The sounds being heard in the Sheslay district of northwest British Columbia this morning are loud roars from what could be a mighty Grizzly, and those sounds are going to echo throughout this massive region from east to west and north to south.
The Association for Mineral Exploration British Columbia (AMEBC), a highly respected industry organization that was one of the stakeholders involved in the creation of the historic 2011 Atlin Taku Land Use Plan covering much of the Sheslay district (view Premier Clark’s comments below), calls this region “B.C. #1 greenfield project.”
Garibaldi Resources (GGI, TSX-V) has added an exclamation mark to that statement this morning with promising news regarding first-ever drilling at the massive Grizzly Project where the company has immediately intersected a “robust and widespread hydrothermal system” with “key alteration and mineralogical features” associated with deposits defined on adjoining properties, including Doubleview Capital’s (DBV, TSX-V) Gold-rich Copper porphyry discovery 10 km to the east. Assays from Grizzly Central are pending and drilling continues.
What’s more, and this is reasonable speculation given drill core descriptions and photos, Grizzly Central has strong potential to produce a high-grade Gold “kick” given the blend (and the abundance) of pyrite and magnetite observed in the first holes.
Below is an excellent example of the kind of core (magnetite is the key, Gold is often associated with that) coming out of Grizzly Central that has also been seen in Gold-enriched core at the adjoining Hat discovery.
Photo from Garibaldi website – high-grade Gold in this core?
The “Kaketsa Kick”
Mount Kaketsa, the fertile pluton – the “heat engine” – that has been of so much discussion among geologists and others over the past couple of years – may have truly cooked up something remarkable at Grizzly Central which has NEVER had a drill hole put into it until less than 3 weeks ago due to a widespread layer of glacial till that deceived historical prospectors. That overburden cover is now known to be generally less than 30 meters thick, and what’s underneath it could be spectacular (keep in mind how the massive Blackwater Gold-Silver discovery in central B.C. unfolded beginning in late 2009, and how that overburden covered deposit developed into a $500 million company takeover in less than 2 years. In addition, throughout the world, some amazing deposits have been found within just a few km of a fertile pluton).
Check below as we highlight key points from GGI’s news this morning, and of course we’ll have a chance to get into more detail in the days ahead. First, a broad but brief contextual overview of the exciting situation that has immediately developed with the first two drill holes along the western side of Grizzly Central. In some ways, this shouldn’t be a surprise given that a startling 70% of the approximately 90 drill holes over the last 2 years and historically in this district have “hit”.
Multiple Deposit Theory Gains Further Credence
Developing the Sheslay district, and a mineralized corridor the size of Singapore, into a robust new Canadian mining camp will require multiple deposits and a high-grade “starter” pit somewhere, so every new discovery adds value to each company and contributes to the Sheslay “brand”. One company’s success is another’s, so this mornings news from Garibaldi has important district implications, in particular for Doubleview which we believe is going to return quickly to the Hat Property after a “simmering down” of the Chad Day brouhaha that erupted over the summer.
Given the facts of the district drill hole success ratio, it’s hard to imagine that Garibaldi’s huge land package – with many similar geological, geophysical and geochemical signatures to those observed at the Hat and Star projects – won’t produce a full-fledged 3rd district discovery as the 3rd property drilled, especially given this morning’s news. Such a scenario could create potential economies of scale and an exploration “comfort factor” that would simply be too attractive for one or more senior mining companies to pass up.
