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BMR Evening Alert! - BullMarketRun.com

February 28, 2017

BMR Evening Alert!

It was an eventful day in the markets with the Dow snapping a 12-session winning skid while the TSX, even though it gave up 64 points, registered its 13th consecutive positive monthly return – a new record…

The price of Gold fell, so Gold stocks went up (they’ve been going in opposite directions recently), the Venture unwound a little more, and two Venture companies came out with fascinating news – one at the start of the trading day, leading to massive volume accompanied by a big price jump, and the other following the close…

Venture Chart Update

Don’t fret about the Venture’s 22-point pullback over the last 3 sessions – embrace the temporary weakness!…after a 19.5% advance since late December, the Index has decided to digest some of those gains as it’s “unwinding” in a healthy fashion which will set the stage for the next big wave to the upside…downside risk is limited to less than 6% from current levels given the powerful support band between 800 and 770

Saint Jean Carbon Inc. (SJL, TSX-V)

Pardon the pun, but Canadians who were able to put some Saint Jean Carbon (SJL, TSX-V) paper into their TFSA’s should manage to avoid a “Carbon Tax” (on their capital gains)…

SJL surged nearly 70% today on wild volume – 54 million shares – after announcing that it has received its first order from Panasonic Corp. to supply graphite anode material, in 2 different specifications, to its manufacturing facility…that’s a great customer to have as Panasonic of course is one of the largest battery manufacturers in the world, a supplier for the likes of Tesla, Toyota, Volkswagen and many other large corporations…

In situations like this, speculation often goes to extremes, so it’s hard to imagine that SJL’s move will stop at today’s 18.5 cent close…John’s long-term chart shows a very strong breakout above the 38.2% Fib. level and the 3rd fan line…

Garibaldi Resources Corp. (GGI, TSX-V)

Mining analyst Dr. Raymond Goldie wrote the book on Voisey’s Bay (“Inco Comes To Labrador”), so when he stated in an interview that Garibaldi Resources‘ (GGI, TSX-V) E&L Project is “the best Nickel sulphide prospect in Canada”, his words do carry weight…Goldie, in fact, was so impressed with the E&L, he recently opted to become a director of GGI

Today, following the market close, Garibaldi further strengthened the case that one of the most exciting drill programs in years in British Columbia is shaping up in the center of one of the world’s most prolific high-grade districts, the Eskay Heart of Gold Camp, with the E&L situated just 15 km southwest of Eskay Creek and almost exactly in between the past producing Snip mine and Pretium Resources‘ (PVG, TSX) incredible Brucejack deposit (soon to start commercial production) along a NW-SE trend…

Garibaldi has completed its modeling of the E&L deposit, concluding that “the first magmatic Nickel-Copper-rich massive sulphide system in the heart of Northwest British Columbia’s prolific Eskay mining camp reflects a much larger-scale intrusive event than ever previously envisioned.

Garibaldi geologists are now viewing the E&L as a large-tonnage, high-grade exploration target within an intrusion defined over a length of 4 km and a width of 1.5 km. 

“Given the compelling data, including indications the E&L Intrusion may host more than one Nickel-Copper-Cobalt sulphide deposit with associated precious metals and high tenors, the company is immediately proceeding with a full-scale heli-borne electromagnetic (EM) survey that can detect conductive sulphide bodies up to 350 m in depth (survey to be carried out as soon as weather conditions permit).”

Everett Makela, Garibaldi VP Exploration Canada, commented: “The Garibaldi team, in collaboration with industry leading consultants including geophysicist Alan King, have arrived at an E&L model with observations and interpretations that provide powerful encouragement for a Nickel-Copper-rich sulphide deposit, or series of deposits, in the center of a prolific mining camp that includes the past producing Eskay Creek and Snip mines, Seabridge’s massive KSM Copper-Gold porphyry deposit, and Pretium’s high-grade Brucejack Gold deposit on schedule to commence production this year.”

Images of the E&L 3D geologic model will be made public within the coming days…and there’s nothing like a VTEM survey in a situation like this to drive intense investor interest…

E&L “Checklist” Is Now Exceptionally Compelling!

