Tuesday 25th October 2016

Resource Clips

Brixton CEO Gary Thompson on BC assays of 904 g/t AgEq over 95.1m

Resource Clips - essential news on junior gold mining and junior silver miningBrixton Metals Corporation TSXV:BBB announced assay results from the Oban and Talisker zones of its Thorn project in northwestern BC. Highlights include

1.71 g/t gold and 628.3 g/t silver (904 g/t silver equivalent) over 95.1 metres
(including 2.28 g/t gold and 1,300 g/t silver over 25.6 metres)
2.08 g/t gold and 60.8 g/t silver (252 g/t silver equivalent) over 37.7 metres
(including 6.13 g/t gold and 197 g/t silver over 7.8 metres)
1.02 g/t gold and 35.5 g/t silver over 19.8 metres
4.44 g/t gold, 407.9 g/t silver and 2.95% copper over 4 metres

Brixton Metals holds a two-phase option agreement with Kiska Metals Corporation TSXV:KSK. Brixton can earn either a 51% or 65% interest by making cash and share payments and incurring $5 million and $10 million in exploration expenditures, respectively. Kiska may elect to form a joint venture with Brixton at the 49/51 or 35/65 stage or take dilution. Brixton will be the operator in either case.

Chairman/CEO Gary Thompson tells ResourceClips.com, “Thorn goes back to 1959; it’s a Kennco Explorations discovery. Historically, it’s had about 6,000 metres of drilling on it, and we drilled as much this year as all the previous operators combined. Having an aggressive exploration approach has served us well and obviously the result we hit is pretty spectacular.

This is an amazing discovery hole. I’d say the overall potential is huge—Gary Thompson

“It’s a high-sulphidation system, a cretaceous-age porphyry complex, so there’s a good span of timing for mineralizing events. We see multiple phases of intrusive and porphyry events happening. We’re seeing probably greater than a six-kilometre trend of mineralization. The Oban zone—where we hit this spectacular hole—basically lies in the centre of that trend. And we’ve got some spectacular high-grade surface samples that we’re working on following up. The analogies we’re using are El Indio in Chile, Lepanto in the Philippines and even La Bodega in Colombia, which are all very similar high-sulphidation systems that are world-class deposits. When I took this project on, I saw remarkable similarities to all those deposits, and their results are pretty spectacular as well.

“The idea of the program was to do a couple of things,” Thompson continues. “[First], we have a whole list of targets we’re checking off and testing. The second part of the program was to start to define, delineate and expand the Oban and Talisker zones. We’ve extended the Talisker zone to greater than 500 metres from the original couple of hundred metres of strike. And on Oban, we’ve got the three holes which we announced today. The second-to-last hole that we drilled for the season was on Hole 60. Obviously, we got lucky.

“I’d say the exciting part for us is that this Oban hole was on the eastern extent of the previous drilling at Oban, so it leaves it open at depth and to the east of where this high grade is. We’re going to want to go in there and follow that up and see how far the high grade goes. We’re pretty excited about the property in general; there are a lot of areas that we haven’t sunk our teeth into yet. The Outlaw zone is a good example. It’s an intrusive phase complex that we didn’t get a chance to spend any time on, but it has a very large soil anomaly. My thinking is that there’s great potential for this project at depth. And there is some spectacular high grade in the Amarillo Creek zone that we haven’t found the source of—8 ounces of gold per tonne and 20 ounces of silver per tonne, which at today’s prices is about $14,000 per tonne rock. So we know there’s a lot of juice here. It’s a big system.

“We would like to get to a resource estimate. Our target would be to try and get some preliminary, even inferred, numbers. Our goal is to ramp it up so that we can get to resource numbers as soon as we can. If we were to exercise all of the warrants that we have on the books right now, that would bring us in about $6 million, which would get us another 40-plus holes without having to go back to the markets. So we’re in pretty good shape from that perspective. We’re still working through the plans on exactly how we’re going to drill and where, but the plan would be to have enough budget to get to a resource stage.

“We’re not miners,” Thompson declares. “We’re exploration guys. We can take this to and probably through feasibility, but realistically I don’t think we’ll get there. If we keep delivering results like this, it’s pretty obviously going to be a takeover target.

“[The infrastructure] is getting better,” he continues. “We now have a temporary airstrip, so we can fly fixed-wing aircraft in. We can fly a fixed-wing aircraft right from Whitehorse. That’s helped a lot and saved a lot on transport and generally on infrastructure costs. The nearest road in there is about 50 kilometres to the southwest, which is the extent of the old Golden Bear Mine road. There’s lots of run-of-the-river Hydro potential—there are a lot of high-gradient streams there—so I would see that as the power potential rather than having Hydro run a line in there. But it’s still early days. We need to show we’ve got some economics, and I think with holes like this it’s not going to take too much to get the economics. We’re pretty confident in that.”

Thompson concludes, “This is an amazing discovery hole. I’d say the overall potential is huge. So obviously we’re very excited to get back in there and get some more of these or better results. We came out last year at $0.25, and we’ve had to slug it out to maintain market support. But with a hole like this and the interest we’re seeing, I think we’re on to a much better market cap for the company. Persistence and perseverance and keeping at these things when the chips are down are important. We got lucky, but we also had an aggressive program that was enough to get these kinds of results.”

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Gary R Thompson

by Ted Niles

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