Instant Results
We caution that it’s still very early in the game at the Grizzly, and assays of course will determine the significance of any discovery, but right off the bat Garibaldi has unquestionably hit a mineralized system that is intimately related to the “heat engine” 2 km west of the company’s initial drill holes. As GGI reported, visual analysis of the first 2 holes has revealed the following (initial core samples are immediately being sent to a lab for analysis):
- A robust and widespread hydrothermal system with abundant pyrite, finely disseminated chalcopyrite, and magnetite
- Alteration zoning that is indicative of a Copper-Gold porphyry environment
- K-feldspar and hydrothermal biotite forming potassic zones in both diorite and quartz monzodiorite, commonly accompanied by quartz veining, intense pervasive epidote alteration, and widespread sericite
- The quartz monzodiorite commonly contains fine-grained chalcopyrite disseminated and along select veinlets
Directly underneath the glacial till exists the right mix of rocks, and the alteration and sulfide assemblages, that back up GGI’s theory that the heavily forested, overburden-covered Grizzly Central “blinded” historical prospectors from the potential of this area. Geophysical and geochemical evidence is also strong. Furthermore, the limited outcrop that has been found – such as “intense potassic alteration associated with quartz-chalcopyrite ± bornite veinlets within the Stuhini group volcanics and sediments” 800 meters southwest of GC-15–01 as confirmed this morning – is highly encouraging and also points to the robustness and widespread nature of the system. It’s worth emphasizing, as well, that finely disseminated chalcopyrite can contain strong Copper values.
Historical Work Plus High-Grade Gold Potential
Extensive surface showings elsewhere in the district, including further west at the Grizzly, acted like a magnet in drawing early explorers to the region more than half a century ago, including Utah Mines which carried out detailed work, though no drilling, at the Hat. Historical drilling discoveries were made by others at the Star, but the significance wasn’t fully understood at the time. Beginning in mid-2013, as district exploration ramped up again, it became increasingly obvious – especially after Doubleview’s critical grassroots discovery that sparked a staking rush in early 2014 – that the Sheslay district could host a series of Cu-Au porphyry deposits along a minimum 30-km long corridor “pregnant” with mineralization according to some highly regarded geoscientists who have been involved in previous world class discoveries.
Keep in mind, also, that the reason the Sheslay district has the “Golden Bear” access road cutting through it (leading to the Tahltan-built Bridge Over the River Sheslay) is due to the past producing (very) high-grade Golden Bear Gold mine 20 miles west of the Grizzly. High-grade Gold showings have been reported in stream sediments and outcrop over various parts of the Sheslay Corridor, including the Grizzly, and recently mid-tier producer Centerra Gold (CG, TSX) just joined the region as it’s going after a high-grade Gold target 20 miles due north of the Grizzly West porphyry target. On trend to the southeast, there is also a high-grade Gold deposit in Stuhini group rocks at the Spectrum Property.
This Map Says It All
In layman’s terms, extensive faulting (white dashed lines on our map below indicate some of these fault structures) has created the pathways for hydrothermal fluids to carry mineralization through a network of intrusives and dykes that have been generated by Kaketsa. These intrusives and dykes are hosted by the prolific Stuhini group package of volcanic rocks.
Several reasons make “Area 3” (the western side of Grizzly Central) so prospective for a potential Cu-Au porphyry discovery with possibilities for a significant Gold “kick”, including the fact that it’s fault-bounded.
NE trending diorite intrusions are unquestionably linked to the large (6 km x 6 km) Kaketsa pluton emplaced into the andesitic and volcanoclastic rocks of Stuhini formation. The geological framework, supported by the orientation and size of geophysical IP and magnetic anomalies, suggests significant deposit potential at Grizzly Central West, and elsewhere throughout Grizzly Central as a minimum 25 sq. km target area has been defined.
Much more in the coming days because what appears to be developing at Grizzly Central could not only have major implications for Garibaldi, but the entire district and even the junior resource sector as a whole if a major new grassroots discovery emerges.
The Atlin Taku Land Use Plan Brings “Certainty”
As BMR exclusively reported in late July, the British Columbia government not only invested great time (years) and taxpayers’ money concluding an historic Land Resource Management and Shared Decision Making Agreement with the Taku River Tlingit First Nation on July 19, 2011, but it even put together a slick video featuring Premier Christy Clark championing the deal.
Signed government agreements are very valuable documents. A government video explaining and promoting an agreement can be priceless, as you’ll see.
Every British Columbian should view this short but informative 2-minute video (click on link below) publicly released by the government in the summer of 2011. The facts speak for themselves.
Importantly, the Atlin Taku Land Use Plan covers almost the entire Sheslay district, a potential world class mineral area with a long history of exploration that has also involved the Tahltan.
