Garibaldi advances on Nickel Mountain latest

Garibaldi Resources Corp. [GGI-TSXV, GGIFF-OTC] shares rallied Friday after the company released more impressive assay results from its 100%-owned Nickel Mountain project near Eskay Creek in northwestern British Columbia.

Garibaldi has previously said drilling in 2019 drill would focus on building out the five currently known mineralized zones at the E&L deposit (Discovery zone (Upper and Lower), Northeast Zone, Central Zone, and Northwest) outlined via 46 drill holes in 2017 and 2018.

The E&L system is wide open for expansion to the east, the west, the south, north and at depth, the company has said.

Results from five drill holes released on Friday include more robust nickel values and the highest copper and metal grades reported so far from the project.

Highlights include drill hole EL-19-71, which returned 7.94% nickel, 5.85% copper, 0.16% cobalt, 7.05 g/t palladium, 2.73 g/t platinum, 1.75 g/t gold and 15.81 g/t silver over 4.43 metres within 14.99 (estimated true width of 12 metres) highlighted by 5.25% nickel and 3.21% copper in the upper section of the Lower Discovery Zone (LDZ).

This hole cut massive sulphides from 142.5 metres to 157.5 metres, including a total of 4.9 metres of dykes and mineralization.

Drill hole EL-19-65 indicates there may be a distal mineralized zone enriched in copper and precious metals as 7.92% copper, 6.33 g/t palladium, 2.69 g/t platinum, 3.0 g/t gold, 40.0 g/t silver and 1.49% nickel were intersected in a chalcopyrite vein between 132.5 and 132.8 metres downhole within one of three wide intervals of mineralization in this hole.

Garibaldi shares advanced on the news, rising 6.4% or $0.06 to $1. The shares are currently trading in a 52-week range of 69 cents and $2.25.

Garibaldi vice-president, exploration Jeremy Hanson said the results emphasize persistent widespread nickel-copper mineralization at Nickel Mountain, which covers 6,300 hectares and is located to the southwest of the former Eskay Creek mine, which produced approximately 3.3 million ounces of gold and 160 million ounces of silver at average grades of 49.5 g/t gold and 2,406 g/t silver.

Eskay Creek was the world’s highest grade gold mine and the fifth largest silver mine by volume.

Interest in Nickel Mountain was triggered in the summer of 2017 when drill hole EL-17-14 intersected 8.3% nickel, 4.2% copper, 0.19% cobalt, 1.96 g/t platinum, 4.5 g/t palladium, 1.1 g/t gold, and 11.1 g/t silver over 16.75 metres starting just 100.4 metres downhole, within a broader 40.4 metre core length highlighted by 3.9% nickel and 2.4% copper.

On February 21, 2019, Garibaldi confirmed an even shallower new zone (Northeast zone) with drill hole EL-18-33 which returned 7.7% nickel and 2.95% copper over 4.8 metres within a broader interval of 49 metres grading 1.34% nickel and 0.89% copper (core length) plus cobalt, platinum, palladium, gold and silver.

Garibaldi said it has completed 38 diamond drill holes in 2019 covering 10,069 metres. “Significant new potential has been identified at depth while numerous open areas adjacent to known mineralization remain to be tested, the company said.

Results are pending from an additional 18 holes beyond the five reported in the latest news release.