Brixton Metals Completes Acquisition of Past-Producing Hog Heaven Mine from Pan American Silver with Historical Estimate of 47.3 Million Ounces of Silver
Marketwire 18-Jul-2017 9:00 AM
VANCOUVER, BC -- (Marketwired) -- 07/18/17 -- Brixton Metals Corporation(TSX VENTURE: BBB) (the "Company" or "Brixton") is pleased to announce that, pursuant to an asset purchase and sale agreement with Pan American Silver Corp.(NASDAQ: PAAS)(TSX: PAAS) ("Pan American") announced on June 22, 2017, the Company has completed the acquisition of a 100 percent interest in the Hog Heaven project, a past-producing silver mine ("Hog HeavenProject") in the State of Montana, subject to Pan American retaining a 3.0% net smelter returns royalty on the Hog Heaven Project (collectively, the "Transaction").
Historical estimate of 47.3 million ounces of silver and 225,800 ounces of gold(1);
Past production by Anaconda Mining Company ("Anaconda") (1929 - 1946) of 241,000 tons at an average grade of 26.6 troy ounces of silver per ton;
Additional past production of 49,700 tons, grading 9.35 troy ounces of silver per ton by a lessee from 1963 to 1975; and
Ore was shipped directly to smelters.
In connection with the closing of the Transaction, Brixton has issued $1 million in common shares of the Company (the "Acquisition Shares") to Pan American. The Acquisition Shares are subject to resale restrictions for a period of four months from the closing date of the transaction and no finder's fees were paid in connection with the transaction. Pan American has also agreed to provide notice to the Company of any proposed sale of the Acquisition Shares for one year and Brixton has the right to find a buyer.
Chairman and CEO of Brixton, Gary R. Thompson stated, "We are excited to have this asset in Brixton and are looking forward to advancing the project and unlocking its potential. We welcome Pan American Silver as a significant shareholder of the Company".
A historic silver and gold resource estimate exists for the Hog Heaven Project:
Property Location Unclassified Tonnes (Mt) Ag (g/t) Contained Ag (Moz) Au (g/t) ContainedAu (000's oz)
Hog Heaven USA Historical(1) 2.7 167 14.6 0.62 53.9
Hog Heaven USA Historical(1) 7.6 133 32.7 0.70 171.9
(1) Based on a historical estimate for Hog Heaven prepared by Gregory Hahn, Chief Geological Engineer for CoCa Mines Inc., a previous owner of the property, in a report titled "Hog Heaven Project Optimization Study" dated May 1989, prior to implementation of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") (as disclosed in Pan American's resource statement that was set out in a news release dated February 17, 2016) and based on diamond drilling. While Brixton considers these historical estimates to be relevant to investors as it may indicate the presence of mineralization, a QP for Brixton has not done sufficient work to classify the historical estimates as current mineral resources as defined by NI 43-101 and Brixton is not treating these historical estimates as a current mineral resource.
In the Hog Heaven Project Optimization Study, the historic estimate was sub-categorized as follows:
Category Tons oz/ton Ag oz/ton Au
ProvenReserves 2,981,690 4.88 0.018
Probable & Possible Reserves 904,200 10.40 0.020
HeapLeach Ore 316,100 1.56 0.014
PossibleResources 4,500,000 2.41 0.020
InferredResources 2,700,000 4.44 0.022
About the Hog Heaven Project
The property is located in Flathead County, 55 miles south-southwest of the town of Kalispell, in the northwest portion of state of Montana, USA. The property is easily accessible by driving 10 miles of gravel road from the highway. The Hog Heaven mine historically (1929 - 1975) produced 241,000 tons at an average grade of 26.6 troy ounces of Silver per ton and 49,700 tons grading 9.35 troy ounces of Silver per ton. The ore was shipped directly to smelters. The mine was operated by Anaconda from 1929 to 1946 and by a lessee from 1963 to 1975.
Several silver, gold and base metal mineralized zones occur as breccia and veins hosted by permeable units of volcaniclastic rocks. The high-sulphidation mineralization is accompanied by silicification of the host rocks. Silver is the metal of primary interest, although the gold and base metals are significant and could provide by-product revenues.
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: Hog Heaven Mineral Property, Technical Evaluation Report, Robert J. Rodger, October 14, 1984; Hog Heaven Project Optimization Study Report, Gregory Hahn, Chief Geological Engineer for Coca Mines Inc., May 1989.
About Brixton Metals Corporation
Brixton is a Canadian exploration and development company focused on the advancement of its gold and silver projects toward feasibility.
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
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Mr. Gary R. ThompsonChairman and CEOTel: 604-630-9707 email: email@example.com
Source: Brixton Metals Corporation