TSXV: GGI
OTC: GGIFF
Frankfurt: RQM
VANCOUVER, May 18, 2016 /CNW/ - Recognizing the significance
of developments rapidly unfolding in a key part of northwest
British Columbia's Golden Triangle
that hosts the high-grade Valley of the Kings mine slated for
production in 2017, Garibaldi Resources (TSX.V: GGI) (the "Company"
or "Garibaldi") is pleased to announce that it has increased its
landholdings in this prolific district by nearly 10-fold through
the following transactions:
- Garibaldi has executed an option to acquire up to a 95%
interest in the 8,070-hectare Palm Springs Property (PSP), a
high-grade gold and Eskay Creek-type
target located 5 km northwest of the past producing world class
Eskay Creek mine and contiguous to
Tudor Gold's Eskay North Property (see attached map);
- Garibaldi has staked an additional 1,770 hectares of claims
adjoining the northeast boundary of Barrick
Gold's historic Eskay Creek
mine;
- Garibaldi has tripled the size of its King Property,
immediately north of the past producing high-grade Snip gold mine,
by purchasing an additional 17 claims (King South) covering
approximately 3,052 hectares contiguous to the southern border of
the King. This property now comprises 46 sq. km.
King North Drill Permits
Garibaldi is also pleased to report that it's in receipt of
drill permits from the B.C. Ministry of Energy & Mines for its
original King ground (now referred to as King North) where recent trenching results
included average grades of 295 g/t Ag and 19.4%
combined Pb-Zn over 6 metres across the strike of a
mineralized zone. King North
also features high-grade gold and copper mineralization over
several target zones.
Palm Springs Property
Much of the Palm Springs Property has been impacted by receding
glaciers, exposing previously hidden favorable volcano-sedimentary
stratigraphy similar to Eskay Creek.
Historic surface sampling by Noranda returned high-grade gold and
copper values and revealed unique Eskay
Creek-type pathfinder minerals in trenches and outcrops
below the Palm Springs showing. Mr. John
Buckle, P.Geo., P.Geoph., who has been responsible for the
discovery of several mineral deposits, will lead the upcoming
exploration effort at Palm Springs.
Steve Regoci, Garibaldi President
and CEO, commented: "We've been in this world class camp since 2009
and carefully deliberated the best areas to target for expansion
given the recent infrastructure improvements and new surface
discoveries brought on by significant glacial retreat. It promises
to be a very busy and exciting summer in this district given
multiple upcoming drill programs, construction of the Pretium mine
and continued advancement of the Seabridge KSM Project. With
the expansion of the King, and the acquisition of the Palm Springs
Property which has many Eskay Creek
characteristics, we believe we have strategically positioned our
shareholders to capture maximum value from our upcoming exploration
programs and the broader regional dynamics."
Palm Springs Property (PSP) Deal
Garibaldi can acquire up to a 60% undivided interest in PSP from
Decoors Mining Corp., a private arms-length British Columbia company, by completing the
following:
1)
|
A cash payment of
$10,000 CDN to Decoors;
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|
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2)
|
Issuing 100,000
shares of Garibaldi to Decoors within ten (10) days of approval of
this transaction from the TSX Venture Exchange;
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3)
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Issuing to Decoors up
to 1,400,000 shares of Garibaldi over a 4-year schedule and
incurring exploration expenditures on the property totaling
$2,100,000 CDN by the 4th year of the option.
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Garibaldi can earn an additional 15% undivided interest in PSP
as follows:
1)
|
Issuing an additional
2,000,000 shares of Garibaldi to Decoors on or before the
4th anniversary of the option.
|
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After satisfying the second option, Garibaldi may earn an
additional 20% undivided interest (totaling 95%) as follows:
1)
|
Paying Decoors an
additional sum of $2,000,000 CDN cash at any time at its sole
discretion.
|
|
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The Optionee retains a 2% NSR, half of which Garibaldi may
purchase at any time for $1,000,000
CDN.
King South Deal
Garibaldi has purchased a 100% interest in the King South claims
in exchange for 300,000 shares of the Company, subject only to a 2%
NSR in favor of the Vendor. Garibaldi may purchase half of the NSR
at any time for $1,000,000.
Area Maps
Two new maps for this prolific camp will be posted shortly on
the Company's homepage, or visit the following URL's:
http://www.marketsmartnewsletter.com/Garibaldi/GGIAreaPlayMapMay18.pdf
http://www.marketsmartnewsletter.com/Garibaldi/GGIPSPMapGoogleEarthMay18.pdf
Qualified Person
Mr. John Buckle, P.Geo.,
P.Geoph., a Qualified Person as defined by NI-43-01 regulations,
has reviewed and approved the scientific and technical disclosure
in this news release.
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.
SOURCE Garibaldi Resources Corp.