Sunday 11th December 2016

Resource Clips


Posts tagged ‘Brixton Metals Corp (BBB)’

Where the money is

June 10th, 2016

Joe Martin sees a fundamental transformation coming to junior financing

by Greg Klein

The old system’s not only broken, it can’t be fixed. The world of finance for mineral exploration is changing and juniors must learn new rules and master new tools to survive. That’s the message from Joe Martin, a former business journalist, the founder of Cambridge House International and a prominent advocate for investment regulatory reform.

Well, better scratch that last designation. He’s no longer advocating reform. “There’s no sense trying to change the existing rules because no one at the executive level wants to,” Martin says. “So we have to look at new opportunities emerging, primarily through electronic media.”

Joe Martin sees a fundamental transformation in junior financing

The reform movement failed, he says, despite encouraging response to an open letter by the Venture Capital Markets Association last August. The status quo prevailed—and for that, Martin blames political indifference, bureaucratic intransigence, the self-serving agendas of Canada’s fragmented securities commissions and banks that wield power over the TSX Venture. “Nobody wants to take action and we don’t have the money to fund a multi-million-dollar campaign,” he says.

Now he’s addressing the juniors, not the regulators, and he’s urging them to recognize new financing opportunities in crowdfunding, peer-to-peer transactions and the U.S. JOBS Act.

Crowdfunding has already prompted considerable buzz, especially with the arrival of Australian mine-funder Mineral Intelligence in late 2015, followed by Canada’s Red Cloud Klondike Strike after Manitoba, Ontario, Quebec, New Brunswick and Nova Scotia laid down a regulatory framework in January. Investors register with Klondike under the ordinary, eligible or accredited category.

Klondike’s first listing, Banyan Gold TSXV:BYN put up a $750,000 offer on March 2. The company closed a more conventional private placement of $200,000 the previous January. By press time, Banyan had yet to update the progress of its online offer.

Following that company by six days, Radisson Mining Resources TSXV:RDS offered up to $1 million on Klondike after completing a $324,000 private placement in December. Radisson expected to complete its offer by April 8. But it wasn’t until June 6 that the company announced closing of the second and final tranche, with a total $675,010 raised.

Joe Martin sees a fundamental transformation in junior financing

Joe Martin: “You’d better get in
this game and learn the new rules.”

Klondike’s biggest involvement so far might be IDM Mining TSXV:IDM, which raised a total of $10.85 million in April with Rob McEwan participating. But IDM didn’t divulge how much crowdfunding contributed. The company had said a portion of the placement would be brokered through a syndicate of Klondike, Haywood Securities and Medalist Capital.

Current offers listed on Klondike come from GoviEx Uranium CSE:GXU (up to $2 million), Sarama Resources ($2.25 million) and Brixton Metals TSXV:BBB ($1 million and $1.3 million).

Martin foresees a fairly gradual transformation but a definite change nevertheless with crowdfunding, peer-to-peer lending and the U.S. JOBS Act “all blending together to bring in a new world of financing. P2P, for example, is becoming very big in England.”

With last month’s Tier III enactment of JOBS (Jumpstart Our Business Startups), American crowdfunding has “opened up big time,” Martin says. “Less than 1% of Canadians are accredited investors who can take part in private placements.” The new U.S. regulations allow crowdfunding participants to invest a portion of their income or net worth, up to a percentage that depends on the individual’s financial circumstances.

“Those rules are changing. Canada isn’t changing, so we may be going to the States for financing.”

Martin also sees hope for Canadian juniors on foreign exchanges, as well as the Venture’s rival. “The CSE is doing a pretty good job. They’re a lot easier to deal with.”

Having despaired of fixing the existing system, he sees new opportunities elsewhere—provided juniors adapt. “You’d better get in this game and learn the new rules,” he emphasizes. “But don’t try to change the old ones because we’re not going to get it done.”

Joe Martin addresses the Vancouver Commodity Forum on June 14. Click here for free registration.

Brixton Metals chairman/CEO Gary Thompson on the Thorn silver-gold-polymetallic project in northwestern British Columbia.

November 12th, 2012

…Read More

Week in review

November 9th, 2012

A mining and exploration retrospect for November 3 to 9, 2012

by Greg Klein

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“So why buy the seniors?”

Briefly but significantly, Goldcorp TSX:G overtook Barrick TSX:ABX to become the world’s biggest gold miner by market cap. Goldcorp closed Tuesday with a $35.32-billion cap, slightly above Barrick’s $35.3 billion, Reuters stated.

