter yesterday.  “Banking system losses – which could exceed 400% of the U.S. banking losses incurred during the subprime crisis – are starting to accelerate.”

China’s banking system has grown to $34.5 trillion in assets over the past 10 years from a base of $3 trillion, wrote Bass, who is famed as one of the few major investors to correctly call the U.S. subprime housing collapse that kicked off the 2008 global financial crisis…this growth in the banking system’s asset base was fueled largely by rapid credit expansion, he argues, that helped fund the huge and often inefficient infrastructure spending programs…

National Bank Sees Ballooning Canadian Deficits

The National Bank says Canada’s fading economic prospects could put the federal government on track to run $90 billion in deficits over the Liberals’ 4-year mandate (our guess is that it could turn out to be double that amount – nearly $200 billion in new debt racked up by a Prime Minister who promised voters no more than $30 billion in additional debt and a balanced budget in the final year of his mandate)…in its report, the bank predicts the public books will sink deeper into the red due to the combination of a weakened economy and Liberal spending promises…

In today’s Morning Musings

1.  Confirmed major breakout in the TSX Gold Index – where to now?

2.  Updated charts for Richmont Mines (RIC, TSX), Claude Resources (CRJ, TSX), Integra Gold (ICG, TSX-V) and Garibaldi Resources (GGI, TSX-V)

3.  A non-resource stock that shouldn’t be overlooked in the Gold frenzy…

Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…

Comments (82)

82 Comments

  1. J. Taylor among others has it correct in this statement.
    The sharp drop in the stock market along with the “real” gold price provides reason for gold share optimism. Jay thinks hope in on the way for gold mining companies given the dramatic rise in the “real” price of gold, defined by its rise vs. the Rogers Raw Materials Index. Gold’s value relative to the cost of materials required to extract it out of the ground has risen dramatically and that should start to help efficient mining companies show much better earnings. Eventually the miners look for new deposits through the explorers via joint ventures and acquisitions.

    Comment by Lester — February 11, 2016 @ 9:21 am

  2. Calling it the ultra 1 zone

    Comment by weatheritout — February 11, 2016 @ 10:42 am

  3. Looks like news coming later today! Updated map just posted on GGI website in Grizzly section. Relief – definitely a discovery at the Grizz!

    garibaldiresources.com/i/maps/Grizzly/Grizzly-regional-target-areas-feb2016.pdf

    Comment by Maxwell — February 11, 2016 @ 10:43 am

  4. Is that going to be it for this week,or do we actually get results?I have a feeling they put that there due to pressure to put something out there for shareholders who were getting upset.
    Where are the results?!!

    Comment by robinandthe7hoods — February 11, 2016 @ 10:49 am

  5. Looks like a map update prior to same day news, robinandthehoods…that’s my take. So we probably don’t have to wait much longer. We know now that this is indeed a new deposit type.

    Comment by Jon - BMR — February 11, 2016 @ 10:52 am

  6. Ultra :
    extremely, exceedingly, excessively, immensely, especially, exceptionally

    Hope that’s a fitting name for this zone

    Comment by weatheritout — February 11, 2016 @ 10:59 am

  7. And no…I’m not an English teacher

    Comment by weatheritout — February 11, 2016 @ 10:59 am

  8. GGI – I don’t understand the benefit of updating the map the day of or before releasing results?

    Comment by George — February 11, 2016 @ 11:00 am

  9. If it’s Sameday news the volume is not telling Jon. Maybe because investors have waited so long. It is interesting though that it is indeed a different discovery than the norm in the district.

    Comment by Dan1 — February 11, 2016 @ 11:07 am

  10. Anyone care to guess why they would call it ultra 1 Zone? One guess is probably Zone 2 is probably the start of hole 5?

    Comment by Dan1 — February 11, 2016 @ 11:11 am

  11. GGI, the best bang for the buck is gold as the world is a wash with base metals.

    Comment by Lester — February 11, 2016 @ 11:17 am

  12. I have never heard of an ultra deposit.

    Comment by Dan1 — February 11, 2016 @ 11:20 am

  13. I agree Dan….the volume is giving no hint to a discovery at hand….

    Comment by weatheritout — February 11, 2016 @ 11:22 am

  14. That’s just a name they’ve obviously given the zone, Dan1. Not the deposit type. The zone I’m assuming covers the area from hole 1 to hole 4, anyway, so if they’ve tied this together as a mineralized zone you’re looking at lot of potential tonnage given the 600 m between holes 3 and 4, and the 200-m from hole 1 to hole 3. Do the math.

