Brixton Metals acquires Gowganda silver mine
Brixton Metals Corp. [TSXV-BBB] has signed an asset purchase agreement on an “as is, where is” basis with Temex Resources Corp., a subsidiary of Tahoe Resources Inc. [TSX-THO], to acquire 100% interest in the Gowganda Mine, a past-producing underground silver mine 3 km from Gowganda, northeast Ontario, Canada. Brixton engaged Stony Environmental Inc. to review and complete environmental due diligence on the Gowganda Silver Project.
Highlights:
- Past production of 40.7 Moz silver at 22 oz/ton;
• Tailings NI 43-101 indicated resource of 2.96 Moz Ag at 47.5 g/t silver (2011);
• Excellent infrastructure, power and year-round access;
• Native silver and high Ag recovery rates;
• Low holding costs.
Some of the better drilling results include 35,623 g/t silver over 0.31 metres,16,731 g/t silver over 0.77 metres, 5,782 g/t silver over 0.70 metres.
The agreement provides that Brixton will issue 1,500,000 shares to Temex for the Gowganda Silver Project. Temex will retain a 3% net smelter returns royalty (NSR) with Brixton entitled to down 1% of the NSR by paying Temex $500,000 any time prior to production.
Chairman and CEO of Brixton, Gary 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 defined by the CIM guidelines for resource reporting. At a 30 g/t silver cut-off grade, there are 1,743,690 tonnes grading 50.1 g/t silver, for 2,806,483 ounces.
Completion of the is expected to take place by the end of January 2017 and is subject to customary closing conditions, including TSX Venture Exchange approval and the consent of the Ministry of Northern Development and Mines to the transfer of the Gowganda Silver Project.
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.
The mine, located about 85 km west from the town of Cobalt, operated for 62 years from 1910 to 1972. The project is, with excellent infrastructure. Access is via an all-weather road from Highway 560. The nearest airport is about 40 km to the east.
Upon closing of the Gowganda Silver Project, Brixton will control three 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/ton silver and 358,340 pounds of cobalt and the Hudson Bay Mine produced 6.4 Moz of silver at 123 oz/ton. The projects are generally about 500 km north of Toronto. 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.
Brixton’s 100%-owned 996 km2 Thorn Project is located in northwestern British Columbia, approximately 105 km ENE from Juneau, Alaska. 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