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November 10, 2015

Three-rific: GGI Hits Again At Grizzly Central As Drilling Continues

5:00 am Pacific – Breaking News Including Interview Clip

Confirmed.  At the very least, Garibaldi Resources (GGI, TSX-V) now has a thrilling grassroots drill play that’s rapidly gaining momentum in a prolific area that the Association for Mineral Exploration British Columbia (AMEBC) calls the province’s “#1 greenfield district.”

Potentially, what this could lead to is a critical game-changing 3rd discovery on the 3rd property drilled in the Sheslay district, a region that really came to life in early 2014 when Doubleview Capital (DBV, TSX-V) spectacularly turned into a “10-bagger” and sparked a staking rush with its Gold-rich Hat Copper porphyry discovery.

In the case of Garibaldi, this morning’s update suggests that the fertile Kaketsa pluton and “heat engine” – just 2 km west of GGI’s current drilling at Grizzly Central – has created not just a porphyry environment on its margins, but perhaps a high-grade Gold system in association with a porphyry deposit.  That is speculative until proven by assays, but what’s unfolding in the early going is unquestionably profoundly interesting.  Especially considering that Grizzly Central has never been previously drilled.

Last Tuesday, GGI reported that the first 2 holes along the western, fault-bounded side of Grizzly Central revealed a “robust, widespread hydrothermal system with abundant pyrite, finely disseminated chalcopyrite, and magnetite.”

This morning, the company released specifics regarding GC-15-03 which was collared 200 meters due south of the first hole.

This third hole returned 3 sections over 277 m from 31 m to 308 m:

  • Fine-grained disseminated chalcopyrite from 31 m to 86 m;
  • A 16-m zone of intense quartz with sulfides in rock that’s “dark red to maroon, magnetic and fine-grained” between 86 m and 102 m;
  • A 206-m intersection from 102 m to 308 m where “pyrite occurs as very fine-grained polished shear surfaces in a black, strongly magnetic unit.”

We know the expansive Sheslay Corridor and the general region very well, having conducted extensive research (including an area visit) going back to 2013 before the 50 or so combined drill holes at the Hat and the Star (about 10 km apart) demonstrated the world class potential of this under-explored district.

The past producing and exceptionally high-grade Golden Bear mine is just 20 miles from the western border of the Grizzly, and Garibaldi is examining that model more closely as first-ever drilling progresses at the Grizzly (at Golden Bear, mineralization was “strongly associated with very fine dark grey sulfides, primarily pyrite, that occurs in very strongly altered and often gougy volcanic rocks” according to a 1995 North American Metals Corp. technical report). 

We’d be shocked if Garibaldi’s 3rd hole doesn’t represent a discovery of significance, and that’s on top of 2 promising holes already.

These early developments at the Grizzly bode extremely well for the entire district which recently got a new neighbor in Centerra Gold (CG, TSX).  The mid-tier producer reported just over a week ago that surface samples returned up to 151.2 g/t Au and 2,786 g/t Ag at the Hearts Peak Property, 20 miles north of GGI’s Grizzly West porphyry target.

At the Hat, as we all know, Doubleview is into a major porphyry system that is so significant, the property got caught up in political gamesmanship over the summer over broad discussions between the Tahltan’s Chad Day and the provincial government concerning a new and expanded Shared Decision Making Agreement between the two parties.  It’s critical to keep in mind that almost the entire Sheslay district is protected for exploration and potential resource development under the historic 2011 Atlin Taku Land Use Plan.  Armed also with a multi-year drill permit from the Ministry of Energy & Mines, Doubleview is in a strong position to quickly return to the Hat now that the smoke has cleared from that summer “camp out” controversy.

Audio Clip – Regoci On Progress To Date At Grizzly Central

Click on the arrow below to listen to a 1-minute excerpt from our interview with GGI President and CEO Steve Regoci.

Grizzly Central Map Oct 23

The Kaketsa Factor

It’s a geological fact that around the globe, some world class deposits are found immediately adjacent to a fertile pluton.  That’s what initially attracted us to Garibaldi when we carried out extensive due diligence on this company and the Sheslay district more than 2 years ago.   A very valid theory is that “Area 3” was actually originally attached to Kaketsa, and split off and shifted to the east by a couple of km.