    Comment by Jon - BMR — February 11, 2016 @ 11:23 am

  15. Selloff Friday is tomorrow heading into a long weekend where nobody holds there stock any more.They had better have something that rivals graphite for ZEN or nickel for NOT, or we might see a selloff instead of a rally.
    I can’t see anyone releasing a PR after hours today or tomorrow.Not if they have something that matters.It’s too late in the week.God,I hope he doesn’t screw this up.
    I’d like to take a chance and buy more,buy I have no faith Regoci won’t mess this up.We can only hope it’s the next big discovery since ZEN.
    The reason I whine is because he had all the ingredients to do a Murray Pezim and run this through the roof,even if the results would have ended up being mediocre.

    Comment by robinandthe7hoods — February 11, 2016 @ 11:25 am

  16. Sorry Jon. Yes, it’s an ultra Zone not deposit but why would they name it ultra Zone. Ultra usually means something extraordinary or very rich.

    Comment by Dan1 — February 11, 2016 @ 11:42 am

  17. GGI – volume picking up now.

    Comment by Dan1 — February 11, 2016 @ 11:45 am

  18. “Ultra” may refer to its purity. In which case this would be huge regardless. Jon, have you ruled out graphite as a possibility here??

    Comment by Foz1971 — February 11, 2016 @ 12:24 pm

  19. Yes, that thought came to my mind – Ultra purity graphite.

    Comment by Dan1 — February 11, 2016 @ 12:29 pm

  20. Actually Jon, I would like to throw in for consideration the possibility of a new PGM (Platinum Group Metal) deposit. These are mined from (usually) mafic or ultra-mafic rock. We also know (I believe) there have been forceful processes from the Heat Engine that have pushed fluid i.e., metal-rich magma from the earth’s crust. Thoughts?

    Comment by Foz1971 — February 11, 2016 @ 12:29 pm

  21. If it’s ultramafic, that would be the first time ultramafic has been found in the district, Fox1971…can’t rule it out as this is obviously a different system……that would open the door for a lot of different things including the potential for PGM’s, gold, other mineralization including nickel of course…

    Comment by Jon - BMR — February 11, 2016 @ 12:38 pm

  22. GGI – I dont know it its ultra, premium, synthetic….as long as its good grade and tonnage and it moves the stock…

    Comment by George — February 11, 2016 @ 12:39 pm

  23. If it has a high degree of purity (whatever it is) and you consider the large area (what we can tell anyway based on 5 holes) then this will be huge for the company, its stock, shareholders and the Sheslay area. Time to spit it out..

    Comment by Foz1971 — February 11, 2016 @ 12:40 pm

  24. Thank you Jon, yes nickel too good point. wow.

    Comment by Foz1971 — February 11, 2016 @ 12:41 pm

  25. Don’t rule out Chromite either

    Comment by Dan1 — February 11, 2016 @ 12:42 pm

  26. Deposits in which the ore minerals have crystallized directly
    from a magma.
    Generally found in mafic or ultramafic igneous rocks, typically
    layered complexes.
    Three major deposit types:
    i) Nickel-Copper Deposits
    ii) Chromite Deposits
    iii) Platinum Group Elements Deposits

    Comment by Dan1 — February 11, 2016 @ 12:45 pm

  27. GGI , it’s time to get off the potty , either they have something of value or this is a bunch of over blown hype .

    Comment by Lester — February 11, 2016 @ 1:15 pm

  28. What boggles my mind is why they just updated the website stating new district discovery and deposit type but not release results. Man, are they ever doing things differently.

    Comment by Dan1 — February 11, 2016 @ 1:20 pm

  29. Yes it is, Lester, also time for DBV to get off the potty with the rest of hole 23 (1 year now).

    Comment by Jon - BMR — February 11, 2016 @ 1:21 pm

  30. Jon – I am so confused what is happening with GGI. I don’t think I have seen this before.

    Comment by George — February 11, 2016 @ 1:25 pm

  31. Let’s put it this way. Regoci’s credibility is definitely on the line with this one. He had better deliver, if not it will be disastrous for him and GGI after all the promotion before Christmas and the long delay.

