Saturday 1st October 2016

Resource Clips


Bucking the trend

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Overall he describes the project as “a silver-rich, polymetallic system. We’re looking at around 50% of the value coming from silver, maybe 30% from gold and about 20% combined base metals.”

I like to be as aggressive as the capital will allow, but we’re also looking after our shareholders and our share structure.—Brixton Metals chairman/CEO Gary Thompson

It’s early days, though, with Phase II drilling just wrapped up. An approximately six-month season resumes in May. “We were tempted to do a winter program, but it’s challenging from a cost perspective,” Thompson says. Consequently he expects an initial resource in 2014. “I like to be as aggressive as the capital will allow, but we’re also looking after our shareholders and our share structure.”

Management, which holds 21% of shares, considers costs carefully. A fixed-wing airstrip has cut transport expenses, allowing for a one-hour flight from Whitehorse followed by a five or six-klick helicopter hop from camp to site. “We’re now under $400 a metre on an all-in cost basis. For this part of the world that’s pretty good. We continue to drive down our operating costs to put more money into the ground.”

That money has put Brixton well ahead of schedule in its option agreement with Kiska Metals TSXV:KSK, he says. “We have until the end of 2014 to spend $5 million, and we think we’re over the $4-million mark now. So we’re less than $1 million from our 51% earn-in. Kiska may elect to JV at that 49/51 stage. If they elect not to, we can go to 65% by spending an additional $10 million. Then they have the option again to JV at the 35/65 stage or take project dilution.”

Brixton Metals finds market favour for its B.C. silver-gold-base-metals project

A base camp airstrip near Brixton Metals’ Thorn Project cuts transportation costs.

Thorn’s location obviously makes infrastructure challenging. But not insurmountable. The project’s about 130 kilometres from the town of Atlin and lies between the past-producing Golden Bear gold mine to the southeast and Chieftain Metals’ TSX:CFB Tulsequah gold-silver-polymetallic project to the north. Tulsequah, which itself includes two past-producers, began construction under a previous owner when the 2008 crisis intervened. Since taking over in 2010, Chieftain has completed all permitting and expects to reach feasibility by year-end. The company plans to build a 128-kilometre road to Atlin, connecting with highways to the deep-water port of Skagway on the Alaska Panhandle. Although Tulsequah might rely on diesel-generated electricity, Chieftain’s June 2011 PEA considered the possibility of powering the mine with its own run-of-river hydro project.

Even with the favourable market response to Brixton’s latest news, Thompson maintains, “At these price levels Brixton is a unique story, showing a very robust, potentially large-scale high-grade silver-rich polymetallic deposit in a safe jurisdiction. We think it provides the opportunity to participate in what we believe to be a potential world-class asset at a relatively early stage.”

Read an October 24th, 2011, story about Chieftain’s Tulsequah project.

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