Vancouver, British Columbia – August 5, 2014 – Further to its news releases of May 14, 2014, and June 19, 2014, Garibaldi Resources Corp. (TSX.V: GGI) (the "Company" or "Garibaldi") is pleased to report that several additional diamond drill holes have confirmed the discovery of a shallow, high-grade mineralized system with apparent open-pit potential at the Company's Silver Eagle target (Rodadero North Project) in central Sonora State, Mexico. A second stage of drilling is starting immediately with SE-14-07 and will continue through the Mexican rainy season.
Highlights:
- Drilling along almost 100 meters of strike length has returned significant high-grade silver intersections within 50 meters of surface, and mineralization remains open in all directions;
- SE-14-03 intersected 1,935 g/t Ag (62.2 oz/t) between 4 and 5 meters' depth while the most recent hole (SE-14-06) – the farthest step-out from previously reported discovery hole SE-14-01 – has produced the widest mineralized intercept to date;
- Surface sampling at three target areas immediately southeast and east of Silver Eagle has returned high-grade silver (up to 8,000 g/t Ag) in addition to high-grade gold (up to 52.6 g/t Au) as explained further in this update;
- As Garibaldi commences a second round of drilling at Silver Eagle, the total number of mineralized target areas within the 45 sq. km Rodadero North Project has increased from eight to 11.
Steve Regoci, Garibaldi President and CEO, commented: "The shallowness of this mineralization at Silver Eagle is striking, and that may have important implications as we continue to advance this target and the overall project. The potential scale of the mineralizing system at Rodadero North is evident by the number of 'hot spot' signatures defined by our hyperspectral remote sensing data. Follow-up surface sampling of these silicified zones and the excellent drill results at Silver Eagle suggest the possibility that some of these targets may be the collective surface expression of a very robust system.
"Given these exciting developments at Rodadero North, upcoming second stage drilling at the La Patilla Gold Property – another shallow potential deposit – and of course the Grizzly Cu-Au Porphyry Project that we're vigorously advancing to the drilling stage, this summer through year-end is shaping up to be the most active and dynamic period in our Company's history."
Silver Eagle Drilling
Of particular significance, the mineralized zone at Silver Eagle appears to widen to the south. Similar siliceous bodies are exposed for several hundred meters along a ridge to the south.
SE-14-03, collared 25 meters south of SE-14-01, intersected 11.45 meters of 266 g/t Ag including 1,935 g/t Ag (62.2 oz/t) at a depth between just 4.3 and 5.2 meters.
Meanwhile, SE-14-06, collared approximately 85 meters south of SE-14-01, returned a consistent, well-mineralized 24.4 meter section within 46.5 meters of surface, including 262 g/t Ag (8.4 oz/t) and 4.1% Pb over 4.6 meters.
The geometry of the mineralized zone at Silver Eagle is not yet clear after the limited drilling to date. Mineralization appears to be controlled by a steep tabular structure under the wider silicified zone exposed at the surface, but mineralization could also be controlled by a relatively flat lying zone within the silicified "cap". These possibilities are not mutually exclusive.
This second phase of drilling is designed to test the expansion of the mineralized zone to the south and at depth to the east, as well as test the base of the silicified zone in other areas.
Silver Eagle features excellent road and water access while power lines also run through the target area.
Significant Assay Results – Phase 1 Drilling (First 6 Holes) at Silver Eagle
Hole | From (m) | To (m) | Width (m) | Ag (g/t) | Ag (oz/t) |
|---|---|---|---|---|---|
SE-14-01 | 19.50 | 26.50 | 7.00 | 2,010 | 65.0 |
includes | 19.50 | 21.50 | 2.00 | 68.7 | 2.2 |
and | 21.50 | 22.50 | 1.00 | 7,633 | 245.4 |
and | 22.50 | 26.50 | 4.00 | 1,574 | 51.6 |
SE-14-02* | 0.00 | 5.00 | 5.00 | 106 | 3.4 |
SE-14-02A* | 0.00 | 9.00 | 9.00 | 144 | 4.6 |
includes | 0.00 | 3.00 | 3.00 | 269 | 8.7 |
SE-14-02B* | 0.00 | 10.63 | 10.63 | 115 | 3.7 |
includes | 0.00 | 6.80 | 6.80 | 171 | 5.5 |
SE-14-03 | 3.05 | 14.50 | 11.45 | 266 | 8.6 |
includes | 3.05 | 4.33 | 1.28 | 222.9 | 7.2 |
and | 4.33 | 5.20 | 0.87 | 1,935 | 62.2 |
and | 5.20 | 9.90 | 9.30 | 116 | 3.7 |
SE-14-04 | 30.20 | 36.30 | 6.10 | 203 | 6.5 |
includes | 31.20 | 32.50 | 1.30 | 860 | 27.7 |
SE-14-06 | 22.10 | 46.50 | 24.40 | 87 | 2.8 |
includes | 27.57 | 46.50 | 18.93 | 104 | 3.3 |
includes | 35.80 | 40.40 | 4.60 | 262 | 8.4 |
Above widths are downhole core lengths (431 meters in total was completed) and true width for the drill intercepts remains to be determined. A cut-off of 20 g/t Ag was used for all intercepts. Grades have been converted from g/metric ton to oz/metric ton; conversion to oz/short ton would result in a slightly lower number.
