Update GGI - Comments from Eric Sprott & Eric Muschinski GGI saw a major hammer low when it reversed on Friday afternoon. First, we had a report released online by Dr Peter Lightfoot regarding Nickel Mountain:
https://www.garibaldiresources.com/i/pdf/Nickel_Mountain_Lightfoot_Presentation_Aug_17.pdf
Perhaps even more influential were comments on Garibaldi made by Eric Sprott on his weekly radio show update:
Eric Sprott 8/17/2018
"I'd hate to think that some people are selling their shares down here, when we might have one of the greatest ore bodies of all time."
"I can't buy anymore. And I'm very very frustrated I can't buy more, because believe me, if I could buy more, I'd buy more."
Craig: Garibaldi was one that you liked, do you still feel good about that?
Sprott:
Well I do, and it's gone down quite a bit.
And I'm a 20% owner. Being an over 20% owner, I'm allowed in a 1 year timeline to buy 5 private purchases, which I've now done.
And I don't know what percent I own, 23% or 24%.
But I can't buy anymore. And I'm very very frustrated I can't buy more, because believe me, if I could buy more, I'd buy more.
When I look at the trading every day, I look at the number of trades by dealers, and I'm looking if there's a big seller here, the biggest guy sold all of 20,000 shares.
20,000 shares of a $2.50 stock is like $50,000. Like big deal. You know, and he knocks the stock down by 5%.
What happens if I could just go in there and put a bid in?
You know? And it wouldn't be for 20,000 shares.
So anyway, and I'm having listened to some of the interviews of people on the ground there, I'm pretty excited about what will happen when we finally get the news release about it.
We're all getting a little impatient about it and I guess I find myself in that camp.
I'd hate to think that some people are selling their shares down here, when we might have one of the greatest ore bodies of all time.
Hopefully there will be a press release sooner or later that takes us there.
I'm excited about it, it's funny to be excited about a stock that's hitting new lows, but I am.
Craig: It's remarkable like you said, someone selling what seems like a lot of shares to them, but it's nothing.
*Back to Eric Muschinski:
Garibaldi released their first batch of drill results last year in late July. However, they wanted to rush them out as it was an initial discovery and they needed to raise funds to drill further, later in the season. In 2018, they are cashed up with a $25M war chest and can take their sweet time.
There is no question that the CEO knows what everyone wants to see is tonnage. And he knows that the first pitch for the season will set the tone so I am not surprised that it's taking longer than people were expecting to release the first batch of assays. I simply don't think it's worth trying to read into very much whether this timing "means anything" in and of itself, we just don't know until we see the news!
I believe the odds are in favor of an explosive first release with the stock opening up huge. So, place some bets beforehand because if it's a frenzy to get in (again), that's when it will happen, and there could be a long line to get in at much higher prices.
Metallis Resources is my largest bet in the Golden Triangle and I am expecting some news from them any day now. First, assays from gold/copper targets in the south should be out very soon. They also are quite likely drilling now at Thunder North, where I'm expecting them to hit massive nickel/copper sulphides early in the season. If/when that happens, it's game over for MTS! Garibaldi will very likely make a run to acquire them instantly, or someone else will come along and take a big stake.
There is a still a decent chance that the feeder zone from GGI's discovery last year is on Metallis's side of the fence, we just don't know yet. But, we have only 12% of the market cap at MTS vs GGI so these valuations closing the gap is something that I think is very possible this season. Plus, the gold/copper targets in the south are no joke as well and could justify a higher market cap just on those results.
The clock is ticking and I'm loaded up on these two stocks, that have the potential to spark a new rally in the entire TSX Venture Exchange, which could use a massive discovery to set it off once again. We'll see what happens but I'm quite excited about the next few weeks.