BullMarketRun.com

On Friday afternoon, in a gathering at a popular Vancouver restaurant, Doubleview Capital (DBV, TSX-V) President and CEO Farshad Shirvani was presented with a “Golden Hat” – a fitting gift considering that today is his 50th birthday.

Keep in mind, as well, that it was half a century ago when exploration first commenced at the Hat Property in what is now northwest British Columbia’s prolific and emerging world class Sheslay district.

The Hat’s progression over the last 2 years has been nothing short of remarkable given the challenging junior resource market conditions and the fact that this nearly 40 sq. km property, now displaying all the classic signatures of a very large Gold-rich alkalic Copper porphyry system, had only been prospected and was never drilled until mid-2013.

A grassroots discovery overlooked for many years while drilling in the general area focused exclusively on a robust set of targets about 10 km to the west-northwest (now the Star Project).

As noted previously, DBV discovery holes 8 and 11 were miraculously born during a dangerous November 2013 arctic cold snap when a proper winterized camp had not yet been constructed at the Hat (drillers were forced to flee the scene after getting to 300 m in hole 11).  The company was also out of funds after those holes, and the only reason they got drilled in the first place was because Shirvani took out a second mortgage on his home.  A courageous move and a demonstration of complete faith in his project.

Results from holes 8 and 11 produced a district staking rush, one of the few seen in Canada in recent years, and turned DBV into a 10-bagger between December 2013 and May 2014.

Hollywood could not have written a better script.

But that was just the beginning, the first few chapters of what’s evolving into an amazing story of Canadian exploration grit featuring numerous interesting players, with human nature and all the dynamics of money, power and politics on growing display.  The stakes have risen dramatically.

Each round of drilling at the Hat since 2013 has produced increasingly significant results, and the recruitment of star geoscientist Dr. Abdul Razique early this year (he was previously with Antofagasta) has been a game-changer for Doubleview and the district.

The latest maps just posted on the DBV web site confirm that the Lisle Zone is merely a southeastern expression of a much larger system of stacked NW/SE trending corridors of Gold-rich Copper porphyry mineralization covering at least 3 km x 4 km.

Do the math – the volume potential here is enormous.  And somewhere in this cooked up hydrothermal system is very possibly a high-grade starter pit, a “Golden Hat” zone if you will.

Then there’s the district as a whole – hundreds of square km featuring prominent areas of similar geological, geophysical and geochemical signatures, driven by what many believe is the “heat engine” – the Kaketsa pluton, resting mostly on Garibaldi Resources‘ (GGI, TSX-V) Grizzly Project that some geologists are speculating hosts a “mother lode” Gold-Copper deposit at Grizzly Central due to unusual features.

Low-lying Grizzly Central, an expansive area free of any rivers and lakes or other sensitive features, carries additional value beyond its deposit potential as it’s believed at this early stage to be the ideal location for critical infrastructure including a mineral processing center in the event economic deposits are proven up in the district.  Grizzly Central is essential to the overall equation for any major producer contemplating turning the Sheslay district into northwest B.C.’s newest mining camp.

And majors are watching developments closely.  BMR sources in the area confirm “an interesting group of mining-type officials” were seen flying to the Hat Property from the airport at Dease Lake a few weeks ago.

No Coincidence As Chad Norman Day Enters The Picture

On May 21, with 23 holes completed at the Hat and more assays pending from the richest hole drilled to date on the property, and with Garibaldi gearing up for first-ever drilling at the Grizzly, a stunning letter from Tahltan Central Council President Chad Day is posted on the Tahltan web site.  It’s directed at Doubleview, Garibaldi and Prosper Gold (PGX, TSX-V), and later goes viral after extensive BMR research led to our June 7 article (“Sheslay District Drama As Tahtlan Hit the ‘Reset Button’).

Chad Day’s letter was, as stated in our report, confirmation with an exclamation mark that the Hat Project, and the district as a whole, have crossed an important threshold with the growing possibility of a cluster of world class deposits spread throughout an area spanning at least 400 sq. km, on the same trend as Red Chris about 100 km to the southeast.  It was a huge stamp of value on the Hat and the Sheslay district.

Day’s letter also came shortly after he negotiated an historic agreement with Imperial Metals (III, TSX) on the Red Chris mine, which is now going into full production after receiving its final permit from the B.C.  Ministry of Energy and Mines last Thursday.  The Red Chris is the 6th mine to open in mining-friendly British Columbia since 2011.

As Day remarked in a May 30 Vancouver Sun article, “Government and industry understand that the First Nations people need to benefit when these things are built.  But with the Tahltan, it actually makes a lot of sense to partner with us because we have the capacity, we have the work ethic, we have the experience

The Lisle Zone Is Merely The Edge, Not The Central Core

The Sheslay district is very ‘pregnant’ and the Hat could easily give birth to a large family of connected zones as you can see on the map below.

Dr. Razique will explain the significance of this map in layman’s terms in an exclusive interview with BMR this coming week, but below are just 3 initial observations:

1.  The geochemical responses (circled areas) increase in intensity northwest of the Lisle Zone;

2.  The Hat is a dynamic porphyry complex featuring multiple NW trending, sub-parallel linear magnetic anomalies well correlated with hydrothermal magnetite (important) in potassic altered diorite intrusions;

3.  There is strong correlation of magnetics, IP and overall geology and alteration throughout this classic alkalic porphyry system. 

The Challenge

The above is all wonderfully encouraging – the 23 Hat drill holes and how the results have improved with each round of drilling; the maps that clearly show how the Hat model is now much more understood; and the dynamic regional prospects including a 30-km long mineralized corridor widening to the south and spanning several properties.

The symbolism of Farshad’s new “Golden Hat” is a nice touch, but investors are hungry for more drilling and more results.

Less talk, more action.

Exactly 1 month after Chad Day’s letter, it’s time for Farshad to once again show the same courage and wisdom that brought him out of a difficult spot in late 2013 and led to a new Canadian early-stage discovery.

Much is at stake – Farshad must effectively and immediately push the Hat Project forward on the ground, unlocking shareholder value, while also respecting the Tahltan Nation and making the Hat work for them as well.

Deal positively with the Tahltan and get that drill turning again – quickly.  Those are urgent priorities.

Can he make it happen?

One thing is for certain – over the last 2 years it has always been a mistake to underestimate Farshad Shirvani.

Note:  John and Jon both hold share positions in DBV and GGI.