8:30 pm Pacific, exclusive audio interview
It’s rather ironic that on a day when Gold skyrocketed $50 an ounce to a new 52-week high, a significant new grassroots drilling discovery of thick intersections of high-grade Magnesium, Scandium and Nickel – minerals never found before in northwest British Columbia’s emerging world class Sheslay district – was reported by Garibaldi Resources (GGI, TSX-V).
Garibaldi has plenty of Gold and Silver in Mexico to spread around for investors, but today they revealed a large-scale system in a “Kaketsa multi-element ultramafic” – a new deposit type and an apparent third deposit on the third property drilled in a district where Copper-Gold porphyry has so far been the only game in town. What this suggests is that anything is possible in this geologically endowed area, and that bodes well not only for Garibaldi as the largest landholder but Doubleview Capital (DBV, TSX-V), Prosper Gold (PGX, TSV-V) and others who are active in the region.
Garibaldi made the Association For Mineral Exploration British Columbia look good today – it was just last summer, not long after Doubleview reported its best hole ever at the Hat Project, that AMEBC referred to the region as the “#1 greenfield district” in the entire province.
Not many juniors are even drilling these days in Canada, let alone making discoveries on just the first few holes ever drilled on a whopping 300 sq. km property. Garibaldi’s “Ultra 1 Zone” features a thick, homogenous “black unit” that was intersected in 3 widely-spaced holes and returned Magnesium grades ranging between 21.7% and 23.5% Mg, and Nickel values between 0.11% and 0.15%. Each of the holes ended in the black unit with GC-15–03 continuing in it for 206 meters.
The Nickel is believed to be associated with sulfides, based on an extraction test, while metallurgical testing is in progress to determine the potential for high purity magnesium oxide.
The Ultra 1 Zone (“MSN Zone” may have worked, too, as an acronym for Magnesium-Scandium-Nickel) is open in multiple directions and is interpreted through geophysics to expand significantly toward the south in terms of distance, width and depth. A fully winterized camp allows for the immediate continuation of Garibaldi’s program.
Click on the arrow to listen to the first part of our interview late this afternoon with GGI President and CEO Steve Regoci:
Company geologists believe that this first ultramafic package discovered in the district could be a layered intrusive with the potential to host even higher grade zones along with other types of mineralization including PGM’s and Gold which were detected above background levels in some of the core samples. Interestingly, consistent and highly elevated Scandium was intersected above the black unit holes including over 54 meters @ 34 g/t Sc in GC-15–03.
Further to the east, the 5th hole – from the top to the bottom at 253 meters – hit similar grades of Scandium. It was drilled toward the east, and may suggest there could be some surprises in the Stuhini volcanics in that direction.
More on the Magnesium and the Scandium in this second part of our discussion with Regoci – click on the arrow:
There are many facets to these fascinating discoveries at Grizzly Central, and we’ll be exploring them in the days ahead.
Note: John and Jon both hold share positions in GGI. Jon also holds a share position in DBV.
206 meters of 9.75% copper equivalent in just one hole, not counting the nickel and scandium values… holes end in mineralization… sounds good to me.
Comment by ConcernedCitizen — February 11, 2016 @ 10:09 pm
Jon
who is booner155 on Stockhouse and is he or she a subscriber? lots of accusations against you…
Comment by GREGH — February 11, 2016 @ 10:40 pm
This guy booner is a sad case, all his posts on stockhouse are negative. He must have a dreadful life,
Comment by Danny — February 11, 2016 @ 11:14 pm
No worries, Danny, Greg. We know exactly who he is, and he does have a dreadful life. He is certainly not a BMR subscriber and he was banned forever from posting on the BMR site a couple of years ago for very insulting comments against others on this board (repeated behavior). You might remember him. Just a really bad actor with emotional/psychological problems, and too much time on his hands. Not surprised he has popped up somewhere,
Comment by Jon - BMR — February 11, 2016 @ 11:33 pm
I gotta say,I’m very happy with this PR.The potential is enormous and they are just scratching the surface.I can see why it took so long to get these results.There are layers to the results,not just the property.They aren’t quite sure what they have here.