Just imagine the kind of dynamic geological forces that would have been involved in a process such as that, and how intense heat and fluids may have created something very large and unique at Grizzly Central.  That’s one theory that’s being postulated by some very bright geologists.

However it has occurred, Kaketsa has undeniably impacted this area being drilled.  We’re about to learn a lot more in the coming weeks.

Note:  John and Jon both hold share positions in GGI.  Jon also holds a share position in DBV.

33 Comments

  1. Permission to do my happy dance….sorry no video 🙂 Wow, this just gets better. My assumptions about the property continue to change. I thought this was the 800 metre step out but appears not? Is this the next hole?
    Cheers

    Comment by FrankNS — November 10, 2015 @ 5:18 am

  2. You can bet the XRF analyzer is revealing some interesting numbers. They wouldn’t put out this NR if it wasn’t.

    Comment by Dan — November 10, 2015 @ 5:28 am

  3. Yes I appreciate the description of the intersections at various intervals – very helpful clues

    Comment by FrankNS — November 10, 2015 @ 5:59 am

  4. Also did anyone catch this A 1-km long north-south trending geochemical anomaly has been outlined approximately 500 m east of where these holes were collared.?

    Comment by Dan — November 10, 2015 @ 6:11 am

  5. Maybe I shoulda bought GGI instead of dbv ……

    Comment by T — November 10, 2015 @ 6:59 am

  6. This district is prolific, T. Everyone’s going to win.

    Comment by Jon - BMR — November 10, 2015 @ 7:11 am

  7. I bought more GGI…..can’t wait for assay results.

    Comment by DDD4 — November 10, 2015 @ 7:13 am

  8. DBV- 4 months later…..nothing !

    Comment by Guy Delisle — November 10, 2015 @ 7:26 am

  9. EQT- looking slightly stronger so far this am…..

    Comment by Bob — November 10, 2015 @ 7:40 am

  10. Yes, lots of insider participation in the PP as well which is encouraging.

    Comment by Jon - BMR — November 10, 2015 @ 7:42 am

  11. Yes….EQT looks like it’s ready to move up on speculation of results….

    Comment by DDD4 — November 10, 2015 @ 7:45 am

  12. ….at some point this is going to push through .15 ….it’s almost like Regoci is giving everyone a chance to get in

    Comment by weatheritout — November 10, 2015 @ 7:58 am

  13. It certainly has that feel, weatheritout. And what if GGI were to announce a step-out hit 800 m to the southwest?

    Comment by Jon - BMR — November 10, 2015 @ 8:06 am

  14. Jon, the interview occur before hole 3 was at 80m?

    Could the Last interval 200m be high grade as Well?

    Comment by Martin — November 10, 2015 @ 8:53 am

  15. Pure Energy – For any PE followers, last at .60 cents , up .07 on 478,000 shares.
    Perhaps this is heading back to the .75 – .80 cent range again??? Lots of speculation on another meeting with Albemarle (contiguous neighbour at Silver Peak), drilling has began with 3 holes to increase an inferred resources calculation, new Electric Vehicles manufacturers entering the market and higher demands for Lithium.
    All looking quite positive, but I am bias.

    Comment by vepper — November 10, 2015 @ 9:06 am

  16. Coverage…
    http://ceo.ca/2015/11/10/rolling-the-dice-drilling-for-a-copper-gold-porphyry-discovery/

    Comment by FrankNS — November 10, 2015 @ 9:10 am

  17. GGI – FrankNS, thanks or the additional coverage information.

    Comment by vepper — November 10, 2015 @ 9:19 am

  18. Meanwhile, Doubleview Capital (DBV, TSX-V) has enormous market potential as it prepares to return to the growing Hat discovery 10 km east of Garibaldi’s ongoing drilling.

    The coming days are going to be fascinating.

    Is this from your sources or are you assuming? Any word as to when Dbv will get back to drilling?

