Brigadier Gold [TSX Venture:BRG / Frankfurt: B7LM / OTC:BGADF] has sunk its first three diamond drill holes as part of its 40-hole Picachos Property gold/silver exploration in Mexico.
The cores from the first pair of these holes have already been received at SGS Labs in Durango for further analysis, with a third core due later this week. It means we can be hopeful of some initial assay from what looks like a very promising gold and silver exploration project in Mexico’s Sinaloa state.
Why we like Brigadier Gold
We like Brigadier Gold because of its close proximity to two other projects which are already yielding bonanza-grade results, the experienced geological team which has deep knowledge of mining in this part of Mexico, and the fact that, while an assay report is imminent, results have not been priced in. Comparison with the other explorers in the area demonstrates the significant market cap gains that can result. In other words, timing is everything.
The Picachos Project is located over the Viva Zapata National Mineral Reserve in Mexico, which includes 46 veins, including the San Agustin vein which Brigadier Gold is currently exploring. The Brigadier Gold exploration is the first to use diamond drilling as part of its core extraction program and will provide fresh new analysis of the site, which was not possible in exploration by earlier companies.
Brigadier Gold said the drill holes had intersected the San Agustin vein up to 125 metres below the historic Nuevo Carrito adit.
Like many precious metals deposits in Mexico, there is a an excellent chance that the grade of contained gold and silver actually increase at depth.
“The project’s first ever diamond core drill program is playing a substantial role in assisting the company to better understand the geology and structure of the four vein systems we are targeting, while uncovering important details previously unknown to historical operators,” explained Ranjeet Sundher, President and CEO of Brigadier Gold.
The site is well-positioned between two other exploration projects that have already yielded very positive results and whose share price has also risen dramatically as a consequence. To the northwest lies Vizsla Resources’ Panuco project which has discovered bonanza-grade samples (e.g. 8,078 g/t silver equivalent reported in early July), while southeast is the Plamosas Project of GR Silver Mining, which has yielded up to 1313 g/t of silver equivalent.
All three exploration projects are sitting across some substantial veins in one of the richest silver mining areas in Mexico. The two explorers that have already reported have already seen substantial hikes in their stock price.
The Picachos Project
The Picachos Project site was chosen by Michelle Robinson, a highly experienced geologist who knows the Mexican geology extremely well. She has lived in Mexico for many years, is fluent in Spanish, and has been involved in a number of junior mining projects with a Mexico focus. She assembled the Picachos land package 10 years ago and has been keen to explore it ever since.
By way of comparison, Brigadier Gold has a market cap of C$16m versus the two other explorers, which have market caps of C$60m (GR Silver Mining) and C$104m (Vizsla Resources Corp). It is extremely cheaply priced pre-assay versus the two other explorers operating in the same region.
The Picachos Project has been explored historically since 1997, but diamond drilling and modern exploration techniques have not been previously used. However, earlier exploration achieved impressive samples of 81.22 g/t of gold and 73.6 g/t of silver.
We remain optimistic on Brigadier Gold’s upcoming drill data where positive high-grade results could see the company’s shares replicate the performance of their neighbours equities in the marketplace.