Premier Clark Heralding The Land Use Deal
Atlin Taku Land Use Plan – View The Document
https://www.for.gov.bc.ca/tasb/slrp/pdf/srmp/ATLIN-TAKU-LUP.pdf
“This is another significant milestone in land use planning in British Columbia, fully protecting an additional 800,000 hectares and providing certainty for investors over three million hectares in an area of the province rich in natural beauty and natural resources.” (Steve Thomson, Minister of Forests, Lands and Natural Resource Operations, July 19, 2011, B.C. government news release).
Note: John and Jon both hold share positions in GGI. Jon also holds a share position in DBV.
Gold? who knows but my guess is high grade copper (bornite?) based on that photo.
Comment by Tony T — November 3, 2015 @ 5:24 am
Great news…congrats to everyone. Now we can sit back and see what unfolds.
Comment by weatheritout — November 3, 2015 @ 5:50 am
Maybe we will finally see some accumulation and speculation happening now. Next step is to see is they will winterize the camp and want to stay there longer…..
Comment by DDD4 — November 3, 2015 @ 5:57 am
Has DBV ever posted any core pics from their drilling campaign? I tried looking on their website and couldn’t locate anything. If you could post a link it would be great!.
Comment by Tony T — November 3, 2015 @ 6:07 am
DBV posted lots a pics of the hole 23 before the result !
Comment by Guy Delisle — November 3, 2015 @ 6:21 am
Here are a few pics from the DBV website Tony T…
Comment by ChetBaker — November 3, 2015 @ 6:29 am
DDD4 – we have liftoff in my opinion…..i am fully expecting them to winterize to maintain momentum
Comment by Foz1971 — November 3, 2015 @ 6:29 am
Thanks for the links. Based on the crumbling core pic GGI posted and compared to DBV’s core pics, I think GGI’s cores will have higher grades. Assays will tell the story, but I really like what I saw with GGI’s core Picture. High grade ore should not come out in a perfect round core, it should be almost unrecoverable (exactly what the pic above is displaying). Good luck everyone, let’s hope we hit a home run.
Comment by Tony T — November 3, 2015 @ 6:40 am
JON: isn’t ABR/AIX in the area too?? please update! thanks!
Comment by STEVEN1 — November 3, 2015 @ 6:45 am
Photo 32 of 51 on DBV, similar “texture” as the GGI pic second from left.
Comment by rgiroux — November 3, 2015 @ 6:55 am
iceberg on 13 cent ask.
Comment by Tony T — November 3, 2015 @ 6:58 am
Steven, outside of the 3 main players, ABR has a tremendous opportunity with the Hackett Property which borders the Hat. There are also high-grade gold showings up and down that border between the 2 properties, and it’s the view of many who have studied the district that DBV’s Lisle Zone discovery extends not only to the north and northwest, but southeast as well…possibly trending right on to ABR’s ground. The Hackett is a small property but highly interesting.
Comment by Jon - BMR — November 3, 2015 @ 7:00 am
Soooooo…any more on the cloak and dagger world of DBV? Has anyone heard any more about whether we’ll be getting news this week? With the awesome pics that GGI has posted, it sure would be nice to ride the coat tails of that release and get some well timed news out from Farshad.
Comment by ChetBaker — November 3, 2015 @ 7:01 am
I expect to hear from DBV shortly. Since the developments happened on 30 Oct they’re probaly drafting something up now imo.
Comment by DDD4 — November 3, 2015 @ 7:26 am
Pat, I would agree. I think we’re going to see DBV back on the Hat in a flash, and this whole district light up like a Christmas tree. The Lisle Zone is huge and the “blockade” hole ended in a zone of mineralization at 270 m 1 km from the Lisle Zone discovery, so that’s essentially a new discovery in itself.
Comment by Jon - BMR — November 3, 2015 @ 7:30 am
Thanks DDD4 and Jon…excited to see this all play out. DBV and GGI could have some nice Christmas presents for all of us shareholders under the tree (ground) this year!
