Brixton Metals expands Atlin gold project
North of 60 Mining News – August 10, 2018
Last updated 9/25/2020 at 6:14am
Brixton Metals Corp. Aug. 7 said it has entered into a series of asset purchase and sale agreements to acquire a 100 percent interest in 29,608 hectares (73,162 acres) of mineral rights in the Atlin area of northwestern British Columbia, which expands its Atlin Gold property to 979 square kilometers (378 square miles.
This enormous property extending east from Atlin blankets an area that has produced more than 600,000 ounces of placer gold.
Brixton will acquire the claims comprising the 28,589-hectare (70,645 acres) Spruce Creek and Yellowjacket properties by issuing 4.3 million Brixton shares and paying C$50,000 in cash to Desert Mountain Energy Corp., formerly African Queen Mines Ltd.
The Yellowjacket property is situated in the Pine Creek Valley, an area subjected to extensive placer mining for more than 110 years.
Homestake Mineral Development drill tested the property and calculated a (pre-NI 43-101) preliminary resource estimate of 453,500 metric tons grading 10.26 grams per metric ton gold in the late 1980s.
Desert Mountain Energy, which acquired Yellowjacket in 2016, was issued a provincial permit that approves an open-pit mine and concentrator processing up to 75,000 metric tons per year remains in place.
The Spruce Creek property hosts the record for the largest gold nugget found in British Columbia, weighing 85 ounces. Other nuggets found in the Atlin area include a 73 oz nugget from Birch Creek, 48 oz nugget from Pine Creek, 47 oz nugget from Ruby Creek and a 28 oz nugget from McKee Creek. These findings are of interest because many of the nuggets have host rock fragments attached suggesting a low degree of transport and a local source for the gold.
The Spruce claims are subject to a 1 percent net smelter return royalty, which Brixton may purchase for C$1.25 million. The Yellowjacket claims are subject to a 2.5 percent NSR royalty, but Brixton has agreed to purchase 1 percent of this royalty from a private owner for 200,000 Brixton shares and C$10,000. Brixton has the option to acquire the remaining 1.5 NSR for C$1.65 million.
In a separate deal, Brixton will acquire the 1,019-hectare (2,518 acres) McKee and Otter properties by issuing to private sellers an aggregate of 250,000 Brixton shares. McKee and Otter are subject to a 1 percent NSR, half of which Brixton holds the right to purchase for C$250,000.
"Through the acquisition of the Desert Mountain holdings and private lands with the company's existing claims, Brixton has now consolidated its holdings to 979 square kilometres to become the dominate player in the productive Atlin gold camp," said Brixton Metals Chairman and CEO Gary Thompson. "We believe the camp has district-scale potential for both intrusion related gold deposits and orogenic Barkerville style high-grade gold vein deposits. While placer gold has been mined in Atlin since the late 1800s and continues today, only limited work has been conducted to source the gold."
In July, Brixton carried out geological mapping and prospecting at Atlin, including the collection of 1,711 soil, 151 rock and 23 stream sediment samples. Assays are pending.
"We believe that with our strong technical team we can unlock the potential for the benefit of our shareholders and local stakeholders like the Taku River Tlingit First Nations," said Thompson. "Desert Mountain will retain significant interest in the project through its equity interest in Brixton and a royalty on the project."