Garibaldi Resources Corp.’s (TSXV:GGI) stock price has nearly doubled in less than six weeks
SmallCapPower | July 24, 2019: Garibaldi Resources Corp. (TSXV:GGI), a nickel-focused explorer, has seen its shares rally 92% on the launch of its 2019 drilling program at Nickel Mountain in the Golden Triangle region of British Columbia. Over the past month Garibaldi stock is up 40%, outperforming its peers CaNickel Mining (TSXV:CML), Giga Metals Corporation (TSXV:GIGA), and Royal Nickel Corporation (TSX:RNX), which have returned -13%, 16%, and -28%, respectively.
On June 13, 2019, Garibaldi Resources announced its 2019 drill program at Nickel Mountain in the Golden Triangle region of British Columbia. The 2019 program is expected to focus on building out the five-known mineralized zones at the E&L Deposit outlined through 46 drill holes during 2017 and 2018. The Company expects to significantly increase drilling meterage and reduce drilling costs utilizing a state-of-the-art drill rig that requires less fuel and water. The new drill rig operates with 160 horsepower at the head and can reach depths of 2,000+ meters, using 25%-30% less fuel. The new drill program is expected to provide valuable insight on the E&L deposits at the Nickel Mountain project.
On July 22, 2019, Golden Ridge Resources (TSXV:GLDN) reported positive assay results for the first 2019 hole drilled on the Company’s Hank Property located just north of Nickel Mountain. The intersection was highlighted by 0.35% Cu, 0.28 g/t Au and 1.71 g/t Ag (0.55% CuEq) over 278m (from 257m to 614m), including 0.28% Cu, 0.22g/t Au and 1.43g/t Ag (0.44% CuEq) and a second interval of 0.28% Cu, 0.22g/t Au and 1.43 g/t Ag (0.44% CuEq1) over 380.5m (from 257m to 535m).
Another catalyst for the stock could have been the Federal Reserve’s dovish comments at its last FOMC meeting on June 18, 2019. Jerome Powell signaled that the U.S. Federal Reserve could be open to cutting interest rates, which started a rally in the price of gold and gold broke through US$1,350/oz for the first time in six years. During this period, gold and nickel were up ~6% and ~18%, respectively.
Exploration Overview
In the summer of 2017, Garibaldi Resources Corp’s drill hole EL-17-14 at Nickel Mountain near Eskay Creek intersected 8.3% nickel, 4.2% copper, 0.19% cobalt, 1.96 g/t platinum, 4.5 g/t palladium, 1.1 g/t Au and 11.1 g/t silver over 16.75m starting just 100.4m downhole, within a broader 40.4-metre core length, highlighted by 3.9% nickel and 2.4% copper. In 2018, additional drilling confirmed an even shallower new zone (Northeast zone) featuring 7.7% nickel and 2.95% copper over 4.8m within a broader interval of 49m grading 1.34% nickel and 0.89% copper (core length) plus cobalt, platinum, palladium, gold and silver.
The Nickel Mountain location is southeast of the Eskay Mining Camp, which is known for its spectacular grades. In its history, the Eskay Mining Camp produced approximately 3.3M oz/Au and 160M oz/Ag at average grades of 49.5 g/t Au and 2,406 g/t Ag. It was once the world’s highest-grade gold mine and the fifth-largest silver mine by volume. Last summer, Pretium Resources commenced commercial production at Brucejack to the southeast of Nickel Mountain. Brucejack features Proven and Probable Reserves of 15.6 million tonnes grading 15.6 g/t Au and 11.7 g/t Au, making it one of the highest-grade gold mines in the world.
British Columbia – Golden Triangle Region
About the Golden Triangle Region of British Columbia
The Golden Triangle region of British Colombia is one of the most mineral-rich belts in the world. The region has produced millions of ounces of gold and tens of millions of ounces of silver over the past century. To date, much of the exploration done in the Golden Triangle has been above the treeline. However, many exploration companies have begun drilling deeper holes to identify additional deposits.
Location of Nickel Mountain Project
About Garibaldi Resources
Garibaldi Resources Corp is a Canada-based exploration company that explores for gold, silver, and base metal deposits in Canada and northern parts of Mexico’s prolific Sierra Madre mountains.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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