    Comment by Dan1 — February 11, 2016 @ 1:33 pm

  32. I’ll gladly be GIG’s investor relations for stock options…put a sentence a week on the website…I could fit that in my schedule

    Comment by weatheritout — February 11, 2016 @ 1:39 pm

  33. The market has no excitement for this play and in all honesty it doesn’t seem like Regoci is all that excited either.

    Comment by weatheritout — February 11, 2016 @ 1:44 pm

  34. Jon, is it possible you can reach out to Regoci on behalf of your subscribers? If they were able to put that up on their website today then they should be able to at least give us a timeline on the results.

    Comment by Dan1 — February 11, 2016 @ 1:52 pm

  35. GGI….had been stringing investors along since the series of news releases in the fall….then nothing…except sentences at a time on their website. We need a larger company to come in and take over the whole Sheslay district and get multiple drills turning. No word of a lie its going to the beginning of next winter when we get results from spring drilling. Ridiculous…rant done

    Comment by weatheritout — February 11, 2016 @ 1:54 pm

  36. Jon , not to mention the DBV results from hole #24 and #25 . An update as to what’s happening on site at the Hat would help clear things up.

    Comment by Lester — February 11, 2016 @ 1:57 pm

  37. Jon do you have any contact with Regoci? Having past interviews and all with him any chance of getting the cause of delays now? In Regoci’s year end message for his shareholders he asked if we could increase visibility for the company by introducing to others. Hard to do that with the communication this company has. Try to get an update if you can. I’m losing faith on this play.

    Comment by weatheritout — February 11, 2016 @ 1:59 pm

  38. I mentioned a while back when I googled all of the pics I could find of that black type core that it could be Nickel? wouldn’t that be something, EQT looking for Nickel next to Voiseys Bay and GGI finds it on accident where you would never think to look… go fiqure…

    Comment by GREGH — February 11, 2016 @ 1:59 pm

  39. The troops are getting restless lol……hold the line……hold the line
    I just did an all out run on the treadmill…..helped a bit

    Comment by weatheritout — February 11, 2016 @ 2:05 pm

  40. The week isn’t over yet..

    Comment by Laddy — February 11, 2016 @ 2:09 pm

  41. I don’t know why everyone is in panic mode over GGI. We know that they have found something of value. Lets just wait for the good news from Regoci. Were all in the same boat here. Maybe we wait till next week. Big deal. The wait will be worth it.

    Comment by pole — February 11, 2016 @ 2:18 pm

  42. Next week hahhahhahahaha …. that is a good one pole

    Comment by weatheritout — February 11, 2016 @ 2:23 pm

  43. That’s the only thing that makes me a little nervous pole…..if everyone knows that GGI has such a good discovery, and they now have posted that on their website….why do we sit at .13 with very little volume. Believe me…..I am one heck of a large shareholder and have sold 0 shares but something just seems odd. I really hope it is a case where the market just does not see the opportunity

    Comment by weatheritout — February 11, 2016 @ 2:25 pm

  44. I agree pole!

    Comment by Kalkan — February 11, 2016 @ 2:28 pm

  45. Next week I’m hoping we hear about high-grade at Rodadero…..now, time for the Grizzly.

    Comment by Jon - BMR — February 11, 2016 @ 2:40 pm

  46. Jon, you must be pretty confident we hear from GGI tomorrow. I hope you are right and Rodadero to follow I do know that from speaking to IR

    Comment by Dan1 — February 11, 2016 @ 2:44 pm

  47. I’m very confident we’ll get something today, Dan1…and next week, too.

    Comment by Jon - BMR — February 11, 2016 @ 2:48 pm

  48. Yep news is out.

    Comment by Dan1 — February 11, 2016 @ 3:01 pm

  49. magnesium + scandium – news out. Mg is in most ultra mafic rock though

    Comment by david — February 11, 2016 @ 3:02 pm

  50. Well that’s a bit of a dud….on to Rodadero…guess that’s why not much excitement on grizzly

    Comment by weatheritout — February 11, 2016 @ 3:38 pm

  51. BMR – please tell me these results are good because I am sweating right now.

    Comment by George — February 11, 2016 @ 4:12 pm

  52. No idea if this is good or not, I know almost nothing about magnesium and scandium. Are these good grades?

    Comment by Danny — February 11, 2016 @ 4:13 pm

  53. Scandium metal 99.9% ~ $15000US / kg

    Scandium oxide > 99.5% ~ $4200 / kg.

