Nickel Mountain Ztem Survey Identifies New Pipe-Like Target

Research, News, and Market Data on Garibaldi Resources

Vancouver, British Columbia, April 21, 2022 – Garibaldi Resources (TSXV: GGI) (the “Company” or “Garibaldi”) is pleased to announce that further to the company’s 2021 ZTEM survey results (see news release March 31, 2022) at Nickel Mountain in the Eskay Camp of northwest British Columbia, 3D processing has identified several new low-resistivity ZTEM responses located 5 km northeast of the E&L nickel-copper-cobalt massive sulphide zone, including an exciting new anomaly at target B1/White Fox.

The flagship E&L project generated especially promising deep penetrating ZTEM data providing renewed focus on several drill targets to test the large geophysical anomalies beneath and along trend from E&L, for mineralization. The ZTEM survey over the remainder of the claim group also identified an unexpected alignment of high priority targets, with similar features. The B1 ZTEM anomaly which rises from a great depth like E&L, extends vertically up to the B1 VTEM conductor near surface.

Several other features elevate the B1 target to high priority status besides the coincidence of a ZTEM anomaly with a VTEM conductor. The presence of gabbroic intrusions of the Nickel Mountain Complex, and numerous in-situ surface samples and mineralized boulder train samples with elevated copper, zinc and lead over a broad 3km strike length. Also, elevated MgO concentrations up to levels found at the E&L intrusion, along with anomalous nickel, indicating the potential for magmatic sulphides.

The ZTEM data for the B1 target, which has not been drill tested provides a key target for the 2022 property scale field program which is highlighted by the following observations:

• The property-wide ZTEM survey has identified several low-resistivity responses that plunge to considerable depth, and also correlate with the location of near surface conductors from the 2017 and 2018 VTEM surveys. Coinciding ZTEM and VTEM anomalies offer strong support for the B1 target. The ZTEM response rising to surface from great depth, may be highly significant.
• Similar low-resistivity responses to those beneath the E&L mineralized zones continue along a 15 km long trend of gabbroic intrusions within the Hazelton Group, striking to the northeast towards Mount Shirley. A corridor within this belt of coincident ZTEM-VTEM responses with clusters of samples containing elevated Base Metals, aligns over a 3 km trend.
• The modelled ZTEM responses along strike coincides with base metal assays from in-situ samples and boulder trains with elevated nickel, copper and zinc. Additional conductive data supports an alignment along the northeast strike of E&L extending over and continuing past B1.

The primary exploration focus will be on the robust ZTEM-VTEM targets supported by geochemistry, and located along strike from E&L. Garibaldi will provide shareholders with more forthcoming analysis of the most prominent amongst the notable dozen new ZTEM anomalies at Nickel Mountain, as they become available.

Figure 1 Anomaly B1: White Fox displays a consistent ZTEM low resistivity zone coincident with a near surface VTEM conductive anomaly. The ZTEM low resistivity zone extends to great depths, similar to the low resistivity zone beneath E&L.

Jeremy Hanson, Garibaldi’s VP Exploration, stated: “We now have numerous ZTEM anomalies corresponding to VTEM conductors, coupled with elevated surface base metal content in samples along a significant trend. This season we will be able to hone in on the highest priority targets, for possible drill testing, likely starting with B1.”

Steve Regoci, Garibaldi’s CEO, stated: “We look forward to a very productive 2022 exploration season, better than expected ZTEM results have identified over a dozen significant ZTEM responses to test. These prospective targets beginning at E&L are large with deep roots, providing significant potential for further discoveries at Nickel Mountain as strong nickel and battery metal prices continue rising.”

Please see www.garibaldiresources.com/investor/presentations/ for more details.

Qualified Person

James Hutter, P.Geo., qualified person as defined by NI- 43-101, has supervised the preparation of and reviewed and approved of the disclosure of information 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 British Columbia and Mexico.

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

Image: James St. John (Flickr)

Adding Precious Metal Exposure to Your Portfolio? Gold Royalty Company Considerations

Investors have many options to gain exposure to gold. They may purchase gold bullion, gold coins, gold exchange-traded funds (ETF) and mutual funds, gold mining companies, or gold futures and options. Publicly traded equities of gold producers and royalty companies may offer an attractive way to invest given the disproportionate percentage impact higher commodity prices may have on a company’s bottom line and valuation for a given percentage increase in the commodity itself. While most investors are likely familiar with mining companies and how they operate, royalty companies may be less familiar.

What is a Gold Royalty?

A gold royalty is a contract that gives the owner the right to a percentage of gold production or revenue. Since royalties typically cover the life of a mine, gold royalty companies benefit from the exploration upside that may extend the life of a mine and thus increase the amount of gold or revenue they receive from the mining company at no additional cost.

