Investor expectations seemed to be overly high for Garibaldi Resources Corp. (CVE:GGI) as assays from hole 14 are pending
SmallCapPower | November 21, 2017: Garibaldi Resources Corp. (TSXV:GGI) announced Monday that drill hole EL-17-14, the latest at its flagship E&L Project at Nickel Mountain near Eskay Creek, intersected massive (16.7 meters or 55.1 feet) sulphides featuring nickel-copper-rich mineralization. Assays for this fourteenth hole are pending but grades are expected to be high as confirmed by assays from the fourth hole (EL-17-04) with results showing 7.2% nickel and strong copper grades at relatively shallow depths in the immediate vicinity of EL-17-14. Drilled to a depth of 252 meters and collared 200 meters east of the historic main zone, EL-17-14 cut 7.2% nickel, 3.4% copper, 0.82 g/t palladium, 0.78 g/t platinum, 0.40 g/t Au, 10 g/t Ag and 0.195% cobalt over 4.8 meters.
Dr. Peter Lightfoot, technical adviser to Garibaldi Resources, commented “The high nickel grade of the assayed massive sulphide intercept in hole #4, combined with other assays as well as XRF analysis of sulphide mineralization in multiple holes, supports a Nickel Mountain nickel tenor that is at the high end of the estimated range as per Garibaldi’s November 10, 2016, news release.”
Steve Regoci, President and CEO of Garibaldi Resources commented, “We now have proof of concept with the Volterra borehole EM technology, which has vectored us toward lenses of massive sulphide mineralization. It’s also important to realize that the massive sulphides provide the trail that will lead us into what’s expected to be the feeder conduit for Nickel Mountain mineralization. These are exciting times for the Eskay Camp and Garibaldi shareholders, especially at a time of such increased interest in nickel and copper.”
Garibaldi Resources has a powerful presence in the prolific Golden Triangle part in British Columbia with its 100%-owned flagship E&L project with nearly 200+ sq km at Nickel Mountain. The Company commenced drilling at the Nickel Mountain project in August 2017, and has so far completed fourteen holes over 3,671 meters with high-grade nickel assay results reported for the first four holes.
Shares of Garibaldi Resources have been on a tear, surging nearly four fold ever since the Company reported intersecting Nickel-Copper Sulphide mineralization in the first drill hole at E&L on September 1, 2017. Follow up news on further building on mineralization (Oct 13) along with news flow of $16 million financing (Oct 4 – $6.0 million and Oct 16 -$10.0 million) kept the stock’s momentum strong. Investors, though, sold into the latest news of a new mineralization zone, with shares falling nearly 14% to close at $3.95 on Monday, and its stock price is off another 8% in early Tuesday trading. It remains to be seen how the stock reacts on further news flow of additional holes as well as assay results from the fourteenth and nine other holes.
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