Brigadier Gold Begins First Drill Program at San Agustin Gold Mine
While the two candidates for the presidency of the US continue to impress the entire world with their keen judgment and sense of superior leadership, the metals cannot quite figure out which direction to proceed. For a couple of days it looked like they would rocket higher but it is a weak part of the season and I continue to hope for more of a correction to squeeze out the last of the Johnny-come-latelys.
A young, new company in the resource space recently optioned a gold/silver package in Sinaloa, Mexico. On the one hand, it’s not a cheap deal. On the other hand, it does happen to have over 160 mines and mine workings going back hundreds of years. It’s a 3,954 hectare property the company calls the Picachos gold-silver project.
Brigadier Gold (BRG-V, BGADF-OTCBB) came into the gold and silver resource arena in June. The shares shot up to $.60 before correcting back to about $.25. Management has raised $4.2 million for exploration. In addition 14 million warrants are solidly in the money and would bring it an additional $1.4 million.
Terms on the option include an initial payment of US $275,000 and four million shares of BRG along with an exploration requirement of $3.85 million US over a five-year period. When Brigadier outlines a resource of over 350,000 ounces in the inferred category they will need to fork over an additional 1 million shares. When a feasibility study is complete the company must come up with yet another 1 million shares in addition to $750,000 in cash in USD. Upon commercial production an additional $2 million USD is required. And there is a 2% NSR.
I think I may have mentioned the 100% option deal was not cheap. But they are in elephant country and with 160 former mines to poke through; they ought to be able to find something worthwhile.
The company has hit the ground running. Just two days ago the company announced the start of a Phase 1 5,000-diamond drill program, the first modern exploration on the property. It will consist of some 40 holes targeting four different high-grade gold, silver veins.
Past channel sample grades verge on the obscene including 26.2 g/t Au and 114 g/t Ag over a meter at Tejones, 32.3 g/t Au with 110 g/t Ag over 1.5 meters at San Agustin and 184.9 g/t Au and 61 g/t Ag in 1.2 meters also at San Agustin. At Fermin they reported 194 g/t Ag and 1.6% Cu with 1.1% Pb. At Mochomos they showed 18.5 g/t Au and 570 g/t Ag over half a meter.
Brigadier Gold is an advertiser on 321gold. I have not bought shares. Do your own due diligence.
Brigadier Gold Limited