14:47:14 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Garibaldi Resources Corp
Symbol GGI
Shares Issued 70,792,125
Close 2016-06-14 C$ 0.085
Market Cap C$ 6,017,331
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Garibaldi Resources to acquire E&L deposit

2016-06-15 07:46 ET - News Release

Mr. Steve Regoci reports

GARIBALDI ACQUIRES ADVANCED NICKEL-COPPER-GOLD DEPOSIT IN GOLDEN TRIANGLE

Garibaldi Resources Corp. has acquired an option to purchase a 100-per-cent interest in the historic E&L nickel-copper-gold deposit and surrounding claims located at Nickel Mountain, contiguous to Colorado Resources' KSP property and six kilometres southwest of Eskay Creek in the heart of escalating exploration activity within northwest British Columbia's prolific Golden Triangle.

This acquisition boosts Garibaldi's holdings in the district to more than 150 square kilometres covering three strategic properties, targeted on the merits of key geological features mapped along mineralized trends. Garibaldi's E&L and Palm Springs project (PSP) adjoin half of the entire eastern border of the KSP which stretches 15 km north-south.

The E&L deposit was discovered by five diamond drill holes in 1966 with mineralization extending to 210 metres and zones remaining open laterally and to depth. Work since 1971 has been limited to aeromagnetic surveys with no documented exploration since 1990. The claims covering the deposit were held by Silver Standard Mines from 1958 to 2014, and Silver Standard retains a 1-per-cent net smelter return (NSR) royalty.

Historic reports show that mineralization at E&L consists of disseminated and massive pyrrhotite, pentlandite and chalcopyrite hosted in an olivine gabbro stock that intrudes Lower Jurassic sediments and volcanics. The Nickel Mountain gabbro is a unique lithology in the Stewart-Iskut region.

According to the B.C. Ministry of Energy and Mines Minfile No. 104b006, the E&L has historic indicated and inferred resources estimated at 2.9 million tonnes of 0.80 per cent nickel, 0.62 per cent copper, 0.34 gram per tonne and six g/t silver with anomalous values in platinum group elements (Quartermain, R.A., 1987; Sharp, W.M., 1968). In its 1971 annual report, Silver Standard noted grades exceeding 1 per cent Ni and 0.70 per cent Cu over 100 feet with sections up to 10 feet returning 5 per cent Ni and 1.5 per cent Cu.

The company cautions investors that a qualified person, as defined by National Instrument 43-101, has not done sufficient work to classify these historical estimates as current mineral resources or reserves. These estimates should not be relied upon until they have been verified and supported by an NI 43-101 report. The company is not treating the historical estimates as current mineral resources.

Steve Regoci, Garibaldi president and chief executive officer, commented: "The E&L is another great example of an important early discovery in this prolific district that was never systematically followed up on. New technology to test this type of magmatic deposit offers our team a game-changing opportunity. Exceedingly improved conditions warrant revisiting the E&L now given the tremendous amount of renewed activity and excitement in the district brought on by expanded infrastructure, receding ice fields, new surface discoveries, and mine development at Brucejack and KSM.

"We have obtained a wealth of high-quality historical data on the E&L, including detailed mapping, sampling, drill core logs, aeromagnetic, magnetic and very low-frequency surveys," Mr. Regoci continued. "This information will allow our geological team to reinterpret the projected geometry of this deposit, aiming to capture its full potential after Sumitomo Metal Mining Corp.'s underground drilling in 1970 to [19]71 provided many valuable clues.

"The geological richness of the district is incredible, and we intend to further demonstrate this over our large landholdings including E&L this summer. We also look forward to drill results from programs on properties around us, including of course Colorado's adjoining KSP where the high-grade Inel gold target is being advanced. Seabridge Gold, Tudor Gold, Eskay Mining, Aben Resources, Metallis Resources and Romios Gold all border ground held by GGI and their work will certainly help our district model," Mr. Regoci concluded.

The deal

Garibaldi can acquire a 100-per-cent undivided interest in the 766-hectare E&L claims from the vendor by completing the following over the four-year option period:

  • Making cash payments totalling $100,000, issuing 1.1 million shares of Garibaldi over a four-year schedule and incurring exploration expenditures on the property totalling $375,000 by the fourth year of the option.

The vendor retains a 2-per-cent NSR, half of which Garibaldi may purchase at any time for $1-million. In regard only to claim 104449 (comprising nine cells covering the historic E&L deposit), the 2-per-cent NSR royalty provision is divided into two separate 1-per-cent royalty payments, to be paid to Silver Standard Resources as to 1 per cent and to the vendor as to 1 per cent. Garibaldi may purchase one-half of the vendor's 1-per-cent NSR at any time for $500,000.

Area map

Please visit the company's website for an updated June 15 area map that features the E&L deposit contiguous to the eastern border of Colorado's KSP project, Garibaldi's PSP project bordering the KSP and the Eskay Creek mine, and the King project (north and south) immediately north of the past-producing Snip mine.

Qualified person

John Buckle, PGeo, PGeoph, a qualified person as defined by NI 43-01 regulations, has reviewed and approved the scientific and technical disclosure in this news release.

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