We sat down with Gary Thompson, CEO of Brixton Metals (BBB.V) for a short Q&A, after Brixton announced excellent drill results to the market in November.
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- Hole THN12-84 seems to be very continuous. Did the hole end in mineralization and will you drill deeper in the next drill season?
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- Hole 84 and hole 83 did not end in mineralization, however the rocks still look like feeder zone rocks, which means we want to drill further in that direction to confirm the boundary, as holes were cut short due to budget limits. The drill rig we have on site now can drill to 600m so we plan to test those levels in 2013 once we get the 3D IP done. This will help vector deep holes which could be as deep as 1500m and could be drilled at the end of 2013
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- Holes 86-87 did not encounter the Oban Breccia. It looks like the mineralization is now open to the northeast (although very narrow) southwest and at depth, is this correct?
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- It appears that holes 86 and 87 closed it off to the northeast but the zone remains open to the north and does narrow to about 30m wide, it appears to be open to the south (southwest to southeast) as curvy-linear. The nature of mineralization is sub-vertical to sub-horizontal and the zone remains wide open at depth.
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- Making some back of the envelope calculations, it looks like you currently have a mineralized zone of 4-6Mt, is this possible?
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- Your estimate is in the ball park. Keep in mind including historic holes at Oban only 5600m has been drilled here which isn’t a lot. So the ratio of money we spent on the project versus the in situ value of the metals is excellent.
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- How much of the first $5M to earn 51% did you already spend on the property?
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- We have spent north of $4M on the property in total so far so we expect to officially gain our 51% ownership next year.
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- What’s your current cash position and will you be looking to raise more money anytime soon?
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- We currently have $1.1M in cash and we are seeking a strategic investor before the next drill season. If we would drill with one drill rig, we could drill 15,000 to 18,000m.
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- What are your exploration plans for 2013? In your latest PR you talk about a ‘very aggressive plan’. Will you prepare an NI43 resource estimate next year?
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- The 2013 minimum program should be 15,000m up to 40,000m and yes we are targeting a 43-101 resource estimate for next year.
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We are impressed with Brixton’s drill results so far and our back of the envelope calculations came up with a conceptual resource estimate of 20Moz AgEq at this moment. If Brixton is indeed able to drill 30-40,000 meters next year, we would expect their maiden resource estimate to contain approximately 60 to 80 million ounces of silver equivalent.
As Brixton is currently earning a 51% interest in the project by spending $5M, and can earn a 65% interest by spending another $10M, we expect them to re-negotiate the original deal with Kiska Metals (KSK.V) to immediately acquire a 100% ownership in the Thorn-project. It’d be a real game changer if Brixton would be able to obtain 100% ownership, as a lot of investors like fully-owned projects instead of earn-ins.
Disclosure: The author holds a long position in Brixton Metals Corp. Please see our disclaimer for current positions.