That, despite the fact Barrick produces far more gold, with guidance of 7.3 million to 7.5 million ounces this year, compared to Goldcorp’s 2.35 million to 2.45 million ounces. Newmont, the world’s second-largest gold producer, expects to come in “at the low end” of its projected 5 million to 5.1 million ounces.

A mining and exploration retrospect

“It’s not necessarily that Goldcorp is doing so well, it’s just that Barrick is doing so poorly,” Reuters quoted John Ing, Maison Placements Canada president and mining analyst. The news agency noted that Barrick shares fell nearly 25% so far this year, while Goldcorp weathered the storms with a mere 3.5% drop.

In a Friday Bloomberg article, one of Barrick’s fired CEOs pointed out the proportionately greater potential of smaller companies. “You’ve got no growth in total in the industry and a lot of your mines are aging and closing down, so you have to work very hard just to stay even,” Randall Oliphant told the news agency. Now executive chairman of New Gold TSX:NGD, Oliphant was Barrick’s CEO from 1999 to 2003. He told Bloomberg that once a company’s producing more than two million ounces a year, shareholders’ growth expectations are hard to meet.

Bloomberg’s index of 20 mid-tier gold miners “rose 1.3% in the past three years through [Thursday], compared with a 19% decline in a gauge of 14 seniors. In the same period, New Gold has climbed 154% in Toronto, while Barrick slumped 18%,” the agency reported.

Craig West, an analyst with GMP Securities, told Bloomberg, “Barrick isn’t going to grow by 50% in the next three years. I can name eight different juniors that will, so why buy the seniors?”

The juniors West referred to might have been mid-caps like New Gold, which closed Friday with 462.55 million shares outstanding at $10.74 for a market cap of $4.97 billion. But some micro-caps don’t do too badly. On Monday Brixton Metals’ TSXV:BBB share price rose 33%, from $0.15 to $0.20, on news from its Thorn silver-gold-polymetallic project in British Columbia. The $13.55-million-market-cap company closed Friday at $0.215, with 63.03 million shares outstanding.

By Wednesday’s close, Barrick’s market cap was back on top. The giant closed Friday with a billion shares outstanding at $36.06 for a market cap of $36.08 billion. On October 31 Barrick announced a quarterly dividend of $0.20.

Goldcorp closed the week with 811.21 million shares at $44.24 for a market cap of $35.89 billion. Goldcorp announced a monthly dividend on November 5 of $0.045.

Friday’s closing bell found Newmont with 491.54 million shares at $48.07 for a $23.63-billion market cap. On October 31 the company announced a quarterly dividend of $0.35.

Cow Mountain no bull, says Barkerville

Still under a Cease Trade Order imposed last August, Barkerville Gold Mines TSXV:BGM intends to release a revised resource estimate later this month, Business in Vancouver reported on Tuesday. The CTO remains in effect until the company’s Cow Mountain resource estimate meets the B.C. Securities Commission’s satisfaction.

Last June Barkerville shocked and awed the market with an indicated resource of 69 million tons (not tonnes) grading an average 5.28 g/t gold for 10.63 million gold ounces.

On June 28 close, Barkerville’s stock sat at $0.81. The following day, when the Cow resource was announced, Barkerville opened at $1.35 and closed at $1.21. That evening the company announced “incentive stock options to certain directors, officers, employees and consultants of the company to purchase up to an aggregate of 634,980 common shares” at $1.21 a share. The next trading day, July 3, the stock hit a 52-week high of $1.67. On the August 13 CTO it closed at $1.22.

Investor enthusiasm aside, some observers were skeptical, even derisive of the resource estimate. “Hilarious” was the Northern Miner’s response.

Barkerville’s June 29 press release also suggested a non-43-101 “total geological potential” for the Island Mountain/Cow Mountain/Barkerville Mountain trend of 405 million to 684 million tons with an average grade between 4.11 g/t and 5.49 g/t for 65 million to 90 million gold ounces. Those numbers, the company stressed, were potential “and it is uncertain if further exploration will result in the delineation of mineral resources.”

Referring to the 43-101 resource estimate, Barkerville president/CEO Frank Callaghan told BIV, “We’re really confident in the numbers. We support the guy that’s done the work and we’re not prepared to throw him under the bus. He’s done a good job.”

The company has been twinning holes and drilling deeper, and has contracted Snowden Mining Industry Consultants to oversee the new 43-101. As a result it should be “very, very comprehensive to a point where a 10-year-old is going to be able to read it and understand it,” Callaghan told BIV.

The story quoted Northern Securities mining analyst Matthew Zylstra, who said that Snowden “adds some credibility. So whatever they come out with, I think this is going to be viewed a lot more positively.”

