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.

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.