Robin, I agree and Gwen Preston comments so true. When I last talked to Ron, he was expecting a drill map soon to make more sense of this, but nothing yet, so one can not even get a good handle on what results mean, what angle? how close were other holes? same direction? I too sold the last of mine, with most unloaded on way up
Yes I'm a subscriber to Gwen's Maven letter as well as James Kwantes Resource Opportunities who had similar skeptical comments as Gwen's Maven letter.
I've sold most of my GGI on the way up and some now on the way down. Down to less than 10% of my original position.
Wow! this one seems way over hyped and glad that I loaded up before the train left. Has helped keep my head above water with favorites like Zonte getting killed (adding to that one of course at current lows).
Glad to be mostly out of GGI. Has a bad smell about it. I'd rather play in a different sand box.
So Garibaldi Resources (TSXV: GGI) finally put out results – real numbers, not visual descriptions – for its first four holes. The numbers themselves were ok. The highlight intercept came from hole 4, which cut 48 metres grading 1.1% nickel, 0.69% copper, 0.38 g/t palladium, 0.23 g/t platinum, and sniffs of gold, silver, and cobalt from 108 metres depth. The hit includes 4.8 metres of 7.2% nickel and 3.4% copper.
The other three holes returned intervals 18 to 60 metres grading 0.54% to 0.91% nickel.
That’s all fine. It may even be geologically interesting. But there is such a lack of information that I can’t tell.
The project information on GGI’s website hasn’t been updated since May. The only explanation of its geologic theory is an image with a large purple blob that supposedly models the conceptual magma chamber based on magnetics, mapping, trenching, and a few historic holes. With a complete absence of further information or proof, the ‘blob’ is unsubstantiated geophysical arm waving.
So I look for the corporate presentation for more information. Corporate presentations are the go-to source of information on a company, the package of slides that summarizes where, why, what, and how the story works, from corporate structure and management bios to geophysics, drilling, mapping, trenching, modeling, project history, and exploration thesis.
Except that GGI doesn’t have one. There is no corporate presentation. I looked and looked. It’s a stunning gap.
The news release itself is a piece of work. This is a stock that gained 550% over 2.5 months based on visual descriptions of nickel-copper sulphides in core. Over those 2.5 months the company didn’t hold back from promoting those descriptions, in fact using them to raise no less than $21 million.
Clearly the one piece of information now needed, the one thing the market had to see, was a result. An assay showing that their geologists had described the minerals accurately. A single piece of hard data.
So what does GGI do when it has that data in hand? It spends the first 13 paragraphs of its news release talking up another visual description from a newly completed, unassayed hole. It uses words like massive sulphide as often as possible and the ninth paragraph even says Nickel Mountain is showing similarities to Noril’sk, the largest deposit in the world of the kind GGI seeks.
And there were no maps. This is a drill results news release and there were NO maps of where the holes were drilled, let alone cross sections showing how the intercepts relate. It is impossible to understand the significance of an intercept without a map.
They did spend a few paragraphs talking about how the good intercept, from hole 4, “is in the immediate vicinity” of the massive sulphides in hole 14, the newly drilled hole that they describe as choc-a-bloc with massive sulphides. But without a map I have no idea what they mean by proximal.
The structure of the news release is nothing less than shocking. I am shocked that a management team would frame its results in such a promotional manner in any circumstance, but it is especially alarming in this situation, when so many eyes are on the stock.
Moreover, the information that I want clearly exists. The company is drilling. They have drill maps and are developing cross sections, because that’s the basic work an explorer does with its data to piece together a geologic picture.
And I would guess that some people have seen the maps, cross sections, and so on. Eric Sprott invested $5 million in this deal. He would not have done so based on the highly limited publicly available information. In fact I was recently chatting with another company exec who had pitched Eric Sprott on investing in his deal. Sprott’s answer was that he is only investing in projects where he sees clear potential for 10 million ounces, or the equivalent in base metals. He thinks he’s got one in Novo and another in Garibaldi.
That statement had to be grounded in information that the rest of us aren’t seeing, cause what we are seeing is little more than arm waving and promotion.