But he added, “I think they’re going to use a lot more strict criteria, so my feeling is that they won’t come out with the same kind of numbers that [the previous QP] Peter George did.”

Sub-Saharan Klondike

Where better to find an elephant country than in elephant country? Except for oil, South Sudan’s underground riches have long been neglected. But, according to a Friday Reuters dispatch, artisanal miners talk of finding the occasional nugget grading 200 grams or more. Now foreign companies are lining up in anticipation of new mining legislation scheduled to pass later this month. It’s expected to spark a licensing and exploration rush for several minerals.

“Nobody knows the extent of South Sudan’s mineral reserves because the 22-year war prevented exploration,” Reuters stated. “The latest geological surveys date back to the 1970s and ‘80s, but mining officials say diamond and gold deposits in South Sudan’s mineral-rich neighbours are encouraging. They describe the 16-month-old country as virgin territory.” South Sudan split from Sudan last year.

The news agency noted the trials of working “in a landlocked country with just 300 kilometres of paved road.” As government adviser Rainer Hengstmann told Reuters, “You need a railway if you want to go large-scale. It will take time. They really need roads and power.”

In the meantime artisanal miners prevail. Reuters described dozens of “Toposa tribesmen and women, festooned with plastic necklaces, brass piercings and beaded amulets, hack[ing] away at the red soil with metal poles and shovels, digging small craters in a boozy revelry.”

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Bucking the trend

November 6th, 2012

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

by Greg Klein

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Equity financing plunged 41%. Market caps plummeted 43%. Those were the dismal numbers released November 5 by PricewaterhouseCoopers LLP for the top 100 TSX Venture mining juniors for the year ending June 30. Of course, the Junior Mine 2012 report surprised no one. Instead—and despite its cautiously optimistic outlook for 2013—PwC merely confirmed the word on the street and the mood in the boardrooms.

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

Phase II drill results released November 5 boosted Brixton Metals’ stock price considerably.

But not for all companies. The same day an announcement by Brixton Metals TSXV:BBB sent its stock from a November 5 open of $0.15 to a close of $0.20. The next day the price hit $0.26 before settling back at $0.20. Brixton’s news came from its Thorn Property, a 28,000-hectare silver-gold-polymetallic project in northwestern British Columbia.

“What we’re showing is evidence of a system that has significant scale potential from what most people previously thought was a small, narrow, high-grade system,” says chairman/CEO Gary Thompson. “I think it’s clear now that we’re dealing with about a 150-metre zone, about 100 metres of true width, which is quite substantial.”

Assays from hole THN 12-83 show:

  • 165.3 grams per tonne silver, 1.37 g/t gold, 0.11% copper, 0.92% lead and 1.25% zinc for a gold-equivalent of 5.67 g/t or a silver-equivalent of 314.59 g/t over 150.5 metres
  • (including 284.15 g/t silver, 1.49 g/t gold, 0.12% copper, 1.31% lead and 1.78% zinc for a gold-equivalent of 8.41 g/t or a silver-equivalent of 466.28 g/t over 73.7 metres)
  • (including 725.55 g/t silver, 2.01 g/t gold, 0.13% copper, 3.33% lead and 3.68% zinc for a gold-equivalent of 18.89 g/t or a silver-equivalent of 1,047.54 g/t over 13 metres)

The intercept starts at 24 metres and ends at 174.5 metres, with true width estimated at approximately 100 metres. Grades are uncut.

Hole 12-80 showed these results:

  • 162.94 g/t silver, 0.34 g/t gold, 1.24% copper, 0.07% lead and 0.14% zinc for a gold-equivalent of 5.89 g/t or a silver-equivalent of 326.71 g/t over 7 metres
  • (including 500 g/t silver, 0.69 g/t gold, 4.03% copper, 0.11% lead and 0.22% zinc for a gold-equivalent of 18.01 g/t or a silver-equivalent of 998.58 g/t over 2 metres)

This intercept runs from 104.5 metres to 111.5 metres, with true width yet to be determined. Still pending are results for six additional holes, as well as 362 soil samples that might indicate the original location of a rock that graded 265 g/t gold and 631 g/t silver.

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

A cross-section of recent drilling showing hole THN 12-83.

The company states that the project’s Oban zone remains open in several directions, with recent drilling expanding high-grade mineralization at depth to the south-southeast by 70 metres.

As a geologist, Thompson finds hole THN 12-83 especially remarkable. “I think the interesting point is that the mineralization is actually hosted within the Thorn porphyry stock unit, which is a little unusual because most of the mineralization that we’ve seen is hosted within the Oban breccia zone. So my gut’s telling me there’s some structural control to the system that’s probably propagating structures into the Thorn stock, allowing for the associated mineralizing fluids to drive into the stock. I think this zone is under-explored and we’re learning new things each time we work on the system.”

