It was a tough 2nd quarter in the market for Garibaldi Resources (GGI, TSX-V) which tumbled from 15.5 cents at the end of March to a low of 6 cents by late June – an event triggered primarily by indiscriminate fund selling. Sprott Securities unloaded millions of GGI shares (and its holdings in nearly 100 other companies) as part of its new mandate to invest more in non-resource sectors.
Garibaldi President and CEO Steve Regoci, a former broker, looked at the positive side of the fund liquidation in a wide-ranging interview with BMR.
“With what we have in Mexico and what’s about to unfold in B.C., it’s exciting for us to know that there’s not a huge overhang out there by one particular fund as existed in prior years. It has all been cleaned up, and we’re going to have a healthier market, a broader-based market with more liquidity. Importantly, through all of this we’ve kept focused on our projects and our mission which is to consistently move forward and build value, regardless of market conditions. Investors will see that more clearly as we get back into the news flow cycle,” Regoci stated.
That cycle got interrupted in Q2 as funds got aggressive and GGI went uncharacteristically quiet on the news front.
The second half of 2015 for GGI should have a much different “tone” than the first 6 months, according to Regoci. The key, as always for any junior, will be Garibaldi‘s ability to “seize the moment” and execute effectively on the ground and in the market. That means GGI must reassert its strengths and recapture the rhythm that led to its success in 2014. We believe it will, which means the sharp pullback since April has very possibly created the kind of opportunity investors had during 2013 when the stock was trading around current levels before a steady climb to a multi-year high of 32 cents. Few companies have such a quality mix of properties in two favorable jurisdictions, Mexico and British Columbia.
Sheslay District Developments
Regoci’s comment about B.C. (“what’s about to unfold”) refers primarily to developments in the Sheslay district which has heated up considerably, and not just because of record-setting temperatures.
Given the increasing possibilities for the discovery of multiple world class deposits, the district is attracting much more attention from the Tahltan Nation (a stamp of value) as Doubleview Capital (DBV, TSX-V) aims for a “home run” at its Hat Project while Garibaldi continues to advance toward first-ever drilling at the 284 sq. km Grizzly.
The district has been explored intermittently for more than half a century, but never before has it been this close to “breaking out on the ground” as Regoci described it.
“As excited as we are about Doubleview’s success, and as much as we are rooting for them and vice-versa, I remind investors that we control more than half of the known Sheslay mineralized corridor with the largest land position and a multitude of high-quality, advanced targets,” stated Regoci.
“We have financial strength and a proven team with a mandate to produce a discovery hole for our shareholders in the most cost-effective manner possible. It’s a strategy that has worked for us in Mexico. We were first on the ground this winter in the Sheslay district. We’ve expanded our land package, recently adding a very high-grade Gold showing. We’ve accumulated a lot of data. As far as we’re concerned, the Grizzly is where this all begins. Stay tuned.”
Regoci has much to say about the merits of the Grizzly, but in our interview he humbly opted first to give a “tip of the Hat” to Dr. Abdul Razique, Doubleview’s chief geoscientist who appears to have connected important “dots” that could produce some imminent, game-changing drill holes about 1 km northwest of the Lisle Discovery Zone.
Click on the arrow below to view Part 1 of our feature on GGI with Regoci discussing the Sheslay district in general.
Note: John and Jon both hold share positions in GGI and DBV.
Thank you BMR for the update. I look forward to the remaining parts of the video and of course some actual news releases from the company.
Comment by Andrew — July 6, 2015 @ 6:24 pm
Great job guys, let’s hope the news flow starts this week, they should have plenty.
Comment by Tombc — July 6, 2015 @ 7:22 pm
Thanks BMR cant wait to hear more from Regoci in the form of NR’s and your interviews, he seems very confident in the interview, now lets hope they get to drilling soon…
thanks
Comment by greg — July 6, 2015 @ 7:40 pm
when do you see any news from GGI?
Comment by STEVEN1 — July 6, 2015 @ 8:09 pm
Joh missed out on my Alert for the first time hope that the posting problems will be resolved don’t want to miss any more issues.Enjoy them too much up DBV
Comment by Eddie — July 6, 2015 @ 8:39 pm
Let’s hope GGI gets a drill turning somewhere on the Grizzly this year. The more tonnage they prove up the sooner the Sheslay district becomes a new mining district of the world.
Comment by Les — July 6, 2015 @ 9:27 pm
Jon
Are you still working on BMR alerts?
I haven’t received mine either?
Comment by Greg — July 6, 2015 @ 9:42 pm
Yes, Greg, our system was a bit overwhelmed but everything is getting cleaned up today. Appreciate your patience.
Comment by Jon - BMR — July 7, 2015 @ 4:17 am
DBV needs to get h23 out as this is getting ridiculous. H23 was completed on 20 Dec 2014! At this rate we can expect h24 in 2016! I understand there were delays but the hole was completed 6.5 months ago. We need some fireworks in the Valley to get the SVMC started!