  • Known deposit open in all directions (historical non-compliant near-surface resource based on 1960’s drilling)
  • Massive sulphides outcropping at top of Nickel Mountain (nearly 2,000 m, powerful system brought them up!)
  • E&L Intrusion is 4 km long, 1.5 km wide
  • Chambers and bulges connected by conduit dykes and pipes
  • Numerous possible traps and depositional sites for massive sulphide accumulation
  • Younger sulphide mineralized olivine gabbro phase has intruded a barren gabbro-diorite phase
  • The right mineral assemblage (pyrrhotite, chalcopyrite, pentlandite)
  • High tenors (4.8% to 8% Nickel, 2.1% to 10.9% Copper in 100% sulphide)
  • Sulphur source (Hazelton Group black shales) – crucial for Ni-Cu-PGE massive sulphide deposits and metal enrichment
  • “Q” magnetic anomaly with conduit-shaped “keel” 800 m south and 400 m below near-surface deposit (feeder zone?)
  • Tectonic setting (exciting crustal scale geodynamics!) – abrupt, disruptive, large-scale “events” have occurred (necessary for volume), an interpretation supported by massive gravity signatures (gravity anomalies are essential for major Nickel sulphide deposits)
  • District setting is unquestionably world class and one of the most mineralized parts of the entire planet with Brucejack, KSM, and past producing Eskay Creek and Snip deposits – if there’s anywhere in Canada where another Voisey’s Bay could have formed, this is it!
  • Infrastructure – more than $2 billion has been poured into the Heart of Gold Camp in the last few years to bring power, new roads and other key infrastructure into the area – lowering exploration costs and making new discoveries and new mines more likely
  • This list is sure to keep growing, especially after a VTEM survey!

Garibaldi bounced strongly off major support between 14 and 14.5 cents this morning, closing at 16.5 cents for a market cap of only $12.3 million

Keep in mind the following…

  1. Last year, the 3 juniors that drilled in the district – Colorado, Skeena Resources (SKE, TSX-V) and Tudor Gold (TUD, TSX-V) reached a combined average market cap high of nearly $100 million!
  2. On a broader scale, the 6 most active companies in the district – ones that drilled or didn’t drill – attained an average market cap high of almost $60 million!
  3. Even if one were to remove the Tudor Gold anomaly out of the equation, the above figures would come to approximately $65 million and $40 million, approximately
  4. At the other end of the country, in Labrador, Northern Shield ran to a $60 million market cap last year on a grassroots Ni-Cu-PGE prospect with VTEM conductors and surface samples but far less advanced than the E&L

The E&L & Kambalda Comparative – Video Clip

After today’s news, it’s worth going back to our 2nd video excerpt with Dr. Goldie (there have been 3 with 1 more to come) on how is it that a potential major Nickel-Copper-rich massive sulphide deposit could have been overlooked all these years in the Eskay Camp?…

Click on the arrow to view…


Note:  John, Jon and Daniel hold share positions in GGI.


  1. GGI – the helibourne EM survey will let them know immediately. If it lights up like a Christmas tree – look out, with what’s already kmown the masses will pour into GGI.

    Comment by Dan1 — March 1, 2017 @ 2:28 am

  2. Hi Gentlemen, How will garibaldi access this mountainous area in the winter months?
    What is the status of exploration permits to drill and encamp?
    Thank you

    Comment by donald — March 1, 2017 @ 4:37 am

  3. You can fly a VTEM at anytime, Donald…in this case, a couple days of relatively clear, cool conditions are preferable…that’s the window they’re looking for immediately…drilling of course would be over the summer…boots on the ground late May/early June…

    Comment by Jon - BMR — March 1, 2017 @ 5:16 am

  4. That it’ll be the final piece of confirming evidence, Dan1…people I’ve spoken to are very confident the EM survey is going to produce some juicy conductors and confirm the sulphides that are known to be there and reveal very positive information elsewhere including at depth…

    Comment by Jon - BMR — March 1, 2017 @ 5:21 am

  5. the fact that the model with in 7 days as stated is good,that means they want it out befour or during pdac,that will draw way more attention.

    Comment by Laddy — March 1, 2017 @ 5:56 am

  6. Laddy – And it’s possible the they will know what the VTEM is showing before they release the 3D models to the public. Probably why the delay in releasing it.

    Comment by Dan1 — March 1, 2017 @ 6:24 am

  7. That makes sense to me Dan1, as I agree that they would like to release both together to the public.

    Comment by pole — March 1, 2017 @ 6:44 am

  8. Jon
    how long does it take to get results back from a VTEM?

    Comment by GREGH — March 1, 2017 @ 5:20 pm

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