PODCAST: Brixton Metals CEO Gary Thompson on their Mining Projects in B.C. and Montana, and Investing in more Cobalt

Midas Letter
Midas Letter
PODCAST: Brixton Metals CEO Gary Thompson on their Mining Projects in B.C. and Montana, and Investing in more Cobalt


Brixton Metals Corporation (TSX-V:BBB) (OTCMKTS:BXTMF) (FRA:8BX1) is a mining company focused on high-grade silver and gold. We spoke to CEO Gary Thompson who gave us an update on three major projects: the Thorn Gold-Silver project in British Columbia, the Hog Heaven Silver-Gold project in Montana, and the Langis-Hudson Bay Silver-Cobalt project in Ontario, the latter of which boasts mineral deposits with silver grades of 18 percent.



James West:     Gary, welcome back to the show. Let’s start with an update on the Thorn project. You’ve put out some pretty solid results, 17.26 metres of 2.6 grams per tonne gold equivalent; tell me about it. What can we expect in the immediate future to follow up?

Gary Thompson:     So yeah, just a little bit on Thorn: we recently announced some new results on the Chivas Zone. This is a brand new discovery on the Thorn project; it hasn’t seen any previous work since about 2014, was original a soil sample. So we’re pretty excited about it. It looks like we’re on to another large scale porphyry style target on the property.

So what I think is the significance of that for us is that confirming our ongoing thesis that’s evolving, that the Thorn project is a large-scale, really a district-scale mineralizing system. So it’s quite interesting. We continue to show promise on the property. In fact, we found a new zone that’s about almost three kilometres south of this Chivas area that returned some 4 percent copper and 0.8 grams of gold out of a sample at surface. So every season we continue to find new mineralization on the property, and I guess the next steps are really to continue to drill away on these targets.

James West:     Turning into a regular jewelry box up there.

Gary Thompson:     It sure is. I mean, high-grade underground targets, as well as some large-scale bulk minable targets. So we’re excited about it. We’re on the northern extent of the Golden Triangle, if you will, and we’re starting to see some other companies, like GT Gold, came out with some good results this year; that’s not too far from us. We’re certainly in that trend, similar fertile geology, as the rest of the Golden Triangle, and I think we have the makings of a very promising prospect as we continue to drill this thing out.

James West:     Yeah, you bet. Okay, and so you also put out a press release that indicated 182,000 grams per tonne of silver at Langis?

Gary Thompson:     Correct.

James West:     That’s – I’ve been staring at that and thinking that’s got to be some kind of a typo.

Gary Thompson:     I know, you’d think it is, and if you actually run it, it’s 5800 ounces per tonne silver, or actually 18 percent silver. Like, where do you get 18 percent silver? It’s a pretty rare kind of grade.

What’s remarkable about that is, in those four samples that were submitted, there was one sample that returned 2 percent silver but 16 percent cobalt. If you look at the value, it’s one of those things, you want a bar of chocolate or a bar of silver? People will take the bar of chocolate sometimes. We’ve had a lot of inbound calls on the cobalt numbers. But from a value proposition, it’s clearly silver-weighted is the bigger value on this project.

So this is our Ontario project, it’s called Langis. It was a past producer that produced 10.6 million ounces at silver at quite high grades, 25 ounces per tonne silver. And it also produced a fair amount of cobalt as well.

So we’re still churning through the old data; we’ve got a lot of old sections and underground workings information that we’re having to convert into a digital 3D model. So that’s been an ongoing process, so we plan to do some follow up drilling on that Langis. We have another one in the cobalt camp called Hudson Bay, but we kind of lump them together, even though they’re about 20 km apart. It’s a cobalt camp which is quite a famous camp, produced over 500 million ounces of silver. But there’s been a lot of interest in the cobalt lately there.

So we’re going to be going back drilling hopefully this fall for silver, and obviously some cobalt as well.

James West:     Interesting. The price of cobalt is still pushing through its all-time highs, so are you seeing an increase in interest from investors primarily interested in the cobalt, since you put out this press release?

Gary Thompson:     Well, that’s the funny thing is, if you look at the numbers, the value driver really is the silver, but there’s so much froth in the cobalt market these days, you know, partly because if you believe in the electrification of the transportation sector, then you should be a buyer of cobalt because there really are not many cobalt mines out there other than DRC, which produces a lot of the cobalt. So it certainly has been only what, a couple of years, probably not even 18 months of a real surge, and probably more in the last year, there’s been a big surge in cobalt interest.