There are several ways to generate royalties. First, royalty businesses may help finance a development project in exchange for a royalty. Second, a royalty business may purchase existing royalties from third parties, and 3) a royalty company may take a property that they already own, sell it to a mining company, and retain a royalty on the property.

There are several types of royalties. The two most common are NSR and NPI royalties. A net smelter return (NSR) royalty is an agreement where the mining company agrees to pay the royalty owner a percentage of the revenue, less refining and smelting costs. A net profit interest (NPI) royalty entitles the royalty owner to a percentage of the profit from a mine.

A stream is a purchase agreement that provides the owner of the stream, in exchange for an upfront payment, the right to purchase all or a portion of one or more metals produced from a mine at a negotiated price for the life of the agreement. The negotiated price is generally at a significant discount to the spot price.

Royalty Company Advantages

Compared with investing in gold production companies, royalty businesses generally benefit from low overhead costs, geographically diversified asset portfolios, and exposure to multiple operators.  Additionally, they avoid costly exploration expense which is borne by operators while sharing the benefit and upside of exploration investment in properties where they retain a royalty interest.  Like mining companies, royalty businesses offer greater leverage to changes in gold prices than investing in bullion.  Lastly, royalty businesses generally seek to build portfolios of producing royalties that support dividend payments to shareholders. 

Investors in gold royalty companies understand that revenues increase with rising gold prices, increasing production on its royalty properties, and a growing royalty portfolio, while costs remain relatively fixed and stable. These various scenarios position royalty companies to thrive in good markets and weather more challenging sets of circumstances.

As a royalty company grows, it offers the potential for multiple expansion, dividend payments, and the ability to execute larger transactions which could accelerate its growth. Junior royalty companies generally perform well in their early years since they can grow rapidly based on an increasing capacity to transact larger deals. Additionally, junior royalty companies may become attractive acquisition candidates for a larger royalty company seeking to enlarge its royalty portfolio.

Investor Considerations

It is important for investors to keep several factors in mind when conducting due diligence on prospective royalty company investments. These include: 1) management, 2) asset portfolio, 3) asset quality, 4) jurisdiction, and 5) valuation.

Management – Should you bet on the horse or the jockey? It is important to evaluate management’s history and track record of creating value for shareholders. Does the management team reflect a balance of technical, financial, legal, and capital markets expertise? Is the board of directors comprised mostly of independent directors who provide a diversity of relevant experience and perspectives? Do they articulate clear objectives, and is their business model sound? Most importantly, do they focus on areas they know and employ a disciplined growth strategy, or are they seeking growth at any price?

Asset Portfolio – How is the company’s asset portfolio balanced between royalties that are producing cash flow streams versus royalties that are expected to produce cash flow within five years and/or longer?

Asset Quality – Because royalty companies have little control over the decisions of the mining companies that control the properties on which the royalty interest is held, it is important for investors to evaluate the operators associated with the properties in the royalty portfolio. Are they well-capitalized major mining companies or small start-ups? Additionally, it is helpful to evaluate mineral resource estimates associated with properties in the portfolio and the operators’ plans for development.     

Jurisdiction – While geographic diversity is a selling point for most royalty companies, it is often helpful to consult the Fraser Institute’s Annual Survey of Mining Companies to check if royalty interests are in favorable mining jurisdictions versus high-risk areas.

Valuation – Royalty companies are often valued based on price to net asset value. Net asset value is the net present value (NPV) or discounted cash flow (DCF) of all future cash flow of a mining asset, less any debt plus cash. Price to net asset value is the company’s market capitalization divided by the net present value of all mining assets minus net debt. For those that pay a dividend, investors may also compare dividend growth rates and yield. Larger companies generally trade at higher valuation multiples which generally increase with scale due to lower perceived risk due to greater asset diversification and a proven track record of growth. As royalty companies grow, they may be able to establish and grow dividends to shareholders, offer greater liquidity due to listings on major exchanges, and benefit from broader research. Some may also benefit from their inclusion in stock indices. For those that pay a dividend, it is important to know whether the dividend is paid from operating cash flow or whether the company is borrowing to pay the dividend.

Take-Away

Just as with other classes of equities, mining royalty company investing has categories and nuances within those categories that separate one from the other. Investors should be mindful of each of these and find respected sources of information on the particular names they are considering. Channelchek can be a goldmine of information when searching for companies, understanding their business, and looking at their numbers.

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4 Reasons Why We Believe in Royalty Companies

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Alvopetro Announces Discovery at 182-C1 Well

Research, News, and Market Data on Alvopetro Energy

CALGARY, AB, April 21, 2022 /CNW/ – Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces that we have completed drilling the 182-C1 well on our 100% owned and operated Block 182 in the Recôncavo basin. Based on open-hole wireline logs the well has discovered 25 metres of potential net natural gas pay, with an average porosity of 8.2%.

