Vancouver, British Columbia–(Newsfile Corp. – August 10, 2020) – Brigadier Gold Limited (TSXV: BRG) (FSE: B7LM) (the “Company” or “Brigadier“) is pleased to announce that it has signed a definitive agreement (the “Agreement“) for an option to acquire a 100% interest in the 3,954 hectare Picachos Gold-Silver Property (“Picachos” or the “Property“), centered over the historic “Viva Zapata” National Mineral Reserve, Sinaloa, Mexico.
- Located between Vizsla Resources’ Panuco Project and GR Silver Mining’s Plomosas Project.
- San Agustin Mine underground channel sampling by prior operator returned average grade of 81.22 grams per ton (g/t) gold (Au) and 73.36 g/t silver (Ag) across 1.2 metres (Thunderbird Projects news release dated 18 June 1997). Values of 185 g/t Au were cut across the bottom of a production shaft (sample HBM-73175). The San Agustín vein has never been tested with diamond drilling.
- More than 160 known historic underground mines, workings and prospects at Picachos are on gold-rich veins.
- Recently identified, large copper porphyry prospect in northern area of Picachos.
- Drill / exploration permits in place as well as recently renewed surface access agreement with local community.
- 5,000 metre drill program targeting high-grade gold/silver, planned to commence shortly.
Ranjeet Sundher, CEO, remarks, “Closing the Picachos acquisition marks our official entry into the Sierra Madre epithermal belt, which has seen tremendous drilling success from neighboring exploration companies. Brigadier is well funded, having closed $4.2 million in financings over the last 30 days, and is preparing to initiate a maiden 5,000 metre drill program targeting the high-grade historic San Agustín mine. In addition to the high-grade San Agustín mine, Picachos offers exceptional exploration potential, with over 160 historic mines and workings throughout the Property.”
Picachos is comprised of four mining concessions covering an area of 3,954 hectares and is situated in the municipality of El Rosario, in the southeastern region of Sinaloa state, Mexico. Geographically, the Picachos overlaps part of the western foothills of the Sierra Madre Occidental (SMO). Access to Picachos from Mazatlán is by state highway and paved road to the town of Cacalotán, and then by country road into the Property. Total driving distance is approximately 111 road kilometres (km) over a period of four hours. Mine workings are accessed by approximately 20 km of roads internal to the Property.
Picachos overlaps (i) two regional-scale precious metal rich vein systems and (ii) a large porphyry copper prospect. Historic metal production is from the veins. The largest vein system trends northeasterly for seven kilometers along a major fault zone, and hosts the past-producing San Agustin underground mine, which contains approximately 670 m of historic underground development and has never been tested with diamond drilling.
To acquire a 100% interest in the Property (the “Acquisition“), Brigadier will provide staged consideration to the vendor over a 5-year period, consisting of cash payments totalling US$275,000; share issuances totaling 4,000,000 common shares of Brigadier; and cumulative exploration expenditures of US$3,850,000. Brigadier will also make payments to the vendor for Picachos development milestones as to: i) 1,000,000 common shares of Brigadier upon delineating a mineral resource estimate containing a minimum of 350,000 ounces of gold in the inferred category (based on the then current CIM definitions); ii) US$725,000 and 1,000,000 common shares of Brigadier upon completion of a feasibility study recommending the construction of a mine on the Property; and iii) US$2,000,000 upon commencement of commercial production. Brigadier may, at its option, issue common shares, at the then current market price, subject to a minimum of $0.30 per share, in lieu of one half of the cash payments to be made pursuant to each of ii) and iii). A 2% NSR will be retained by the vendor who is arm’s length to Brigadier.
In connection with the Acquisition, the Company intends to pay a finder’s fee of up to $325,320 (the “Finder’s Fee“), issuable in common shares at a deemed price per common share of $0.30, for a total of up to 1,084,400 common shares to be issued in accordance with the policies of the TSX Venture Exchange (the “Exchange“).
The Acquisition and Finder’s Fee are subject to approval by the TSX Venture Exchange.
The Company has not undertaken any independent investigation of the historical information contained in this press release nor has it independently analyzed the results of the previous exploration work in order to verify the accuracy of the information. The Company believes that the historical results and other information contained in this press release are relevant to continuing exploration on the Property.
Technical information in this New Release has been reviewed by Michelle Robinson, MASc., P.Eng., a Qualified Person as defined by NI-43-101.
Sample HBM-73175 was collected from a homogenous pile of mine muck taken from the bottom of JJV Slot in the San Agustin mine at the 601 m elevation by a geologist working for Hudbay Minerals in 2013. The geologist sent this sample with his other samples to Acme’s preparation laboratory in Guadalajara, Jalisco. There, the samples were crushed and split. A one kg split of each sample was pulverized to -200 mesh (R200-1000) with an extra wash with glass between each sample (code XWSH). The prepared pulps were sent to the North Vancouver lab for analysis using ICP-MS methods (code 1DX), whole-rock analyses (code 4A-4B) and fire assay methods using a gravimetric finish (code Group 6Gr). It is the QP’s opinion that the result of HBM-73175 is reliable.
About Brigadier Gold
Brigadier Gold Limited was formed to leverage what we believe will be the next major bull market in the natural resource sector, particularly precious metals. Our mandate is to acquire undervalued and overlooked projects with demonstrable potential for advancement.
Led by a management team with decades of experience in mineral exploration and capital markets development, we are focused on advanced exploration opportunities in politically stable jurisdictions.
For further information, please contact:
Leah Hodges, Corporate Secretary
This news release may contain statements which constitute “forward-looking information”, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking statements as a result of various factors, including, but not limited to, fluctuations in market prices, successes of the operations of the Company, continued availability of capital and financing and general economic, market or business conditions. There can be no assurances that such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
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