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4:00 am Pacific

Exploration.  Discovery.  Wealth.  Those 3 words constitute the Prosper Gold Corp. (PGX, TSX-V) brand, and following yesterday’s close the company delivered on the brand with results from its first 3 drill holes at the Sheslay Cu-Au Porphyry Project in northwest British Columbia.  Meanwhile, next door at the Grizzly, Garibaldi Resources (GGI, TSX-V) has boots on the ground and reported very intriguing preliminary information regarding a just-completed airborne survey over the northwestern portion of its large land package (see map below) contiguous to the western and southern borders of the Sheslay.  This under-exploited region of the province is indeed emerging as an important new discovery area.

PGX’s Sheslay is displaying consistency of mineralization and the kinds of widths and grades that have helped build massive deposits to the southeast.  Importantly, Prosper Gold demonstrated yesterday that mineralization continues to depth at the Sheslay – a primary goal of the initial round of drilling after the shallow nature of Firesteel Resources‘ (FTR, TSX-V) 23 holes drilled at the Star target between 2004 and 2007.  In fact, results from Prosper Gold’s next 3 holes (S027 through S029) will be particularly revealing since they were drilled even deeper than the first 3.   S027 could in fact be a “barnburner” as it intercepted Copper-bearing porphyry mineralization from the surface to the bottom of the hole at 598 metres.

To put things into perspective, reserve grades at Imperial Metals‘ (III, TSX) Red Chris deposit – slated to go into production next year with robust economics – are 0.36% Cu and 0.27 g/t Au (over 300 million tonnes).  Red Chris also has 1.2 billion tonnes of measured and indicated resources grading 0.33% Cu and 0.33 g/t Au.

Prosper Gold’s first 3 holes intersected 312 m grading 0.37% Cu and 0.24 g/t Au (S024); 269 m grading 0.42% Cu and 0.20 g/t Au (S025); and 263 m grading 0.35% Cu and 0.15 g/t Au.  Those are nice, long intersections – exactly what one wants to see in a productive system.

“It’s got great geology,” Dr. Dirk Tempelman-Kluit told BMR in our extensive interview with him.  “We’ve got the right rocks.  We’ve got the right numbers in them.  And now that I’ve seen the core, it’s got the right system there.  It’s got great alteration, highly fractured.  There’s been a lot of fluid throughput.  The rocks have been completely effected by that, they’ve been completely changed by that.  They don’t look like the original rocks anymore.  Every alteration package that is classic in these situations we see there.  Every kind of veining pattern.  Multiple generations of veins, multiple stages of alteration superimposed on each other.  And then the metal to go with it.  I like it because it has all the earmarks.”

Pete Bernier (left) and Dirk Tempelman-Kluit (right) were the 2011 AME BC Award Recipients for Excellence in Prospecting and Mineral Exploration.

Nailing down a porphyry Cu-Au deposit is never an easy challenge.  But if anyone can do it in this part of B.C., it’s Tempelman-Kluit – an award-winning geologist who unlocked the secrets of the multi-million ounce Blackwater deposit in central B.C., allowing Richfield Ventures to get taken out by New Gold Inc. (NGD, TSX) for half a billion dollars in 2011.  At his side again, of course, is Pete Bernier, President and CEO of Prosper Gold who understands the business/market side of the equation and is steering this ship with the same incredible precision he displayed with Richfield.

Meanwhile, Garibaldi also made some noise after the market close yesterday.  GGI has expanded an immediate reconnaissance and sampling program at the Grizzly after receiving highly encouraging preliminary results from a recently conducted airborne survey over northwestern portions of the Grizzly. Below is an exact quote from their news release (emphasis is ours):

“A preliminary review of the combined data confirms that the rock units underlying the Grizzly extend north on to the Sheslay property, and shows two parallel faults (extending 15 kilometres from Grizzly West, to Grizzly Central) that appear to be related to porphyry Copper-Gold occurrences on Sheslay and Grizzly West. Additional processing of the data is continuing, and results will be announced as they become available.”

Mineralization knows no borders.  It’s clear that the Grizzly and the Sheslay are intimately connected, geologically, and at the end of the day may combine to form one massive deposit that becomes a mine.

We’re going to be conducting what should prove to be a fascinating interview with GGI President and CEO Steve Regoci later this week.  Between the Grizzly and its properties in Mexico, there’s a lot happening with Garibaldi at the moment – and at yesterday’s 13.5-cent close (see updated chart below), GGI is trading just modestly above its working capital position.  Drill results are pending from Mexico, more drilling is planned for this quarter, the company is receiving a monthly royalty from a pilot coal program on its Tonichi claims, and results are due shortly from a graphite discovery along those coal seams. Plus a team is on the ground at the Grizzly.  If an investor wants action, excitement and results (and who wouldn’t?), they’re going to get from GGI.

Aeromag surveys have not been flown over the entire Grizzly Property – but over the parts that have been flown, the geophysical signatures are virtually identical to those seen at the Sheslay as revealed in this map released yesterday by GGI (this includes data from GGI’s 2007 Fugro survey that was carried out over “Grizzly Central” plus the southern half of the Sheslay – then known as Copper Creek).

GGI Updated Chart

Below is an updated 6-month daily chart from John.  GGI broke above resistance at 12 cents yesterday, and both the RSI(14) and SS(14) are showing strong up momentum.  Technically and fundamentally, October is shaping up to be a “breakout” month for GGI.  Like Prosper Gold, it’s one of the very small percentage of Venture companies that has the working capital, the expertise, the properties and the drive to succeed both on the ground and in the market.

Note: Both John and Jon hold share positions in GGI.  Jon also holds a share position in PGX.