Comment by ChetBaker — November 3, 2015 @ 7:37 am
I think DBV will be back on site next week to resume drilling. Having both DBV and GGI drilling at the same time will attract a lot of attention especially once DBV proves the Dr is right and GGI confirms the district’s potential…..we’ll probably see the other land holders in the Sheslay start ground work early next spring…..lol
Comment by DDD4 — November 3, 2015 @ 7:38 am
DBV, will resume drilling next week with a short break over Christmas and barring extreme cold will drill all winter. The Chad Day flap has set DBV back six months and Farshad will be using that winterized camp this winter. Lots of lab results will be coming in the near future from both DBV and GGI. DRILL
Comment by Les — November 3, 2015 @ 8:10 am
Jon- EQT has gone quiet, just temporary?, with the $ in the bank
and drilling continuing, awaiting 1st drill results, perhaps in 2-3 wks.
Is this an opportunity?
Comment by Bob — November 3, 2015 @ 8:54 am
The chart says it is an opportunity at these levels, Bob…EQT has had a rough ride recently but has stabilized near its rising 200-day moving average (SMA)…if these guys play their cards right, they should be okay…as you say, plenty of money in the bank…hopefully Garland will deliver some good news – it is very grassroots and a swing for the fences – but in the worse-case scenario, I’m sure they have a Plan “B”…they will also have to have a plan to deal with the free-trading PP stock early next year…
Comment by Jon - BMR — November 3, 2015 @ 9:11 am
Les and DDD4 – you guys should probably get paid as DBV’s IR Department! Haha.
Comment by ChetBaker — November 3, 2015 @ 9:30 am
GGI’s NR said that the core was going to the lab ”immediately”. When can we expect results? My guess is that the holes were around 250 – 350 m long.
Comment by Tom UK — November 3, 2015 @ 9:38 am
What about what they may hit in the next couple of holes?…sounds like they’re rushing core to the lab which is a good sign, Tom…
Comment by Jon - BMR — November 3, 2015 @ 9:40 am
Farshad doesn’t need to pay for it…… the shareholders do it for free.
Comment by DDD4 — November 3, 2015 @ 9:42 am
The missing piece before I get excited with GGI is that they need winterize the camp to drill longer……that will give us a big hint of how good the cores are looking and how optimistic they are…
Comment by DDD4 — November 3, 2015 @ 9:45 am
Its funny how quickly people forget EQT’s potential. Some samples are in the lab right now after they drilled for 3.5 weeks. Lots of cash to complete the drilling program and a high likelihood of striking sulphide at the Garland (same geological signature).
One positive NR indicating massive sulphide mineralization and its $/share.
Just IMHO. Not trying to pump.
Comment by McIlroy — November 3, 2015 @ 9:50 am
Jmo,but I’ll be extremely surprised if GGI drills past this program before next spring.They have announced this one program to spend their FT funds and see where they are.It is not Regoci’s M.O. to deviate from his stated plans.He seems very methodical in his planning.
Tony,I disagree.If you look at DBV core and PGX core,they both had perfectly round solid core and ended up with nice continuous grades,which were right along the lines of what you would expect from a porphyry deposit.It appears that GGI has the same cores coming out as the other two,so I would expect wide-spread disseminated gold and copper in their cores.
Also,if we look at the map,there is more than one heat engine in this area,with the one directly between PGX and DBV every bit as strong,or stronger,than the Kaketsa to the northwest on the GGI property.
There is a major reason Razique is so excited about DBV,as they have only hit the edge of their strike.Even Regoci was impressed DBV got this guy to work them.
DBV may yet prove to have the best property of them all,but by next summer,I will bet all 3 are drilling and driving each other’s shares up with each release.This whole story is just beginning.
One other thing I will say,is imo,the reason the Tahlatan did not sign that Land Use agreement was planning.They will get more for their band by negotiating alone with any company on their land and forcing their hand instead of having a blanket agreement that effectively would have tied their hands in any dispute.
Chad Day and the Tahltan are proving very adept at controlling their land for environmental purposes and monetary ones.
