Garabaldi doesn't add up

Thanks to the BC Securities Commission, Garabaldi Resources (TSXV:GGI) has disclosed the drill hole coordinate and composite grade intervals that should have been in the drill results release.  Let's do a quick recap.  The company started making a lot of noise about a massive nickel discovery on September 1.  Assays were finally released on November 20 (more than 11 weeks after Sep. 1) in a news release that looked like it was hastily written and incomplete.  It then took another 9 days for the company to issue the full disclosure required by the BCSC.

Why would Garibaldi not want to be forthcoming with this information?  Perhaps, because the facts don't live up to the hype.  The Angry Geologist analyzes the data here and highlights that the massive sulphide intercepts are really quite small and appear to be confined to a small zone.  Stuff like this makes the Angry Geologist angry and you won't like him when he's angry!

I'd also like to point out some simple math.  In the Sep. 1 GGI news release, the company publicly stated that the first drill hole intersected two long intervals totaling 176 meters.

$16 million was raised on the back of this and other statements.  Who needs assays when you have core logging and XRF readers, right?  Well, let's see what the assay data, released almost three months later, came up with:

Add the intervals and you get 60.5+5.23+9.68+4.5=79.91 meters.  What happened to the two large intervals totaling 176 meters?  There seems to be about 96 meters of mineralization missing!  That is about the height of a 32 story building, which I would argue is not insignificant.

People lie.  Assays don't.  In this case, I doubt Garibaldi intentionally meant to mislead investors, but they should have known better than to make these statements in the first place.  Those pesky class action lawyers might start contacting the gullible investors who purchased shares at $4 or $5 per share and then the $16 million you raised might have to go to lawyers and settlements rather than into the ground.