Brixton Metals (BBB) - NEW: Clearer Plan & Simpler Partner Model

Brixton Metals is a precious metals exploration and development company focused on advancing its 4 wholly-owned projects in the USA and Canada toward mine development.

Our recent conversation with Gary Thompson of Brixton Metals revealed some updates about the company and its exploration activities. Thompson functions as Chairman & CEO.

Company Overview

Brixton Metals is a Vancouver-based metals exploration company with active projects in Canada and the United States. The company focuses on high-impact projects and has strong financial support.

Management

In addition to Thompson, the company is managed by Cale Moodie, Director and CFO; Christina Anstey, VP Exploration; and Mitchell Smith, VP Investor Relations. A board of directors and technical committee also serve the management of Brixton.

Brixton’s Projects

The company has 4 principal projects. These are:

• The Thorn Gold-Copper-Silver Project. This asset, located in northwestern British Columbia, Canada, is wholly owned by Brixton and contains an inferred resource of 21.5Moz AgEq. The ore is hosted in sedimentary and volcanic units as well as in veins, breccia, and porphyry. It remains open for expansion.
• The Hog Heaven Silver-Gold-Copper Project. This advances stage exploration opportunity is located in northwestern Montana, USA. It contains an estimated 3 Moz Ag and 0.23Moz Au.
• The Langis-Hudson Bay Silver Cobalt Project. This is an ongoing exploration project in Ontario, Canada. Best drill results to data have revealed 6m of 4,719g/t Ag and 0.33% Co.
• The Atlin Goldfields Project. Located in northwester British Columbia, Canada, Atlin is in early-stage exploration for orogenic and intrusion-related gold deposits. Drilling at the Yellowjacket zone has penetrated up to 57m of 509.96g/t Au. 

High-Level Management View

Thompson was right to the point with his high-level overview. Brixton is a gold, silver and copper exploration company and they focus on the exploration side of things, he said. The company has a very big budget for 2021, is on a growth trajectory, and is excited about transforming into a much larger company than it's been, he told us.  

Changes Over the Last 18 Months at Brixton

We picked up where we had left of when we last chatted with Thompson about a year and a half ago, when we noted that Brixton had a big company attitude but were still a small firm without much cash. What has changed now, we asked?

Thompson had quite a bit to say. First he commented on the market itself, which he thinks has undergone a major transformation. Capital is coming back, he told us. They had been looking at getting into low-cost deals when the market was out of favor. Now, their bargain hunting is beginning to pay back.

Brixton has attracted some of that and at the end of 2020 had $9M in their coffers, a record for the firm. One of the factors was the deal that they closed with HPX on the Hog Heaven project. They also brought in the billionaire financier Robert Friedland, now their second-largest shareholder. They have been drilling at Langis with great results. And, importantly, they are ramping up at their flagship Thorn project.

At this point, they got more value in these projects tan the resources to develop them, despite having attracted a record amount of capital. They have cemented a deal at Hog Heaven but remain open to partnerships in their other projects.

Nevertheless, he said, this year Brixton’s focus is on Thorn. That project is getting the bulk or their attention and resources this year.

Thorn: A Company Maker

This year the firm intends to spend $5M at Thorn, a metal deposit originally recognized in 1959 by Kenneco Explorations (Western). The Thorn asset encompasses 2,594km2 and is wholly owned by Brixton. In 2020 the company identified 7 new, large-scale exploration targets at the deposit.

According to Thompson the Thorn project is not the same as it was a few years ago. It's a copper and gold porphyry system in an emerging 85km2 copper-gold district and Brixton intends on cracking it wide open. Geologically, the ore is contained in a Triassic to Cretaceous volcano-plutonic complex and related sedimentary units with several styles of mineralization related to porphyry and epithermal systems.

The company’s recent drilling at Thorn has yielded impressive results:

• 95m of drillhole with 1.71g/t Au, 628g/t Agplus base metals
• 554m of penetration with 2g/t AuEq including 136m of 5g/t AuEq

Brixton got into to Thorn because, as Thomson told us, they “Couldn't say no to it.” Prior to this, the district had been producing placer gold for many years. The company realized that there must be a hard-rock asset somewhere in the upper reaches of the drainages.

Hog Heaven: A Great Deal Made

The company brought in Hog Heaven in 2017. Now that interest in metals has picked up, Brixton recently brought in a world-class partner for the project, HPX (High Power Exploration), a forward-thinking company focused on efficiency and success in metals-focused exploration campaigns.

Geologically, the Hog Heaven ores are hosted within the Cenozoic Hog Heaven volcanic field, a 30-to-36 million-year old igneous suite that consists predominantly of rhyodacite flow and dome complexes and associated pyroclastic rocks.

The deal is structured as a US$44.5M earn-in agreement. They have to pay USD$4.5M in cash to Brixton over 6-years and USD$15M into the project to get 51%. They can then elect to go to the next level, which is another 5-year earn-in for another USD$25M. They have the option to get 75% from the project. Brixton’s GNA is covered by the terms for the next 6 years.

HPX intends to run their proprietary Typhoon survey and have it done at Hog Heaven by the summer. Information will be forthcoming.

Langis: A Sizable System?

The Langis Project represents a unique opportunity in a silver district some 500km north of Toronto, Ontario that is underexplored using modern techniques. The mine at Langis has historically produced over 10.4Moz of silver. Mine extension work and new exploration represent a major upside opportunity.

Brixton was able to pick up Langis for “a song and a dance” in 2015 when the market bottomed. Since then they have done quite a bit of drilling and have penetrated numerous lengths of high-grade silver ore.

Thompson indicated that they’d love to find a joint-venture partner at Langis, similar in structure to what they already have with HPX at Hog Heaven. Ideally, this would allow them to focus even more on Thorn.

Atlin Update

The Atlin area has produced over 600,000oz. of placer-deposit gold from 1808 to 1946. Brixton acquired this property to hunt for the “mother-lode” hard rock source of the pacer deposits. The principal exploration targets for lode-style gold mineralization are quartz-carbonate-mariposite altered ultramafic and mafic bedrocks, commonly referred to as listwanite.

The Atlin concession is 100% owned by Brixton and covers some 950 square kilometers. With all that historical placer production, the company intends to find the source of all that free gold, said Thompson. Current assessments indicate that there is promise to discover a large intrusion-related gold system. He told us that Atlin reminds him of the Victory Gold occurrence in Yukon, when original placer gold mining led eventually to the discovery of the intrusion-hosted mother lode.

Geochemical work is planned for later in 20201. They are very interested in finding a partner, said Thompson.

Plan Forward

Thompson admits that his company is undervalued at this point, despite the great numbers regarding ounces that are appearing in recent company press releases. His intents to keep drilling to demonstrate the real value being uncovered by Brixton Metals.

With all the activity at these 4 projects, Brixton intends to bring major doses of news to the market in real time. To that end, they’ve been working on what they refer to as their “Target Series”. The news will be rolled out in short video clips with minimal jargon so that everyone will know what is going on at these assets, Thompson said.

To find out more, got to the Brixton Metals Website