This story may just take the market by storm at some point.That was one of the most interesting PRs I’ve read in a long time,and extremely well written.
Jon,all your hard work may end up paying off a lot more than you ever thought over the next few months and possibly years.We may just have the next big runner as this goes along.Good job!I couldn’t be more pleased and intrigued by the potential here.
This is the type of PR that began the stories for NOT and ZEN,and we all know how they ran.
Comment by robinandthe7hoods — February 12, 2016 @ 3:47 am
GGI – Let’s hope he can keep the news coming and keep the momentum going.
Comment by George — February 12, 2016 @ 5:15 am
Wow, well I have had a chance to absorb GGI news. What they found is remarkable and this was really unexpected for me. Interested in hearing about the magnesium oxide levels – important to the value of this find. Jon, as noted in your response to me yesterday (post 21) we have “ultramafic” and it really does open doors so to speak to a wide array of mineralization. Smart money will support this play (weak hands taken out) – clearly the tip of the iceburg. This is definitely not a dud as some feared, it is a genuine discovery with significant potential for more. I only wish I could speed it up! The nice thing is that they have more than one property in play and I expect to hear about Mexico soon – we might just get our steady news flow yet.
Comment by Foz1971 — February 12, 2016 @ 5:30 am
I agree, George. I believe that will be the key. Things are happening on multiple fronts and a nice update on Mexico next week could be very positive in this gold-silver market right now, then a follow-up on the Grizzly. The chemical composition of the Ultra 1 Zone is critical, along with the fact it could be a layered intrusive. Fascinating find.
Comment by Jon - BMR — February 12, 2016 @ 5:33 am
Jon, any insight as to why the Mg was reported in percentages instead of g/ton?
Comment by Treb — February 12, 2016 @ 5:34 am
I suspect next GGI news release on Grizzly (and based on your interview) will identify where they drill next – great clues so far re: pathfinder elements I am betting…..could be something special as we peel the layers back…nickel, gold, pgm, etc.
Comment by Foz1971 — February 12, 2016 @ 5:43 am
Jon, you expect an update on Mexico next week. Did Regoci give you a hint that we should hear something next week?
Comment by Dan1 — February 12, 2016 @ 5:49 am
That’s how Mg is reported, Treb. What we can expect to see going forward is a magnesium oxide percentage. Purity levels, recovery optimization – those are going to key aspects to this, and the early feeling is that Kaketsa has cooked up something quite clean and unique. We’ll see what the next lab results have to say. With regard to the nickel, for example, importantly it’s not bound up in silicates which is a recovery issue for nickel. These ultramafic packages share some similarities but they’re also each very different in terms of their chemical composition, and that can impact a lot of things.
Comment by Jon - BMR — February 12, 2016 @ 5:53 am
I think Regoci has been itching to get news out on Mexico for a while now, Dan1, even more so now with gold and silver doing what they’re doing, so yes, it wouldn’t surprise me if he hits hard on that starting next week. Yesterday’s news indicated there are crews on the ground at the moment at Rodadero, so I’m taking that as a “heads up”. I think this time he’ll really get into some strong news flow as there’s obviously quite a bit more to come on the Grizzly, then all this stuff going on in Mexico.
Comment by Jon - BMR — February 12, 2016 @ 6:01 am
There is no sell off. Investor know the discovery is significant and with Mexico looming…..well
Comment by Dan1 — February 12, 2016 @ 6:33 am
BMR – yesterday you said “…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…”. Personally as an investor I would rather just see the share price go up. I havent been waiting buy aggressively and waiting for huge runs ups to happen as per you to open up down 23% today and feel good about it. This is jmo.
Comment by George — February 12, 2016 @ 6:35 am
GGI – I cant believe this.
