The Financial Post reports in its Monday edition that Eric Sprott is keen on Garibaldi Resources. The Post's Gabriel Friedman writes that Garibaldi is in the earliest stages of exploring for nickel in British Columbia's Golden Triangle, an area that has been relentlessly explored and mined for a century without much nickel ever being found.
Nevertheless, Sprott was enamoured: He compared the area to Voisey's Bay, also a nickel deposit, and likely the largest metal discovery in Canada in the past 40 years. That find has turned out to be worth billions of dollars.
"It just keeps coming together," Mr. Sprott says.
Mr. Friedman notes that Garibaldi has never had any revenue. Mr. Sprott says: "If it's Voisey's Bay, why wouldn't I just stay the course here? Try to get as much money in as you can, to get as much return as you can."
For junior mining companies, it is basically stock in trade to always claim to be on the verge of an unprecedented major discovery and the endorsement of a billionaire can instantly put a junior on investors' radar. However, there are no guarantees of success in the high-risk, high reward world of mining exploration -- as Garibaldi's story has shown all too well so far.
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