E&L, PSP AND KING PROJECTS

Size 17,000 hectares
Location Golden Triangle
Status 100% King, Options on E&L, PSP


E&L Map as of December 12, 2016




Garibaldi Controls More Than 200 Sq. Km in Key Area of Golden Triangle

Garibaldi recognized the significance of developments at Brucejack and KSM in the "Eskay" Camp more than seven years ago when it made the King Property its first acquisition in this world class district in northwest B.C.'s Golden Triangle.

During 2016, Garibaldi made additional critically important moves by acquiring the E&L deposit, 11 miles southwest of Eskay Creek, and expanding that land package to 63 sq. km. In addition, Garibaldi acquired the Palm Springs Project (PSP) while it also tripled the size of the King Project. In total, Garibaldi now controls more than 200 sq. km of prime exploration ground in the heart of this incredible district. A successful summer exploration program confirmed the E&L as the first magmatic Ni-Cu-PGE-Au-Co system in the district with nickel "tenor" of 4.8% to 8.0% and copper "tenor" of 2.1% to 10.9% in 100% sulphide. Drilling in 2017 will attempt to unlock the E&L's potential as a large-scale nickel and copper-rich massive sulphide deposit on the doorstep of other world class discoveries.


  


E&L Deposit = Tremendous Exploration Upside

After a series of work programs since July and an extensive initial review of large amounts of historical data, Garibaldi's geological team has determined that the E&L deposit has the potential for much greater scale as a nickel and copper-rich massive sulphide system than originally understood by explorers nearly half a century ago (see Oct. 14 and November 10, 2016, news releases). The property has never been systematically followed up on since an underground drill program was carried out in 1970.

Recent trenching at the E&L deposit by Garibaldi returned strong nickel and copper grades in addition to important platinum, palladium, gold and cobalt values in a pyrrhotite-pentlandite-chalcopyrite assemblage.

Significantly, the very high tenor of the sampled zone from outcrop at the top of Nickel Mountain confirms the E&L magmatic system has robust grade potential. This underscores the importance of the broad, untested Q magnetic anomaly approximately 800 metres south and 400 metres below the historical deposit.

Highlights from continuous channel sampling across the widest part of a 12-metre mineralized zone at E&L include:
  • 12 metres at 1.6% nickel and 1.57% copper (12.8% sulphide);
  • Includes 8 metres at 2.3% nickel and 2.2% copper (14.3% sulphide);
The potential extent of near-surface mineralization at the E&L, featuring a nickel-copper-rich halo around a large mafic core, was never adequately tested by today's standards and the deposit has not been delimited in any direction including at depth.

Advanced geophysical analysis suggests mineralization at Nickel Mountain may have a deep source or "feeder" zone, expressed by the "Q" anomaly, where metals may have concentrated;

Garibaldi considers the E&L to be a high-impact exploration target, especially in light of the exponential growth over the last decade in the understanding of how major deposits have formed in this prolific district. On November 30, 2016, the company welcomed nickel specialists Everett Makela, P.Geo., and Dr. Ray Goldie to its Advisory Board. Their renowned expertise in the nickel industry will lay the foundation for a systematic and aggressive exploration and development program of tasks, objectives and milestones at the E&L.


The "Q" Anomaly -- Massive Sulphide Source Indicated

A broad magnetic anomaly, referred to as the "Q" given its circular shape and an intriguing "keel", measures approximately 1 km wide and is centered immediately southwest of the historical E&L adit, 550 meters due south of the original discovery at the top of Nickel Mountain and 390 meters below the surface outcrop. The broad characteristics of the anomaly suggests it has a deep source. The "Q" was never drill-tested or systematically investigated by previous explorers who were drawn to the showings at the top of Nickel Mountain.

Significantly, the "Q" Anomaly features a 600-meter-long magnetic keel trending south-southeast.



As seen elsewhere in deposits around the globe, the keel or "tail" could represent a feeder or conduit zone to a nickel-rich massive sulphide system as expressed by the main magnetic anomaly interpreted by Garibaldi's geophysical consultants. Another possibility is that the broad anomaly results from a gabbroic intrusive body, since magnetic gabbro is host to the mineralization at the top of Nickel Mountain. If so, mineralization could be associated with the gabbro and in particular within the magnetic keel.



Historical Drilling: Nickel Grades Up to 5%

According to the B.C. Ministry of Energy and Mines MINFILE No. 104b006, the E&L has historic indicated and inferred resources estimated at 2.9 million tonnes grading 0.80% nickel, 0.62% copper, 0.34 g/t Au and 6.8 g/t Ag. There are also anomalous values in platinum group elements (Quartermain, R.A., 1987; Sharp, W.M., 1968). In its 1971 annual report, Silver Standard noted grades exceeding 1% Ni and 0.70% Cu over 100 feet with sections up to 10 feet returning 5% Ni and 1.5% Cu.

Cautionary statement: A Qualified Person, as defined by National Instrument 43-101, has not done sufficient work to classify the E&L historical estimates as current mineral resources or reserves. The company is not treating the historical estimates as current mineral resources. Grab samples are selective samples and are not representative of mineralization hosted on the property.

E&L-PSP Red Line Map (Jan. 20, 2017)


Palm Springs and King Properties

Recognizing the significance of developments rapidly unfolding in this district, where Pretium's Brucejack mine is slated to commence commercial production during the second half of 2017, Garibaldi announced the acquisition of the PSP Project (nearly 100 sq. km) and an expansion of the King Property to 46 sq. km on May 18, 2016.

PSP Project

Much of the Palm Springs Project 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, is leading Garibaldi's exploration efforts at Palm Springs.

Nearly 20 sq. km of the Palm Springs package is contiguous to the past producing Eskay Creek mine, one of the world's richest ore discoveries.



King Project

The expansion of the King has divided the project into King North and King South, two adjoining packages, with King South just several km northeast of the past producing Snip mine. Skeena Resources carried out a successful drill program at Snip last summer and early fall in an attempt to define new resources outside of the historical mined areas.

Geological studies completed by the British Columbia Geological Survey in 2011 concluded that the underexplored rock units extending north from the Iskut River encompassing the King Project are the same as those hosting the Snip, Eskay Creek and KSM deposits.

Recent extensions of the Iskut River access road, the completion of a bridge to the north side of the river, and the AltaGas Forrest Kerr and McLymont power stations will significantly reduce the cost of more extensive exploration at the King Project.



King North, featuring at least three mineralized zones, is more advanced than King South and includes some drilling around the time of the Eskay Creek discovery. As disclosed by Garibaldi April 12, 2016, limited trenching and sampling carried out by the company over an area identified in the 1980's at King North supports historical results. A high-grade interval in one North zone trench averaged 295 g/t Ag with 19.4% combined Pb-Zn over 6 meters across the strike of the mineralized zone.



The South zone at King North is also prospective for high-grade silver-lead-zinc mineralization while the Central zone has returned high-grade gold values from historical surface sampling at the Chubby Creek prospect.

King North is permitted for drilling. Information gathered from last summer's exploration program is being analyzed and an update on the King is expected during the first quarter of 2017.