Comment by George — February 12, 2016 @ 6:36 am
EQT/GGI – So I lost more than my half my investment in EQT and now im down large on GGI. But apparently as an investor I should feel good about todays move….?
Comment by George — February 12, 2016 @ 6:39 am
George, my general philosophy regarding the market is that you make money when you buy on weakness, not when you chase. WRR came out with great results last week, ridiculously sold off to 4.5 cents within an hour, but those who accumulated on the weakness have done very well with the stock back at 7 now. Any news – good or bad – is always a risk event for any company. No matter what, there are always people when their fingers on the sell button after news which they see as a liquidity event. That creates opportunities for savvy buyers who look at the bigger picture and see the real value.
Comment by Jon - BMR — February 12, 2016 @ 6:46 am
Hey we were all hoping for a good gold strike but I do see the potential here. I’m willing to give them time to play it out and also to see what comes out of Mexico.
Comment by weatheritout — February 12, 2016 @ 6:48 am
Sure, great if you are a buyer today of GGI and if it goes up from here, no justice for those holding at an average cost of $0.14 though. I guess we continue and hold and wait and see what this brings…
Comment by George — February 12, 2016 @ 6:52 am
GGI – I wish I sold last week at $0.13
Comment by George — February 12, 2016 @ 7:10 am
correction: i wish I sold in november at 0.17
Comment by George — February 12, 2016 @ 7:10 am
Great coverage by the BMR team and what a surprise discovery. Now more eyes will be on GGI which is to our benefit. Hope GGI can now start coming forth with more timely NRs.
.
Comment by charleybarley — February 12, 2016 @ 8:30 am
George , the pump was done and they raised $800,000 to go explore that huge Grizzly property..
Comment by Lester — February 12, 2016 @ 8:55 am
That’s of course what certain DBV shareholders would like to think, Lester, given their silly obsession with GGI these last several months. GGI drills, DBV doesn’t, GGI raises money, DBV doesn’t…DBV shareholders get frustrated, so they attack GGI. Does that make sense? I love the Hat, I’m a DBV shareholder too, but DBV shareholders attacking GGI doesn’t make things better for DBV. What GGI has found at the Grizzly is not only going to help GGI but the entire district, and they’re in a very good position to advance it.
Comment by Jon - BMR — February 12, 2016 @ 9:06 am
I obviously own GGI and am quite upset about the share price action…but I have noticed and pointed it out here for some reason certain DBV shareholders like to attack GGI.
Comment by George — February 12, 2016 @ 10:01 am
When is DBV gonna release results? I heard last week of january/first week of february, but nothing happened.
I own both DBV and GGI and am underwater on both, I refuse to average down and sink even more money in these stocks.
Comment by ConcernedCitizen — February 12, 2016 @ 10:35 am
CC , I have to agree the continued delays are truly frustrating but both of these companies are making progress albeit slower than what we want . I believe money is always the main problem or the lack of with these little companies . Everyone expects drilling and drill results but if they don’t have the cash at hand at the moment things are on hold . It is evident that both GGI and DBV are now able to proceed with their plans so they are far from dead. DBV are to resume drilling hole #25 and I hope they go to 800 meters or more.
Comment by Lester — February 12, 2016 @ 11:21 am
Well,Jon,that is just not true.DBV is light years ahead of GGI in the drilling,and would be light years ahead in the stock price if Chad Day hadn’t have shown up to put a stop to everything.
Imo,if Shirvani PRs that they have free drills to work 40-50 holes on the property through a probable,again imo,deal with the Tahltan,and they release the last hole results,they will move significantly up in share price,as Shirvani has become adept at promoting his company and will know how to pump his stock to take advantage of these two news events.
GGI now has a huge opportunity with this find,but at this stage,DBV is still the most advanced project and company.Once the snows go so the drilling begins,hopefully both companies can take that next step in share price
Comment by robinandthe7hoods — February 12, 2016 @ 4:00 pm