The BarkerLetter

GGL Diamond Corp. (GGL>TSXV) had a stellar run yesterday on early results from its Winter Lake properties in Canada’s Northwest Territories.

The diamond explorer announced it had found nickel there, with host geology similar to the famed Voisey’s Bay discovery made in the country’s easternmost Newfoundland province in the 1990s.

Voisey’s Bay was a Cdn $4 billion discovery which began with the airborne discovery of a gossan, or surface-level, oxidized mineralization. Subsequent drilling by claim group holder Diamond Fields Inc. hit killer grades of copper, nickel, and cobalt.

What they intersected would later become known as the Ovoid orebody, an extremely rich, near surface deposit with terrific stripping ratios and exceptional metallurgy.

GGL, on the other hand, has no drill results to speak of, just an ‘initial geological assessment’ including grab samples. However, they claim the host rocks within the so-called Winter Lake Supracrustal Belt includes large volumes of mafic and ultramafic rocks, including sulphur-bearing sediments in the form of black shales and massive sulphides: Fertile ground for world class Ni deposits. The company suggests it may have discovered the world’s newest nickel belt, along the lines of the fabulously rich Thompson Nickel Belt in Manitoba.

This looks to me like a pure market play, given the growing investor interest in nickel explorers and the early stage of exploration at Winter Lake. The stock jumped from $0.20 Cdn. per share to upwards of $1.50, and has since traveled back to under a buck.

I’m inclined to wait for the first drill results before breaking out my wallet. However, those could come soon; GGL has already finished staking the surrounding area and raising capital. The next step will be targeting and drilling, assuming they can get a rig up there before spring break up.