    Prices as of dec31, 2015 according to mineralprices.com

    Yep … I’m excited.

    Comment by Treb — February 11, 2016 @ 4:19 pm

  54. Jon, I know its still early in the game but how valuable would a scandium deposit be for GGI.

    Comment by pole — February 11, 2016 @ 4:24 pm

  55. 206-m section in GC-15-03, consisting of high-grade magnesium (grades ranging between 21.7% and 23.5% Mg) and elevated nickel (ranging between 0.11% and 0.15% Ni). This structure is preceded by consistent, highly elevated scandium at the top of each hole including 54 meters grading 34 g/t in GC-15-03.

    How valuable are these grades of magnesium and scandium? Rare earth minerals? I don’t know a thing about rare earth. No high grade gold, hoping Rodadero/La Patilla high grade gold comes quickly and in abundance because gold is hot right now…

    Comment by ConcernedCitizen — February 11, 2016 @ 4:32 pm

  56. read up on scandium boys and girls.. and quit whining now:) ??? where did I see a list of companies whose stocks were rising quickly.. hmmmmm cant remember but what were their main mining focus??????????????? wait for it…..

    SCANDIUM!!!!!! this could be very big news dudes and dudettes!!!! now if only NHC PHM CXV would trade like should… but I digress

    Comment by Jeremy — February 11, 2016 @ 4:45 pm

  57. This is absolutely fascinating from a geological point of view and also from a valuation standpoint. Will elaborate on this in detail this evening. Conducting an interview with Regoci, should have it up tonight (audio).

    What GGI has hit is truly unique for the area, and perhaps beyond given the scandium-magnesium oxide combination. Hole 5, outside the Ultra 1 Zone, but wow…250 meters of scandium, that is highly interesting. So much to look at here.

    GGI has turned the district into a jewelry box.

    Comment by Jon - BMR — February 11, 2016 @ 4:46 pm

  58. Given the pervasiveness and grades of scandium in GC-15-05, and similar grades above the black unit in GC-15-01, GC-15-03 and GC-15-04 to the west, Garibaldi geologists will be investigating the potential for higher concentrations of this important element at Grizzly Central. Five out of nine surface samples taken along a hill 50-200 meters south of GC-15-04 returned scandium values grading between 34 g/t and 45 g/t while the other four samples assayed between 20 g/t and 25 g/t Sc.

    Can anyone translate the value of 30 g/t Sc to how many g’s of gold that is, value wise?

    Comment by ConcernedCitizen — February 11, 2016 @ 5:13 pm

  59. Depends on its purity. Difficult to glean anything from the nr other than there’s potentially a lot of it.

    Comment by Treb — February 11, 2016 @ 5:21 pm

  60. This magnesium scandium may be good, but not what the market was expecting so will probably see a sell off tomorrow, hope not but probably will….

    Comment by GREGH — February 11, 2016 @ 5:35 pm

  61. Sort of quiet on here tonight, is everyone in shock?

    Comment by GREGH — February 11, 2016 @ 5:41 pm

  62. GREGH – do you own GGI and why do you see a selloff?

    Comment by George — February 11, 2016 @ 5:47 pm

  63. Greg, the worst thing that GGI could have come up with is 200 meters of 0.60 CuEq because that simply doesn’t have the value that this deposit has for Garibaldi, when you break things down to metal value per tonne…there is enormous potential value here, as Regoci just pointed out in our interview, for a variety of reasons…Treb is correct in saying purity is the key but the early indications are here that Kaketsa may have delivered a superior product…the fact the nickel, for example, is not bound up in silicates is a key point, and Regoci was talking very encouragingly about anticipating excellent numbers on the magnesium oxide…the size of this is huge…and it appears to be a LAYERED intrusive, meaning that there could be other layers of even higher grade zones, or other metals (like PGM or gold) associated with this…

    The Ultra 1 Zone brings a whole new twist to the district – good not only for GGI, but everyone else….every new deposit is critical and this one is no exception – it also proves that anything is possible in the district from a mineral standpoint. Everywhere you drill there could be something.