    Comment by Sameer — November 10, 2015 @ 9:46 am

  19. Sameer, there’s no question the next week is going to be fascinating up in the Sheslay district…plenty of rumors regarding DBV getting going again at the Hat…everyone is waiting for some news, that’s the key…

    Comment by Jon - BMR — November 10, 2015 @ 9:52 am

  20. When can we expect result Jon?

    Comment by Martin — November 10, 2015 @ 9:56 am

  21. Martin, GGI announced last week that initial samples were being sent to the lab immediately…you can count on at least 10 business days for results, and allow for a little extra time for potential “re-checks” if certain grade thresholds are exceeded…

    Comment by Jon - BMR — November 10, 2015 @ 10:24 am

  22. For the EQT.V fans out there …be mindful >>> Equitas Resources Corp. Free Trading Shares 6,134,918 0.09 no yes 11/17/2015

    Comment by zippy — November 10, 2015 @ 10:36 am

  23. Vepper – have you talked to PE IR lately.

    Comment by dave — November 10, 2015 @ 10:43 am

  24. Dave – Lately, not me directly, but very recently (Monday morning) heard from two to three others who have.

    Comment by vepper — November 10, 2015 @ 11:06 am

  25. Vepper – talked to IR yesterday. They know nothing about a meeting and Mr. Mintok is in Germany

    Comment by dave — November 10, 2015 @ 11:46 am

  26. Vepper – my bad, Mintok in Canada, the VP is out of country.

    Comment by dave — November 10, 2015 @ 12:00 pm

  27. Hi Jon, have you heard anything about DBV concerning a NR or do you know if there is movement at the company drilling installation or at the site ?

    Comment by Sylvain — November 10, 2015 @ 12:27 pm

  28. Dave – As I say “speculation” of meeting. As you know, everyone has to do their own due dilly. Here are two recent posts from PE -Stockhouse forum. Is this guy blowing smoke or is IR stating denial? Take all form posts with a grain of salt and do not run to the bank with any of it.
    Read on Stock House… “Meeting with Albemarle”

    Comment by vepper — November 10, 2015 @ 12:32 pm

  29. Zippy- Is that 6mil + shares coming free trading your saying for EQT on11/17/2015, or are you asking if this is coming,and can anyone verify this on the board,or BMR boys ? This sure would kill any rally in the near term i would think?

    Comment by bigbear — November 10, 2015 @ 1:01 pm

  30. bigbear

    Equitas Resources closes $521,468 private placement

    2015-07-16 08:51 ET – News Release

    Mr. Kyler Hardy reports

    EQUITAS RESOURCES CORP. CLOSES $521,000 NON-BROKERED PRIVATE PLACEMENT

    Equitas Resources Corp. has closed a non-brokered private placement previously announced on June 26, 2015. The company has issued 6,134,918 units at 8.5 cents per unit for gross proceeds of $521,468. Each unit consists of one common share and one share purchase warrant exercisable at 15 cents per warrant share for 24 months from closing.

    The company paid cash finders’ fees of $1,760 and issued 20,705 broker warrants exercisable at 15 cents per share for a period of two years from this closing. All securities hereunder are subject to a four-month-and-a-day hold from the closing date.

    The proceeds of the private placement will be used to advance the company’s exploration activities at the Garland property in Labrador, Canada, and for general working capital.

    We seek Safe Harbor.

    Comment by DBReese — November 10, 2015 @ 2:01 pm

  31. EQT – it depends on who took that PP down? Insiders won’t be selling. and considering we have pending news…

    Comment by George — November 10, 2015 @ 3:37 pm

  32. DBReese & George- Thanks for the search on that question, and the response George, at 8.5 cents your not looking at making a killing at where we are now. Didn’t know the pricing so thanks again guys. Hope for some good news.

    Comment by bigbear — November 10, 2015 @ 5:46 pm

  33. bigbear and George- I doubt insiders would sell either and this is who took the PP down. Insiders took 1,770,588 shares.

    Number of shares: 6,134,918 shares

    Purchase price: 8.5 cents per share

    Warrants: 8.5 cents per share

    Warrant initial exercise price: 15 cents

    Warrant term to expiry: Two years

    Number of placees: 26 placees

    Insiders: Ridge Resources Ltd. (Kyler Hardy), 1,176,470; 877384 Alberta Ltd. (Jody Dahrouge), 294,118; Barbara Makela, 300,000

    Comment by DBReese — November 10, 2015 @ 7:40 pm

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