*Holes SE-14-02 and 2A experienced technical issues and were stopped short; only 2B was completed to the target depth.
All holes contained intersections with elevated levels of lead and zinc ranging from anomalous to as high as 6.1% Pb and 2.1% Zn over 1.3 meters in SE-14-04.
Hole SE-14-05 was drilled to offset mineralization in holes SE-14-01 and SE-14-04 to the north. SE-14-05 was drilled at a different orientation than the other holes and cut a zone of silicification but with low silver values. More work is needed to determine the possible orientation of a mineralized body extending to the north.
Updated Maps
An updated Rodadero Project map can be viewed later today by going to the following web site URL:
http://www.garibaldiresources.com/i/maps/Rodadero/RodaderoProjectMap.pdf
A Silver Eagle map showing locations for drill holes SE-14-01 through SE-14-06, along with the updated Rodadero Project map, will be available later today in the Mexico section under "Rodadero" at GaribaldiResources.com
Surface Sampling Returns High-Grade Silver and Gold Near Silver Eagle
Distinct from the two most northern targets La Guata and Batuc at Rodadero North, a group of eight targets strike to the south, southeast and east of Silver Eagle. This cluster, which includes new targets La Tortuga, Reales and La Estrella, is situated within a 30 sq. km area forming the lower two-thirds of Rodadero North, and exhibits common mineralogical features.
Initial sampling prior to drilling at Silver Eagle consistently returned high-grade silver exclusively (see June 19, 2014 news release), whereas sampling at La Tortuga, Igualama and La Fortuna has encountered both high-grade silver and high-grade gold. Of a total of 218 samples from those areas, 24 returned silver values greater than 200 g/t while 17 returned gold values of 3 g/t or more. Assays ranged from below detection to as high as 8,000 g/t Ag and 52.6 g/t Au from selected vein and dump samples. The average values for all samples were 121 g/t Ag and 0.98 g/t Au, respectively.
Reales, immediately to the south of Silver Eagle (within 1,000 meters), gave very encouraging hyperspectral signatures and shows areas of silicification similar to those seen at Silver Eagle.
Data from Reales and other target areas are being received and interpreted, and the Company looks forward to releasing additional results in the near future. The relationships among all the targets identified so far at Rodadero North are a focus of the ongoing exploration program.
By the nature of the biases of sampling, the above sampling results are not necessarily representative of mineralization at Rodadero North in general or, specifically, within the zones, structures or geological features that were sampled.
Cautionary Note
While Garibaldi is highly encouraged by these initial drill results and other data collected at Silver Eagle and elsewhere at Rodadero to date, there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in any of the targets being delineated as a resource.
Quality Assurance & Control
Garibaldi maintains strict QA-QC protocols for all aspects of its exploration programs that include the systematic insertion of blanks and standards into each sample batch. Acme Labs (now part of the Bureau Veritis group that includes BSI Inspectorate) performed assay analyses on core reported in this release, and ALS Global (formerly ALS Chemex) performed analyses on rock samples. All samples were assayed using certified and industry standard assay techniques for gold and multi-element packages for other elements and for over-limits. Au was analyzed by 30 or 50 gram fire assay with an atomic absorption finish, and other elements were analyzed by multi-element ICP. Samples in excess of 1,500 g/t Ag were analyzed by gravimetric methods.
Qualified Person
Dr. Craig Gibson, Certified Professional Geologist and a director of Garibaldi, is a non-arms length Qualified Person for the Company's Mexico projects and the direct manager of the technical programs operated under contract by Prospeccion Y Desorrollo Minera del Norte (ProDeMin). Dr. Gibson has reviewed this news release and approved the content thereof.
About Garibaldi
Garibaldi Resources Corp. is an active Canadian-based junior exploration company focused on creating shareholder value through discoveries and strategic development of its assets in some of the most prolific mining regions in Mexico and British Columbia.
We seek safe harbor.
GARIBALDI RESOURCES CORP.
Per: "Steve Regoci"
Steve Regoci, President
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or the accuracy of this release.