    Most companies today aren’t even drilling. Here’s a company that goes into a 300 sq. km property never previously drilled, puts a tiny drill bit into the ground on 5 widely spaced holes, covering only 1% of the entire land package, and delivers a valuable deposit. What are the odds of that happening, and what does that say about the other 99% of the land package? Think about it.

    The scandium at the top of the hole is one of the keys to this because it gives you a potential valuable by-product to go along with the magnesium oxide and perhaps the nickel. Could make a big difference in the economics.

    A couple other points about the Scandium. 4-acid digestion was used for assays. Regoci plans on assaying again using a fusion method which some say is more accurate for scandium, and usually delivers grades 30 to 50% higher. Also, the 45 g/t scandium in the surface sampling is interesting because in an environment with oxygen, scandium values typically decrease. I’ve done some checking this afternoon, haven’t found a single company produce a 250 m interval of scandium at those grades….those grades aren’t high enough for a primary scandium deposit, of course, but they’re damn interesting and suggest that something very peculiar could be going on in the east. That hole was drilled on top of a ridge, 200 m above the Grizzly Central valley……highest scandium grades right at the bottom of the hole…interesting….

    Just a gut feeling I have, but I suspect Regoci has some Mexico surprises he’s going to deliver next week to capture the Gold/Silver wave right now….followed by more news from the Grizzly….as Mexico is rolled out and everything sinks in with the Grizzly, watch out.

    Comment by Jon - BMR — February 11, 2016 @ 5:58 pm

  64. Jon
    Like I said above ,not what the market was expecting, of course maybe it wont sell off since really no one has been paying any attention to the grizzly anyway except us that follow BMR, so I guess if there is a sell off it will be all of us selling…

    Comment by GREGH — February 11, 2016 @ 6:01 pm

  65. BMR – so this means the stock will move tomorrow to the upside as expected?

    Comment by George — February 11, 2016 @ 6:06 pm

  66. George, as an investor I’d love to see some people who haven’t picked up on the significance of this to get sucked out of their shares tomorrow…..and then watch in horror as the market catches on next week and Regoci ups the ante with Gold and Silver in Mexico and comes right back with some crazy magnesium oxide grades from the Ultra 1 Zone….I’d be very happy with that scenario.

    Comment by Jon - BMR — February 11, 2016 @ 6:26 pm

  67. I’ll be holding for Rodadero…and seeing what else comes off Grizzly. As a side note

    The Gold Report: At the annual Prospectors and Developers Association of Canada (PDAC) convention in March, scandium was probably the most talked about metal after gold.

    That’s their quote not mine….interesting

    Comment by weatheritout — February 11, 2016 @ 6:27 pm

  68. Looks like the Ni + Mg + St values far exceed the value per tonne of a typical porphyry deposit? Plus La Patilla and Rodadero high grade silver and gold results next week? Is that a recipe for a sell off, GREGH? I for one am holding, I didn’t waste months waiting for these encouraging results to dump and gamble to buy back lower, especially with Mexico news around the corner to take advantage of the gold mania. jmo

    Comment by ConcernedCitizen — February 11, 2016 @ 6:29 pm

  69. SCY – going thru their NR’s about grades – they are measured in PPM and 275 – 325 is the avg over 20M. This NR is not an easy sell to routine investors. Gonna need to access Kaisers info on scandium to get an understanding

    Comment by david — February 11, 2016 @ 6:44 pm

  70. CC I guess we will find out tomorrow , won’t we?

    Comment by GREGH — February 11, 2016 @ 6:50 pm

  71. John Kaiser is the scandium expert. Do your research at kaiserbottomfish.com On the home page go to Open Links and click Scandium Research Center. The most interesting and best information in my opinion is to follow the developing story of Scandium International Mining (SCY) featured at BMR. Go to General Release Schedule and scroll down to read all the free commentary on Scandium International Mining which contains excellent scandium info of a general nature in addition to SCY info.
    Also click on Blog and read yesterdays scandium commentary which contains game changing news from the aviation industry regarding adopting carbon dioxide emissions standards which will massively benefit scandium.
    It’s all interesting, enjoyable reading and you will all be scandium experts after reading the commentary!

    Comment by John — February 11, 2016 @ 7:01 pm

  72. Don’t know what the panic is, we’ve known for weeks this wasn’t some massive gold deposit, really, 5 holes, 300 sq kms, a potpourri of minerals, very interesting, and to resume drilling, oh ya, Mexico next week,lots to come, look forward to the interview.good stuff Jon.