Comment by d4 — July 7, 2015 @ 4:38 am
You’re right, Les. It all comes down to volume and grade. It’s not hard to do a back-of-the-envelope calculation of about 250 million tonnes for the Lisle zone when you look at the length of the zone, the width, the depth and the grades. And if that’s just the southeastern tip, which it appears to be, look out. Somewhere in the system they should find a high-grade starter area, that’s key, and it wouldn’t be surprising if a stand-alone Gold deposit is found on the periphery of the Hat system and/or Grizzly system. That’s not uncommon in strong porphyry environments and there are high gold grades at surface in specific areas of the Hat and Grizzly.
On the Grizzly side, there are major Cu-Au porphyry target zones (Grizzly West and Grizzly Central) many km apart with similar signatures as the Hat. I suspect GGI could drill Grizzly West tomorrow but I think they’re looking at this bulging area of Grizzly Central as being the bulls-eye of the district. Fascinating for geologists to try and figure this all out.
Comment by Jon - BMR — July 7, 2015 @ 4:50 am
Jon- is the plan still to have DBV’s part 2 out today?
Comment by d4 — July 7, 2015 @ 5:21 am
DBV level 2 keeps getting better every day……bids are the strongest I have seen them in a long time and asks their weakest. All it needs is something to ignite it! The pressure is building…..
Comment by d4 — July 7, 2015 @ 5:33 am
I agree d4…tick, tock. I’m wondering if they are going to release H23 and H24 together as well. Could end up being a pretty monumental NR if that’s the case.
Comment by Steve A. — July 7, 2015 @ 6:05 am
OIL HAS LOST ALMOST 15-18% IN TWO DAYS?? GOLD 1151…..YIKES….WHERE IS VENTURE SUPPORT……
Comment by STEVEN1 — July 7, 2015 @ 6:29 am
Perhaps the reason that dbv has not released the remainder of hole 23 is that it is more of same, very promising but not super duper. To me this is the cautionary flag. Re ggi, not a word about its lonely drill still turning away somewhere down south. Steve has stuck to his story of (possible) great news coming forth in the future. until some truth machine results come forth from either, it remains to be a bit cool. Richard l p.s. I did not recieve an e-mail either
Comment by richrd l — July 7, 2015 @ 6:31 am
The situation in China needs to stabilize, Steven – that’s the problem, not Greece. John’s VIX chart yesterday suggested we’re going to see increased volatility. Should be an interesting rest of the week.
Comment by Jon - BMR — July 7, 2015 @ 6:32 am
Richard, I’m starting to agree with your thinking about H23. This delay is got me thinking that the results are not spectacular. But I think we will hit Big with H24! Well hopefully
Comment by Sam — July 7, 2015 @ 6:42 am
What situation in China????? – Here we are again, at that stage where nothing is moving. Non-mining or mining. Don’t ya just love July.
D4 – I am thinking the results from H23 down deep were not as good as they hoped and they want to try and combine H23 with H24. If this is the case, we need good results from H24.
I think the key to the Shelsay is GGI drilling that firework zone at the top of the mountain. If they started drilling this week though you won’t see results until Sept. and then winter sets in early up there. The weather in northern B.C hurts the time frame of things vs. the weather in southern B.C. – Just my thoughts .
Comment by dave — July 7, 2015 @ 6:50 am
I agree with you Richard !
Comment by guy delisle — July 7, 2015 @ 7:14 am
My thoughts on hole 23 are that the results are similar to the previous and may have run out of mineralization as tole 23 is on the southern edge of the Lisle zone. Hole 23 is excellent and still the best hole DBV has so far but it would make sence to release it with hole 24. The coming video should clarify things and give a better indication as to the size of this monster . I have every confidence that hole 24 will also prove to be mineralized indicating that there is over 2 billion tonne in ( A , B , E ) worthy of an open pit operation and that is nothing to be sneezed at.
Comment by Les — July 7, 2015 @ 7:29 am
Silver at $14.88 – a 5 year low. Are you kidding me.
Comment by dave — July 7, 2015 @ 7:31 am
I certainly hope that H23 is better than people might suggest. Going to be a long summer if Farshad is already chasing holes and putting off news releases.
Comment by Steve A. — July 7, 2015 @ 10:05 am
does anyone know why doubleview res. is halted????
Comment by tony roma — July 8, 2015 @ 5:41 am
Could be a range of possibilities, Tony, from hole 23 results, something peculiar they have just hit in the new round of drilling, corporate developments (a major stepping up to the plate?), a Tahltan stunt…who knows…Farshad is leaving everyone in suspense with this one…
Comment by Jon - BMR — July 8, 2015 @ 5:51 am