The following ASTER-SWIR satellite image shows Garibaldi Resources (GGI.V)’s Morelos Concessions (surrounded in yellow) along with Goldcorp (GG)’s El Sauzal Gold Deposit, which is to the northwest. As you can see, GGI’s Morelos property has a cluster of silica anomalies remarkably similar to the one underlying El Sauzal.

Click here to see the image. (The file is about 2MB large.)

Goldcorp’s El Sauzal Mine produced approximately 204,000 ounces of gold in 2009 worth about $277 million at current gold prices.

According to a NI-43-101 report authored by Dr. Peter M Megaw the anomalies are associated with broad zones of advanced argillic alteration. GGI has defined multiple drill targets at Morelos and had announced a selective drilling program with the company owned NQ diamond drill. This program will be subject to further exploration review by Mr. Alain Charest who is an advisor to GGI and discovered the El Sauzal gold deposit in addition to overseeing the development of GG’s Marlin deposit in Guatemala.

GGI closed up 31% today to $0.425 and with only 50,557,864 shares outstanding currently has a market cap of $21.49 million. GGI owns 4,312,300 shares of Paramount Gold and Silver Corp. (PZG), which closed today at $3.59. GGI’s PZG shares are worth $15.48 million. GGI also has $288,729 in cash. If you subtract the value of GGI’s PZG shares and its cash from its market cap, the market is valuing all of GGI’s gold and silver properties at a total of only $5.72 million. (GGI’s debt position is a miniscule $34,000.)

GGI controls seven district scale properties covering more than 2,000 square kilometres of prospective stratigraphy surrounding and along strike from some of the most robust gold and silver mining projects ever discovered in Mexico. In NIA’s opinion, these properties have the potential to be worth substantially more than $5.72 million and the market is not fairly valuing this stock.

Important Disclosure: NIA’s President owns 183,000 shares of GGI that he purchased at $0.28. He agreed to a 90-day holding period from the time of NIA’s original profile of GGI on December 28th, 2010. He will NOT sell any of his 183,000 GGI shares within this holding period. However, he MAY sell some or all of his 183,000 shares at any time after this holding period. Also please be aware that NIA’s President and others associated with NIA may have previously disseminated information on GGI to other newsletters and media outlets.

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http://inflation.us/blog/2011/01/garibaldi-resources-ggi-vs-morelos-concessions-vs-goldcorp-ggs-el-sauzal-mine/