    Comment by Laddy — February 11, 2016 @ 7:07 pm

  73. BMR – this is not even funny or a joke but will you be covering any losses on GGI after touting aggressive buys and immediate actionable buys and now you are saying we are going to get a sell off and trying to spin in positively? I am so frustrated.

    Comment by George — February 11, 2016 @ 7:10 pm

  74. David- g/ton and ppm are the same, I think….1 ton= 1000kg = 1,000,000 g

    Comment by johnz — February 11, 2016 @ 7:44 pm

  75. George, you misquoted me – I didn’t say “we are going to get a sell-off”. There’s no reason for one, but my point was that if some investors don’t see the significance of this and choose to part with their shares (for every seller there’s a buyer), whether the stock is up or down, I’m viewing that as an opportunity because the big picture is that between what’s developing at the Grizzly and in Mexico, GGI is really well positioned for a strong last half of February. One day up or down makes no difference to me. I’m focused on the broader trend and how this stock can deliver great returns when the company does the right things over the coming weeks and months, especially in a rising precious metals environment. Could be a fantastic day for GGI tomorrow, I have no idea. There’s a lot happening with this company right now and I’m more focused on the rest of the month and how things evolve at both Grizzly and in Mexico. The opportunity is huge at the moment if Garibaldi plays its cards right. I trust that Regoci will.

    Comment by Jon - BMR — February 11, 2016 @ 7:47 pm

  76. I agree with Jon. Good time for the “weak hands” to throw in the towel and the rest of us to enjoy the ride.

    Comment by pole — February 11, 2016 @ 7:59 pm

  77. johnz – your right – thx. so we have 1/10 the grade of SCY at this point. processing + refining play a huge part I suspect in making money outta this as well. going to take some time to figure out what’s there, which explains the delays we have had getting results. its new to BC labs and geos I suspect.

    Comment by david — February 11, 2016 @ 8:01 pm

  78. Apples and oranges, David. SCY of course has a primary Scandium deposit. Scandium as a by-product would potentially be hugely valuable with this kind of a deposit for GGI, and it’s not mixed in with the magnesium oxide or nickel – it’s separate and near-surface. Testing will determine how easy it may be to recover. The 2nd part of the equation is the potential for even higher concentrations of Scandium elsewhere at Grizzly Central, and what that may mean. I suspect the fusion assaying process, as used by SCY, would take the SC grade to around 50 g/t in the Ultra 1 Zone. That’s really interesting as an important by-product.

    Comment by Jon - BMR — February 11, 2016 @ 8:11 pm

  79. “Magnesium is $2/kg and copper is $4.5/kg. By my calculation 22% magnesium is the equivalent of 9.78% copper. This is found over a 206m interval. No wonder they are excited by hole 3.”

    Read on Stockhouse, is this correct? That’s huge right if correct, anyone?

    Comment by ConcernedCitizen — February 11, 2016 @ 8:17 pm

  80. Looks right to me, CC, though of course it’s all about recovery – in both situations, actually. Though it’s very early in the game here, the theoretical metal value per tonne of the Ultra 1 Zone is wild. We’ll see where they can take this on the magnesium oxide part. The other important thing here is, you now have 3 deposits in the district. Even though one is a different type of deposit, there would undoubtedly be some synergies in combining all of them where possible in a mining scenario.

    Comment by Jon - BMR — February 11, 2016 @ 8:28 pm

  81. Thanks Jon, so even though it’s a different type of deposit, the values are 10 to 30 times higher than in the rest of the district… Yeah I know it’s apples and oranges, but imagine DBV/PGX drilling 200 meters of 9.75% copper equivalent in one hole… We shall see how investors react…

    Comment by ConcernedCitizen — February 11, 2016 @ 10:03 pm

  82. George
    yes I own a lot of GGI and have been holding for a long time, bought mainly for the Grizzly as most others here did too, was pleasantly surprised with the Mexico results, but mainly bought for the Grizzly…. that’s why I think there could be some selling tomorrow as this is not what investors expected…. I hope I am wrong and that people will hold until this is all sorted out and maybe we get some more good news from Mexico.. I will be holding myself until this is all sorted out hope that is a good move.

    Comment by GREGH — February 11, 2016 @ 10:09 pm

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