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

January 6th, 2012

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.”

View Company Profile

Contact:
Gary R Thompson
Chairman/CEO
604.630.9707

by Ted Niles

Brixton reports BC Assays of 2.28 g/t Gold, 1,300 g/t Silver over 25.6m

January 5th, 2012

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.”

View Company Profile

Contact:
Gary R Thompson
Chairman/CEO
604.630.9707

by Ted Niles

The Company It Keeps

March 22nd, 2011

Brixton Metals is an Emerging Player in Alaska’s Rich Kahilt District

By Ted Niles

What is it they say about first steps? That they’re the hardest? True, no doubt, but some are easier than others. Take Brixton Metals Corporation. It may be a year old and has yet to put a drill in the ground; but it boasts the largest landholding in an area of Alaska that is being spoken of as an emerging district-Kahilt.

Located 150 kilometres northwest of Anchorage, Brixton’s Kahilt Property consists of 863 claims-252 optioned from Millrock Resources Inc-that total 557 square kilometres. More important than this, though, is the company Brixton keeps. Millrock’s neighbouring Estelle Project is under option from Teck Resources Limited, which has a $3.4-million exploration program on tap this year. And Kahilt is immediately adjacent to Kiska Metals Corporation’s Whistler Project, which boasts indicated resources of 1.28 million ounces gold, 5.03 million ounces silver and 302 million pounds copper; inferred resources of 1.85 million ounces gold, 8.21 million ounces silver, and 467 million pounds copper.

Brixton Metals is an Emerging Player in Alaska's Rich Kahilt District

“So there’s Teck and Millrock,” says Brixton President/CEO Gary Thompson, “and we anticipate Kiska probably spending in the neighbourhood of $20 million there this year. We have a proposed $10-million budget. So you’re talking about a $30 million to $35 million budget for this area. We’re excited about Kahilt because we see the potential for something big. We’re in the same geological terrain as the Pebble Deposit-which is being developed by Northern Dynasty and Anglo American-and that’s one of the largest copper-gold-moly-silver deposits on the planet.”

Summer 2011 work will focus on Monte Cristo and St Eugene-the two Kahilt targets under option from Millrock. Thompson explains, “It’s relatively unexplored-Millrock spent only about $330,000 on the property-but it’s come up with two fairly large-scale targets. St Eugene appears to be a copper-gold-moly porphyry system. Monte Cristo appears to be an intrusion-related gold system. Our Alaska drill program will be somewhere in the area of 10,000 to 16,000 metres, and about 20,000 soil samples will be collected.” Rock samples from St Eugene show grades as high as 1% copper and 2.1 grams per tonne gold. Monte Cristo samples indicate up to 4.2 g/t gold.

In 2011, Brixton will also drill 5,000 metres on its Thorn Property in northern BC. The company has an option agreement with Kiska to earn up to a 51% interest in the project. Thorn exploration dates back to 1959. Thompson remarks, “It’s had a fair amount of work-about $5 million. Our sense is that the previous operators just didn’t have the right model, didn’t drill deep enough, which is a classic error. So we’re taking a fresh look at it. We’ve done some internal, back-of-the-envelope estimates on the drilling that’s been done to date on the Oban zone, and we came up with a non-compliant 43-101 resource of about 15 million ounces silver equivalent.”

It’s early days yet, but Thompson suggests that if this year’s drilling targets are met, “And in 2012 let’s assume that we’ll double those or more on our budgets,” Brixton can then provide preliminary resource calculations for Kahilt and Thorn. He adds that Brixton, which is 5% owned by Zimtu Capital, is in “finance mode” now. As of March 21, the company had a market cap of $5.17 million and traded at $0.23.

We’re excited about Kahilt because we see the potential for something big. – Gary Thompson

Thompson is unambiguous about the long term. “I don’t see us trying to go from exploration to production,” he declares. “If the resource is there, we want to drill that up and take it as far as we can. To the feasibility stage perhaps. And perhaps somewhere along the way we bring in a major partner. Or, if it’s big and juicy enough, somebody takes a run at Brixton. At the end of the day we’re trying to create value for our shareholders.”

So, apart from the promising property, what does Thompson think will inspire investor confidence in so junior a junior mining company? “Our team. [Director] George Salamis has a number of deals under his belt. Toby Hughes is our VP Exploration and has 30 years of experience. I’ve been involved in exploration since the mid 1980s; I have a gold-silver discovery to my credit. You want to look at the team. Who’s involved, can they deliver? That’s what should give investors confidence.”