Comment by robinandthe7hoods — November 3, 2015 @ 9:52 am
GGI – core went in not only cause he likes it, but because they need to warm up their market and if they can do it enough, they can do a PP I suspect, which would then give them funds to drill on. I would think once you define approx where it is, you can swiss cheese it to death, which is just moving the rig around in a known area. Another rig could then move elsewhere for exploration. $2MM in the kitty, raised at 25 or 30 cents, w 1/2 wts would be nice and not too dilutive
Comment by david — November 3, 2015 @ 10:04 am
Robin7 , very good observation on that heat engine . My assumption was most were already aware of it . Farshad picked and claimed the DBV property before most others got to the area for a good reason and Dr. Razeque didn’t come to DBV from Antofagasta for a holiday. 25 holes says DBV is on the right track , DRILL
Comment by Les — November 3, 2015 @ 10:09 am
I’m in Robin’s camp of thought. They may well raise some cash if the SP spikes up, but they might hold off drilling until Spring. I think attention will be turned to Mexico once the Grizzly drill program finishes later this month. We don’t know what they have done there or what their plans are, but they could generate cash and announce news that could push the SP higher.
Comment by Tom UK — November 3, 2015 @ 10:18 am
When could we expect GGI to announce if/when they will set up winter drilling? Also, any thoughts on whether DBV would HALT the stock once they announce resumption of operations?
Comment by ChetBaker — November 3, 2015 @ 10:18 am
Oooorrrr,they may decide to sell one of their Mexico properties for the cash.Regoci has stated during interviews that their goal is exploring and selling their properties to bigger companies after a certain stage.They are not producers and don’t want to be.
GGI is in a great situation this way if they choose to be.Mexico is doing nothing for the share price,and they have shown they’ll sell prospective properties before.
Comment by robinandthe7hoods — November 3, 2015 @ 10:23 am
Let’s see, ChetBaker, perhaps they’ll set up shop for the winter after a hit on an 800-metre step-out hole? They are obviously very confident in this system, with that kind of a step-out at this early stage. That is bold. I’m expecting we’ll hear from DBV soon.
Comment by Jon - BMR — November 3, 2015 @ 10:24 am
We couldn’t be in a better situation at this point, almost to easy, they are following a trail that wasn’t part of their initial drilling Schedule. The thruth is there is mineralization of all styles in every direction. This is gigantic!
Comment by Martin — November 3, 2015 @ 1:03 pm
After getting some highly qualified geo’s opinions of GGI’s pictures I decided to sell my .06 GGI shares and bought more DBV….some of them have been following DBV very closely. Their market caps are similar and their stock prices are the same but I based on my DD I feel that DBV is more of a bargain and one that won’t last long.
I could list all the reasons but I won’t bore you with it. In the end, I just feel that the excitement for GGI will be short lived unless they winterize the camp and stay longer. If this happens, I will reconsider buying some shares back.
The more shares of DBV I buy the sooner I will be able to start up the SVMC club…..lol.
Comment by DDD4 — November 3, 2015 @ 1:12 pm
There’s much that cannot be ruled out here, Martin, including a stand-alone high-grade gold deposit, along with a Cu-Au porphyry system, which is something that has been postulated for the past couple of years. As part of our diligence, we’ve spoken to several geologists today – as qualified as you’ll find anywhere – who are in agreement that there’s a very reasonable chance this pyrite-magnetite combination is Gold-bearing…and not low-grade, either. It’ll be fascinating to see how this plays out, what the numbers run, and how much of it there might be. Regoci has agreed to an interview, we’re now preparing for that. This is a prolific district. Each property will have something a little different and special, and it makes sense to hold both GGI and DBV as what could unfold here for the entire district is truly phenomenal. We’ve seen a lot of surprises the last couple of years. More are on the way.
Comment by Jon - BMR — November 3, 2015 @ 1:21 pm
DDD4, so let me guess, now you own 1,050,000 of DBV?? So when it comes to the Shesley play, “all your eggs are in one basket”, personally, I will continue own a decent 6 digit postion in both stocks!! JMHO..
