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Brigadier Gold [TSXV:BRG] has been getting a lot of love on The Armchair Trader recently, but readers will be wanting to know why some gold mining specialists, like Bob Moriarty, are also getting excited about it now. Like us, Moriarty has pointed out that the neighbouring mining projects of Vizsla Resources and GR Gold are trading at x8 to x10 the market cap of Brigadier Gold.

Moriarty is a respected independent gold mining commentator and analyst who runs the specialist gold mining stocks website 321 Gold. The Armchair Trader started covering Brigadier Gold on 27 October. Brigadier Gold is a gold and silver mining explorer that is focusing its efforts on the Picachos Project in Sinaloa state, Mexico. The mine is an historic one, but Brigadier is using new technology to test precious metal seams on the property lower depths.

Brigadier Gold has just released some excellent results from its Picachos mining project in Mexico. Moriarty has gone further, crunching some numbers on the Kitco site to factor in increases in precious metals prices.

“In my view Brigadier is a slam dunk for higher prices,” Moriarty says. “As of September 30, they had $2.2m in cash. There are 14m warrants at $0.10 that are solidly in the money and in fact they may be the overhang that is making the shares to cheap today. They will bring in another $1.14m when exercised.”

Brigadier has completed nearly half of the drill holes it was sinking into the historic Agustin mine in Mexico. “The market is going to wake up to what Brigadier is sitting on sooner or later and I expect a 300-400% higher move when it is clear that the correction and the tax loss silly season have ended,” Moriarty added. “In my spreadsheet I also put in the 7 metre intercept that contained the 1 metre ultra high grade numbers. And I think any observer would realise that seven metres of $500 rock is a home run.”

Like us Moriarty likes the fact that Brigadier is the first mining company to be using diamond drilling in the Picachos area. The proximity to successful and valuable projects in the vicinity, managed by Vizsla Resources and GR Gold are key selling points. Brigadier Gold still has a large number of drill cores still at assay and we are awaiting these results with great anticipation.

Some mining analysts – among them Moriarty himself – have noted that the speed of turnaround for assay results has dropped considerably during the Covid pandemic. There was also a sudden rush of mining exploration in North America over the summer months as governments eased restrictions on the mining industry. This has led to a flood of assay results into under-staffed labs in Q4. It may be we don’t see further results from Picachos until the New Year.

The Picachos project is the brainchild of mining geologist Michelle Robinson who has a long track record of working with successful mining projects in Mexico. She assembled the land package over 10 years ago and has had it earmarked for further exploration with more advanced technology.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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