So we plan to monetize the asset somehow through that level of interest. I think if we can get back out there and put a resource together on this play, I think we’re going to be in good shape. Infrastructure in this part of the world is pretty hard to beat; roads, rail, power, everything you need to build a low-cost operation here.

James West:     Yeah. So on that note, when do you think we will see a resource?

Gary Thompson:     Well, that’s probably about a 20,000, 30,000 metre question, and that’s probably a $4 million to $5 million budget that we’ve yet to put in the ground. So we’re working on that; it’s going to be probably a year or two out, depending on how aggressively the capital can get to work here.

James West:     Sure. And so what’s the condition of your treasury right now, how soon till you go back to the market?

Gary Thompson:     We’re about 1.7 million cash right now, so we’re in decent shape, but I think we’ll be looking to go back to the market sometime this Fall as we ramp up our drilling activities out there.

James West:     So the 1.7 million you have now, is that obliged towards any programs underway or imminent?

Gary Thompson:     Only a small bit of it. I mean, we’re doing a lot of compilation work on basically the Langis cobalt stuff is ongoing. We just acquired a whole other stack of data that we didn’t previously have, and also, I don’t know if you recall the release on the Hog Heaven mine in Montana, which we acquire this year, and we’ve got 55 boxes of historical data. So that’s keeping us busy on that front.

As far as drilling funds, we’ll have to go back to the market for that.

James West:     Sure. So let’s talk a bit about Hog Heaven, finally. What attracted you to that project, besides the boxes of historical core, and how is that going to fit into your priority list in terms of, you’ve got three fantastic projects underway now?

Gary Thompson:     Yeah, well, exactly. I mean since, I guess, the beginning of ’16, we actually have four projects now, and the fourth is really just an early-stage grassroots gold play in northern BC.

What attracted us to Hog Heaven was the fact that it had a pretty meaningful historical resource. It’s a non-compliant resource, but it’s 47 million ounces of silver and about a quarter million ounces of gold. So that’s obviously attractive to us, because that’s a significant amount of our resource base to work from. And based on some of the initial review or some of the data, there’s some pretty impressive drill intercepts in there. They did produce some high-grade, only about 6.5 million ounces of silver, but it was such high grade it was direct shift to smelters.

So we know there’s some very high grade material in there, and the previous company, Panamerican, basically acquired it about 20 years ago and really, I guess, were thinking that they were going to do some work on it with better metal prices, but never did.

We do have a feasibility study that was done in ’88, ’89 on it, that looks pretty good, and obviously with better metal prices today, I think they were using, I want to say like 400 gold and 6.50 silver or something like that as their numbers back then. Obviously prices are much, much better.

So for us I think it’s on patented land, so permitting should be fairly straightforward. So we want to get back out there and do some more drilling. We think we can improve the resource, get this thing closer to that 100 million ounce silver target, and then I think we have a mine on our hands here.

I think the Hog Heaven is moving up the sort of priority list pretty rapidly. As we dig through the data here, it’s becoming more apparent that we’ve got a real solid project on our hands here.

James West:      Yeah, if I didn’t know any better, I would think that you were trying to become a project generator.

Gary Thompson:     Yeah, we’re kind of morphing into something more than maybe we thought we were when we started, but I think we certainly have enough projects that we could bring a partner on one or more of these things. Certainly wouldn’t hurt.

James West:     Right.

Gary Thompson:     But the thing is, we own these things 100 percent. Our holding costs on these projects are quite low; in fact, our Thorn project, which is our largest property-wise, 1,100 square kilometres, we have zero holding costs for the next 10 years on it.

So we’re in a good position, we’ve got a good solid gold/silver projects, and we’ll keep moving them along the development curve and see how things come together.

James West:     You bet. All right, Gary, let’s leave it there for now. That was a great update. We’ll come back to you again in a couple quarters’ time and see how you’re progressing. Thanks so much for joining us today.

Gary Thompson:     Thank you very much, appreciate your interest.

James West

Editor and Publisher

James West founded Midas Letter in 2008 and has since been covering the best of Canadian and US small cap companies. He covers global economics, monetary policy, geopolitical evolution, political corruption, commodities, cannabis and cryptocurrencies. As an active market participant, James is not a journalist and is invariably discussing markets...
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