I am even more shocked – and dismayed – that regulators approved Garibaldi’s news release. These are the same regulators that will back-and-forth with a company for weeks over detailed wording in a technical report out of concern it is too promotional, or that won’t allow a company to even disclose that a resource exists if it was calculated under London or Johannesburg regulations. And yet somehow this GGI insanity is ok?
There are some very good names associated with Garibaldi. Raymond Goldie is on the board; he had a long distinguished career as a mining analyst. Peter Lightfoot is a highly regarded geologist in academic circles and is an advisor. (Peter Megaw, the genius behind MAG Silver’s Juanicipio discovery, is also listed as an advisor but tells me he has only advised on GGI’s Mexican projects and has nothing to do with Nickel Mountain). John Buckle has a record of discoveries and is listed as a consultant.
These names would usually lend credibility, but in this case the lack of information and crazy promotional approach are too much to be balanced by a few good names.
I’m not here to say there’s nothing at Nickel Mountain. There might be. Those first few holes included some interesting numbers. But the way this story is being presented is scandalous.
This is from Mark at IKN, live from LatAm. He of course tends to be very cynical but is often on the money: (I've sold most of my GGI and also retain a smallish position but am glad I'm mostly out as I think at this point there are better speculations including many mentioned on this blog and recommended by Ron)
From IKN post this morning (nothing we didn't know of course)
Garibaldi (GGI.v) and New Nadina (NNA.v)
Posted: 20 Nov 2017 05:27 PM PST
It didn't go unnoticed the way Garibaldi bamboozled the market.
1) Quietly talk up drilling results as they happen. "Hey there, I've heard that..."
2) Get the dumbass end of the mining world vomiting in chatrooms about the "next Voisey's" or whatever other phrase to get the circlejerk underway
3) Release a cherrypicked photo or two. Fapfest
4) Stoke up the tension for weeks. Fappity fappity
5) Run a placement and fill coffers. Ka-Ching!
6) Finally release an assay that doesn't live up to the hype. Oh.
7) Keep em hanging on with "Not our fault it's cold in the winter, next year gonna be (etc)".
Check out New Nadina Explorations (NNA.v):
4) In progress
5) In progress
6) Coming soon
7) Coming soon
Garibaldi Resources (GGI.v): So let me get this straight
Posted: 20 Nov 2017 08:43 AM PST
A market cap of C$450m+ for "We think we can find the feeder next year". Is that right?
This is the drill news from Sept 1st that drove the stock from $1 to over $2
Garibaldi Resources Corp. has intersected two long intervals of nickel-copper sulphide mineralization totalling 176 metres and consisting of pyrrhotite-pentlandite-chalcopyrite in the first drill hole at its 100-per-cent-owned E&L project at Nickel Mountain near Eskay Creek. Drilling of the second hole begins imminently.
Here is the reality of EL 17-01, probably not economic at these kind of depths?
Encouragingly, the hole intersected two long core intervals of disseminated sulphide mineralization totaling 176 meters to a depth of 332 meters, highlighted by a 60.5-meter section grading 0.54% nickel and 0.53% copper. Higher grades of copper (0.80%), palladium (1.26 g/t), platinum (0.60 g/t) and gold (0.60 g/t) were intersected over 4.5 meters starting at 279.5 meters within a broad disseminated zone.
I sold some earlier today at $3.92 but should have sold closer to open.
I may buy back what I sold today back if stock gets cheap enough.
Still holding about 10% of my original position bought in the 10-15 cent range.
Thank God for GGI and Ron's original recommendation else I'd really be in the poor house as this digestion in juniors from last years run has been quite brutal with many of last years gold stock prices off 50% or more.
Tough place to play marbles particularly as in my case as I'm retired.
Thanks everyone for your great posts in this site and thanks Ron for all your hard work.
There are a few observations on the chart. There is a triple top around $5 and that will now be very difficult to over come. Quite possible a significant correction might take grip. Support is around $3.30 and if the stock falls below that wit will probably trade down to around $2.00 and fill the gap between $2.20 and $3.20.