Past Silver Production: 40.7 Moz Ag at 22 opt Ag
December 19, 2016 – Brixton Metals Corporation (TSXV: BBB) (the “Company” or “Brixton”) is pleased to announce that it has entered into an asset purchase agreement on an “as is, where is” basis with Temex Resources Corp. (“Temex”), a subsidiary of Tahoe Resources Inc., to acquire 100 percent interest in the Gowganda Mine, a past-producing underground silver mine (“Gowganda Silver Project”) in Ontario, Canada. The Company engaged Stony Environmental Inc. to review and complete environmental due diligence on the Gowganda Silver Project.
• Past production of 40.7 Moz silver at 22 ounces/ton;
• Tailings NI 43-101 indicated resource of 2.96 Moz Ag at 47.5 g/t Ag (2011);
• Excellent infrastructure, power and year-round access;
• Native silver and high Ag recovery rates;
• Low holding costs.
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The agreement provides that Brixton will issue 1,500,000 common shares to Temex for the Gowganda Silver Project (the “Acquisition Shares”). The Acquisition Shares are subject to resale restrictions for a period of 12 months from the closing date of the transaction. Temex will retain a 3.0% net smelter returns royalty (“NSR”) on the Gowganda Silver Project; however, the Company can buy down 1.0% of the NSR by paying Temex CAD$500,000 at any time prior to production.
Chairman and CEO of Brixton, Gary R. Thompson stated, “The acquisition of the Gowganda Silver Project reaffirms Brixton’s interest in this once famous silver camp. I believe this move into this historic camp provides investors with a unique brownfields silver opportunity in Canada.”
Temex filed a NI 43-101 resource estimate titled “Gowganda Silver Project including a Resource Estimate of the Surface Tailings Deposit” prepared by GeoVector Management Inc. for the surface tailings materials at the Gowganda Silver Project dated July 8, 2011. The resource estimate is categorized as indicated as defined by the CIM guidelines for resource reporting. To the best of Brixton’s knowledge, information, and belief, there is no new material scientific or technical information that would make the disclosure of these mineral resources misleading.
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The completion of the acquisition of the Gowganda Silver Project is expected to take place by the end of January 2017 and is subject to customary closing conditions, including TSX Venture Exchange (“TSXV”) approval and the consent of the Ministry of Northern Development and Mines to the transfer of the Gowganda Silver Project. The Company has agreed to a finders’ fee of $31,000 to Red Cloud Klondike Strike Inc. in connection with the completion of the acquisition of the Gowganda Silver Project, payable in cash or issuable in shares (at the election of Brixton).
The exploration plan for the Gowganda project includes historical data compilation and 3D modelling to identify drill targets. In addition the work will include an assessment of the silver recovery potential from the surface tailings on the property.
About the Gowganda Silver Project
The Gowganda Silver Project is 223 hectares under lease. The Gowganda mine produced 40.7 Moz Ag at a grade of 22 oz/t Ag. The mine operated for 62 years from 1910 to 1972. The project is located in Northeastern Ontario about 85 km west from the town of Cobalt, with excellent infrastructure. Access is via an all-weather road from Highway 560. The nearest airport is about 40 km to the east. The following description has been extracted from Ronacher et al., 2007: Mining began in 1907 on the Property at the Gowganda Silver Camp after the discovery of silver near Bloom Lake, located in Hautain Township. Intermittent recorded production of silver from 1910 to 1944 amounted to ~16 million ounces of silver from an undetermined tonnage of ore. Siscoe Metals of Ontario Limited produced an additional 25,501,489 oz of silver from 1,147,683 tons of ore milled between 1945 and 1972 (Lalande, 1981; Ronacher et al, 2007). There are no mineral reserves estimated for the Property. A NI 43-101 indicated resource of 2.96 Moz Ag at 47.5 g/t Ag from 1.9 Mt using a 10 g/t Ag cut-off grade for surface tailings material was established by GeoVector Management Inc., in 2011.
The Gowganda Silver Project is underlain by a thick sequence of metavolcanic rocks of Archean age which are unconformably overlain by younger flat-lying meta-sedimentary rocks of the Coleman Member Gowganda Formation, Huronian Supergroup. A sill of Nipissing Gabbro approximately 260 m thick subsequently intruded these rocks. The silver mineralization is hosted within this sill. Silver mineralization occurs within carbonate veins that fills fissures and can be associated with a wide variety of minerals containing combinations of cobalt-iron-nickel with As-Sb-S with minor amounts of chalcopyrite and galena (Ronacher et. al., 2007).
Mr. Sorin Posescu, P.Geo., VP Exploration, is a Qualified Person as defined under National Instrument 43-101 standards and has reviewed and approved this news release.
Sources: Smethurst, M., Ronacher, E., and Wetherup, S., 2007. Report on 2006 Drilling, Gowganda Silver Property, Gowganda, Ontario, Canada for Temex Resources Corp. (internal drill report); Technical Report on the Gowganda Silver Project Including a Resources Estimate of the Surface Tailings Report for Temex Resources Corp, Dated July 8th, 2011, GeoVector Management Inc., Authored by Campbell, P.Geo, Sexton, P.Geo and Armitage, P.Geol.
About Brixton Metals Corporation
Brixton is a Canadian exploration and development company focused on the advancement of its gold and silver projects toward feasibility.
Upon closing of the Gowganda Silver Project, Brixton will control 3 past producers of high-grade silver within the Silver-Cobalt Camp of Ontario. The Langis mine produced 10.4 Moz of silver at 25 oz/t Ag and 358,340 pounds of cobalt, the Hudson Bay mine produced 6.4 Moz of silver at 123 oz/t and Gowganda mine produced 40.7 Moz of silver at 22 oz/t Ag. The projects are generally located 500 km north of Toronto, Canada. The high-grade silver mineralization occurs as moderate-steeply-dipping veins within any of the three main rock types; Archean volcanics, Coleman Member sediments and Nipissing diabase.
The 996 SQ/KM, wholly owned Thorn Project is located in northwestern British Columbia, Canada, approximately 105 km ENE from Juneau, AK. The Thorn project hosts a district scale gold-silver trend associated with Triassic to Cretaceous volcano-plutonic complex. Many styles of mineralization have been identified related to porphyry and epithermal environments. Targets include high-grade gold-silver underground targets and large-scale open pit gold type targets.
Brixton Metals Corporation shares trade on the TSX-V under the ticker symbol BBB. For more information about Brixton please visit our website at www.brixtonmetals.com.
On Behalf of the Board of Directors,
Mr. Gary R. Thompson, Chairman and CEO
Tel: 604-630-9707 or email: email@example.com
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans, or other similar expressions. All statements, other than statements of historical fact included herein including, without limitation, statements regarding the completion of the acquisition, the anticipated closing of the acquisition, TSXV approval for the issuance of the Acquisition Shares, consent of the Ministry of Northern Development and Mines to the transfer of the Gowganda Silver Project, the ability of Brixton to enforce the lock-up agreements, and the exploration potential of the Gowganda Silver Project property based on resources estimates are forward looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; and the additional risks identified in the annual information form of the Company or other reports and filings with the TSXV and applicable Canadian securities regulators. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
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