President and CEO, Corey Ruttan commented:

“Preliminary drilling results from our 182-C1 well represent the first successful step in our organic growth strategy to expand our natural gas business in Brazil. We are currently increasing the capacity of our gas processing facility and we look forward to testing this well to understand the full development and production growth potential relating to this exciting new discovery.”

The 182-C1 well was spud on March 2, 2022 and drilled to a total measured depth (“MD”) of 2,926 metres. Two open-hole logging runs were completed and based on the open-hole logs, the 182-C1 well encountered a 36-metre-thick Agua Grande Formation sand at 2,550 to 2,586 metres total vertical depth with 25 metres of potential net natural gas pay, at an average 34% water saturation and average porosity of 8.2%, using a 6% porosity cut-off, 50% Vshale cut-off and 50% water saturation cut-off.  Neutron-density crossover on logs is interpreted to be reflective of natural gas pay but will be confirmed with well testing.

The primary and secondary targets of the 182-C1 well were the Agua Grande and Sergi Formations, respectively. Based on preliminary drilling results, the 182-C1 well encountered net pay in the Agua Grande Formation but did not encounter the Sergi Formation, the secondary target, due to the well crossing a normal fault before reaching the Sergi Formation. Data obtained from drilling the 182-C1 well is expected to assist in drilling follow-up development Agua Grande wells that will also be designed to reach the Sergi Formation further east from the bounding fault.   

Based on these drilling results, we plan to undertake a testing program of the 182-C1 well with a service rig, subject to customary regulatory approvals and equipment availability. This additional testing will assess the productive capability of this well and help define the field development plan. 

After running casing, we plan to mobilize the drilling rig to our next exploration location, the 183-B1 well, which is expected to be spud in May. The 183-B1 well also targets the Agua Grande and Sergi Formations as the primary and secondary targets, respectively.  

Alvopetro’s updated corporate presentation is available on our website at:

http://www.alvopetro.com/corporate-presentation.

Social Media

Follow Alvopetro on our social media channels at the following links:

Twitter – https://twitter.com/AlvopetroEnergy
Instagram – https://www.instagram.com/alvopetro/
LinkedIn – https://www.linkedin.com/company/alvopetro-energy-ltd
YouTube – https://www.youtube.com/channel/UCgDn_igrQgdlj-maR6fWB0w

Alvopetro Energy Ltd.’s vision is to become a leading independent upstream and midstream operator in Brazil. Our strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil, building off the development of our Caburé natural gas field and our strategic midstream infrastructure.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

All amounts contained in this new release are in United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.

Cautionary statements regarding the filing of a Notice of Discovery. We have submitted a Notice of Discovery of Hydrocarbons to the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (the “ANP”) with respect to the 182-C1 well. All operators in Brazil are required to inform the ANP, through the filing of a Notice of Discovery, of potential hydrocarbon discoveries. A Notice of Discovery is required to be filed with the ANP based on hydrocarbon indications in cuttings, mud logging or by gas detector, in combination with wire-line logging. Based on the results of open-hole logs, we have filed a Notice of Discovery relating to our 182-C1 well. These routine notifications to the ANP are not necessarily indicative of commercial hydrocarbons, potential production, recovery or reserves.

Testing and Well Results.  Data obtained from the 182-C1 well identified in this press release, including hydrocarbon shows, open-hole logging, net pay and porosities, should be considered to be preliminary until testing, detailed analysis and interpretation has been completed. Hydrocarbon shows can be seen during the drilling of a well in numerous circumstances and do not necessarily indicate a commercial discovery or the presence of commercial hydrocarbons in a well. There is no representation by Alvopetro that the data relating to the 182-C1 well contained in this press release is necessarily indicative of long-term performance or ultimate recovery. The reader is cautioned not to unduly rely on such data as such data may not be indicative of future performance of the well or of expected production or operational results for Alvopetro in the future.

Forward-Looking Statements and Cautionary Language. This news release contains “forward-looking information” within the meaning of applicable securities laws. The use of any of the words “will”, “expect”, “intend” and other similar words or expressions are intended to identify forward-looking information. Forward?looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking information concerning potential natural gas pay in the 182-C1 well, exploration and development prospects of Alvopetro and the expected timing of certain of Alvopetro’s testing and operational activities. The forward?looking statements are based on certain key expectations and assumptions made by Alvopetro, including but not limited to expectations and assumptions concerning testing results of the 182-C1 well, equipment availability, the timing of regulatory licenses and approvals, the success of future drilling, completion, testing, recompletion and development activities, the outlook for commodity markets and ability to access capital markets, the impact of the COVID-19 pandemic, the performance of producing wells and reservoirs, well development and operating performance, foreign exchange rates, general economic and business conditions, weather and access to drilling locations, the availability and cost of labour and services, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our annual information form which may be accessed on Alvopetro’s SEDAR profile at www.sedar.com. The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

www.alvopetro.com TSX-V: ALV, OTCQX: ALVOF

SOURCE Alvopetro Energy Ltd.