Comment by Jeff — November 3, 2015 @ 1:55 pm
All in one basket comes and goes as I have been in and out of GGI twice now. It’s all based on how I feel….I just think it’s time to be all in DBV for now. If GGI says they will drill longer then I will be back in it with a much bigger position. I booked my money on GGI and feel that DBV will be much higher once things are resolved and drilling resumes. My wife still ownes some GGI in her TFSA though but DBV makes up most of her portfolio. GGI has huge potential and there is no doubt about it but DBV is poised to be the bigger mover in the short term imo … unless they winterize the camp and stay there longer. I’m afraid that if they don’t the excitement will die and the momentum will turn negative….Mexico hasn’t created much excitement.
Comment by DDD4 — November 3, 2015 @ 2:20 pm
Jon, do you think GGI will have sufficient funds to drill through the winter months or will have to do a PP in order to drill through the winter.
Your thoughts sir…
Comment by Jeff — November 3, 2015 @ 2:21 pm
Jeff, if GGI is having success on the ground, and so far they’re off to a promising start, then drilling thru winter is not going to be an issue for them. Success on the ground will be determined obviously by more than just good visuals – this will mean early strong assay results. They are rushing core to the lab, and likely pushing for a rush on some key samples. On that note, Jamie’s point is spot on. However, anticipation will build in GGI ahead of results, just as DDD4 correctly indicated that anticipation should build with EQT. And keep in mind that if GGI intersects something else of major interest, in the next hole or 2, then that will also add to the speculation.
Money-wise, to drill over the winter, GGI will require additional funds, but success in drilling and a fresh grassroots discovery has a way of attracting dollars. Potentially, this may not require doing another PP. They do have warrants from last December’s financing at 30 cents that would raise about $1 million if exercised. If they confirm a significant discovery through assay results, you can be sure the stock will take a major run and those warrants will get exercised, and they will have some other players who will also want to jump in and keep the drill turning at Grizzly Central.
The market will find our interview with Regoci extremely interesting. When he gets excited, as he is now, he can be very powerful in terms of delivering a message. He strongly feels he’s got a tiger by the tail.
Comment by Jon - BMR — November 3, 2015 @ 6:37 pm
Thanks for the shares DDD4. GGI stock did not move after the new photos and NR were released. I think this made GGI a buying opportunity. If the assay results come back with any type of reasonable grade, then the stock will fly. Now is not the time to sell IMO, but that is what makes a market.
Comment by Tom UK — November 3, 2015 @ 8:13 pm
It was great day for GGI, Tom, and for investors, given the increased knowledge of what is developing, and the stock was able to edge higher on its best volume in 13 sessions. They are into a system (or even systems). When you are into a system, very sudden things can happen. As this gets absorbed over the coming days, and people listen to what Regoci has to say, and GGI pushes out more information, this should gain some nice traction. The junior market definitely needs a new grassroots discovery somewhere, and right now this has the best shot based on all the evidence. To have this kind of a start on a property never previously drilled, is exciting to say the least.
Comment by Jon - BMR — November 3, 2015 @ 8:54 pm
Hey Jon…maybe I missed it but when is your interview with Regoci?
Comment by weatheritout — November 4, 2015 @ 4:28 am
We should be ready to post that starting tomorrow, weatheritout.
Comment by Jon - BMR — November 4, 2015 @ 4:37 am
Good stuff…appreciate it. Did you already do the interview?…..like what you heard?
Comment by weatheritout — November 4, 2015 @ 4:40 am
weatheritout, yes, let me put it this way: Some very interesting days coming up.
Comment by Jon - BMR — November 4, 2015 @ 5:52 am
Great….look forward to hearing it
Comment by weatheritout — November 4, 2015 @ 5:53 am
I notice yesterday that TSE shows volume for GGI as 299000. Yet when you go to stockcharts it shows volume 345000. Anyone now why the discrepancy?
Comment by weatheritout — November 4, 2015 @ 6:01 am
Some of the volume, weatheritout, was on the alternative Canadian exchanges. Plus nearly another 100K in the U.S.
Comment by Jon - BMR — November 4, 2015 @ 6:02 am
Gotcha….I thought the TSE still shows the alternative exchanges. Makes sense
Comment by weatheritout — November 4, 2015 @ 6:05 am
To see all the trading go to Stock Watch website
Comment by John BMR — November 4, 2015 @ 6:09 am