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Top 10 Report Sample: Garibaldi Resources

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Q1-2014-squareadThe following is a sample of one of the ten companies covered in our previous report released in April.

The newest edition of the Tickerscores Top 10 will be released Sep 2nd and cover 10 stocks in over 60+ pages of depth.

Pre-order our Autumn 2014 report here and get a free copy of previous report.

Garibaldi Resources (GGI.V)

Editor’s note: This stock has been up $0.11 since the release of our April 2014 report, which is an increase of +67.7%.

Download a PDF version of this sample here.

Introduction

Garibaldi will be an exciting exploration stock to keep an eye on this summer. We expect several companies to be very active in the ‘Sheslay’ region of northwest British Columbia this summer. Garibaldi is the largest landholder in the region with 262 square kilometres of claims. An aggressive exploration program is planned starting early April. Phase 1 will include detailed mapping, geochemistry, induced polarization surveys, and drilling. Garibaldi is also active in Mexico sampling and drilling a couple projects but we expect the focus to shift to the ‘Grizzly’ project in BC.

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Financial

As of Oct 31,2013 Garibaldi was in a strong financial position with over $3 million in working capital. $700,130 of this was in cash and the remainder in investments. The investments consisted of 1,832,413 shares of Paramount Gold (PZG.T). An impressive fact is Garibaldi has not had to carry out a major financing since 2009 after selling a property to Paramount Gold ($400,000 cash and 6 million PZG shares). Financials for year-end 2013 are due to be out before the end of April.

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Management

Garibaldi is led by CEO Steve Regoci who owns 5,725,793 shares (9.8%). His background is an investment advisor so Steve he knows the importance of keeping a tight share structure. Steve pays himself $12,000 a month which we feel is generous. In total insiders own 17.2% of the common shares which is a very positive sign. The advisory board features Peter Megaw and Alain Charest who have excellent track records discovering deposits.

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Project

The Grizzly project is located in the ‘Sheslay’ region of NW British Columbia. Garibaldi originally acquired the ‘Grizzly’ in 2006 for 200,000 shares and a 2% NSR. Limited work has been done by Garibaldi since as they have focused on their properties in Mexico. The region heated up in mid to late 2013 though as Prosper Gold (PGX.V) and Doubleview Capital (DBV.V) carried out drill programs with promising results.
Garibaldi’s geologists consider the property to have excellent potential in an emerging copper-gold porphyry mining camp. Multiple targets have been found that appear interesting and will require further follow up before drill testing. BC is well known for copper-gold porphyries and this area has been relatively under-explored in the past.
Infrastructure up this way is limited and no road access is available to the property. The road to the former Golden Bear mine does pass through the southern part of the Grizzly property but would need to be rehabilitated. The best way presently to access the claims is via helicopter leaving from Dease Lake.

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The geology for the property looks promising as it is underlain by Late Triassic aged intrusive rocks and by sedimentary and volcanic rocks belonging to the Stuhini Group. According to Barr et al, 1976, these rock units comprise Late Triassic and Early Jurassic aged volcanic island arc assemblages which are the host for all of BC’s alkalic porphyry copper-gold deposits.

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The property is most likely under explored due to low grade copper-gold projects being sub-economic in the 1970’s. From previous exploration, all signs warrant further exploration is needed. Investors need to be cautious as all signs can look good but the drill rig is the ultimate validation machine. Keep this one on your watch list as exploration gets underway.

Mexico Projects

Garibaldi has several projects in Mexico which they are working on. Garibaldi owns its own drilling rig, which is located in Mexico and greatly reduces the cost of drilling.

Tonichi

Located in Sonora State, Mexico the project has a 500 sq. km land position. Garibaldi’s hyperspectral remote sensing technology has been a rapid, cost-effective method of identifying the best drill
targets throughout this strategic land package. Current drilling has returned assays that show mineralization but are low grade and would be considered uneconomic. Interesting to note that a private company is doing a pilot coal program elsewhere on the property. The coal mining is generating a small royalty for Garibaldi.

Outlook

We expect the area known as the ‘Sheslay’ region to be the hot area for junior exploration plays this summer. Garibaldi is well positioned in the area and management has already said they will be aggressive. If a few good drill holes come out of the area these stocks have potential for some big gains. Interesting to note is that companies in the area have relatively low floats and high insider ownership. Garibaldi is well financed and all set for a big summer up at the ‘Grizzly’ property.

The Top 10 Resource Stocks To Watch This Autumn

Q1-2014-squaread

On September 2nd, Tickerscores.com will release their Top 10 report on the best stocks to watch this autumn.

Our top 5 picks from the beginning of 2014 are up 59.3% year-to-date. Click below to get updates on our newest edition.

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About the Author:

Jeff is the President of Tickerscores.com and holds a BCom from the Sauder School of Business at UBC.

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