PSP & King

Size 20,500 hectares
Location Golden Triangle
Status 100% King, Options on E&L, PSP

E&L Map as of August 10, 2017

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.


E&L Deposit

A successful 2016 summer exploration program confirmed the E&L as the first magmatic nickel-copper-rich massive sulphide system in the Eskay mining camp, featuring high nickel-copper tenors as well as platinum, palladium, cobalt and gold values in a pyrrhotite-pentlandite-chalcopyrite assemblage. Garibaldi geologists are now viewing the E&L at Nickel Mountain as a large-tonnage, high-grade exploration target within an intrusion defined over a length of 4 kilometers and a width of 1.5 kilometers.

Preliminary results from a 600 line kilometer VTEM survey completed in May 2017 support conclusions from reinterpreted historical data and fresh geological information collected by Garibaldi since last summer that sulphide mineralization at the E&L is much more widespread than originally understood.

An extensive field program at the E&L commences in June prior to a major summer drilling program aimed at confirming historical resources and discovering new zones of nickel-copper-rich sulphides. Nickel Mountain is in the immediate vicinity of such world class discoveries as Eskay Creek, Seabridge's KSM and Pretium's Brucejack high-grade gold mine that's scheduled to begin commercial production this year.

E&L Geologic Model

Highlights of recent E&L modeling:
  1. Using inversion analysis for the aeromagnetics, outcrop maps, diamond drilling and trenching information, a model has been created of the E&L as an irregular lobate body with chambers and bulges connected by conduit dykes and pipes. Mineralized zones encountered through historic drilling occur at the southern margin of the largest chamber, up-plunge of an interpreted pipe connecting to the “Q” magnetic anomaly area to the south. Overall, the interpreted morphology features very encouraging distinctive forms, suggesting numerous possible traps and depositional sites for massive sulphide accumulation.
  2. The E&L Intrusion features a younger sulphide mineralized olivine gabbro phase that has intruded a barren gabbro-diorite phase.  As reported in the Company’s November 10, 2016, news release, continuous channel sampling across the widest part of a 12-meter mineralized zone at the E&L gave a tenor range of 4.8% to 8% nickel and 2.1% to 10.9% copper for the E&L in 100% sulfide based on a six-meter section of semi-massive and massive sulphides.
  3. Rocks hosting the E&L Intrusion include Hazleton Group black shales, an abundant source of sulphur for the mineralizing process. A review of the abbreviated drill information available suggests that there may have been significant incorporation of country rocks during the E&L intrusive events.
  4. At a regional scale, massive gravity signatures (see January 30, 2017, news release) suggest that a deep seated crustal structure focused intrusion and emplacement of a large mafic parent for the E&L system. These are fundamental characteristics of numerous nickel camps worldwide, including Voisey’s Bay, Norils’k, Raglan and others.

E&L Geologic Model Slide 2

E&L Geologic Model Slide 3

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: Garibaldi believes the historic results at E&L provide an indication of the potential of the property and are relevant to ongoing exploration. The company cautions investors that a Qualified Person, as defined by NI-43-101, has not done sufficient work to classify the historic E&L deposit resource estimate (MINFILE 104B006) as current mineral resources or reserves. The estimate should not be relied upon until it has been verified and supported by an NI-43-101 report. The Company is not treating the historical estimate as current mineral resources, and there's no certainty that further exploration will result in the target being delineated as a mineral resource.

Eskay Camp Inner Core Area Map (Aug. 25, 2017)

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.