Remember that the price action causes what we see on the charts, not the other way around. So it is common for some of the indicators to look “bad” immediately before a turn up. I don’t believe BBB will sit around or go lower if the sector starts to move up.

I still have hundreds of thousands of shares, not millions. 😉

Silver’s indicators are also mostly bearish but I don’t think it has much downside from here, if any.
SLV:
https://stockcharts.com/h-sc/ui?s=SLV&p=D&yr=0&mn=9&dy=0&id=p21797524356&a=561694199

Brixton abandoned the plan to spin out Langis/Hudson Bay into a Silver/Cobalt company 2 years back, as the steam came out of Cobalt, but in retrospect it may have been a good idea as they are getting 0 value out of those properties in their portfolio (which looked much more interesting than most of the prior work they had done at Thorn and Atlin). Also there was already a history of mining in Langis/Hudson Bay with plenty of infrastructure & power access & water access in place, so it would be the easiest path to production for them.

It may be wise to spin out a “New company” with both Hog Heaven and Langis/Hudson Bay combined, and create a Silver exploration and development focus for that company.

Then Brixton could stay more focused on Gold/Copper like they have been with Thorn & Atlin.

They’d clearly define the focus of both companies that way (1) Gold/Copper (2) Silver/Cobalt/Zinc/Lead and would attract more investors that don’t want to buy into an unfocused mashup.

Brixton was actually done rising by the time the high grade Langis results were reported in 2016 so I’m not sure the property had anything to do with the rise. In fact, there was no great news to speak of during the huge move that year and the only press release the year before (2015) contained this at the end:
Brixton is an exploration company focused on the advancement of high-grade precious metal assets to feasibility. Brixton’s Thorn project hosts a district scale Triassic to Cretaceous volcanoplutonic complex with several styles of mineralization related to porphyry and epithermal environments. Targets include sediment hosted gold, high-grade silver-gold-lead-zinc-bearing diatreme-breccia zones, high-grade gold-silver-copper veins and porphyry copper-gold-silver. The 28,000-hectare Thorn Project is located in the Sutlahine River area of northwestern British Columbia, Canada, approximately 105 km ENE from Juneau, AK.
-end-

So it seems it has always been about Thorn. Still, so many silver stocks did so well that year that company-specific news of any kind probably played only a small role in the advance, in my opinion.

I bought quite a bit more at .155 today.

Most of the press releases in early 2016 were about Langis & Hudson Bay – Their silver properties. They had just acquired them in early 2016, and that is what was animating most of the share prices moves, and certainly why I started following them. They had been drilling on Thorn simultaneously but many were realizing they hadn’t drilled up enough to make an economic deposit, so the narrative was definitely getting more Silver focused in 2016.

______________________________________________________

This news release in Feb 2016 was what really kicked off the fervor in Brixton back then:

BRIXTON METALS CLOSES ITS ACQUISITION OF THE PAST PRODUCER LANGIS SILVER MINE
February 2, 2016

“Brixton Metals Corporation (TSXV: BBB) is pleased to announce the completion of the purchase and sale agreement with Canagco Mining Corp. to acquire a 100% interest in the claims comprising the past-producing Langis silver mine). The project is located in the historic Cobalt silver mining camp of northeastern Ontario.”

_________________________________________________

Then in March there was this update on their Langis Silver deposit:

Brixton Metals Provides Preliminary Model of the Langis Silver Project

March 2, 2016 – Brixton Metals Corporation (TSXV: BBB) announces that it has published additional data on the Langis Silver project located in Northeast Ontario through a short video.

__________________________________________________________________

Then there was the investment by Rob McEwen making him the largest investor at that time which got folks more confident:

BRIXTON METALS CLOSES $1,023,300 FINANCING
April 11, 2016

“Mr. Robert McEwen (Evanachan Limited) and CMP 2016 Resource Limited Partnership have subscribed for 2,500,000 Units and 2,500,000 FT shares respectively. At closing (and after the share issuances described below are completed), Brixton will have 25,589,926 shares outstanding on an undiluted basis. Mr. McEwen becomes Brixton’s largest shareholder holding 13.7%, CMP holds 9.7%, Hecla Mining holds 8.8% and management and Directors collectively hold 15.8% of the Company.”

__________________________________________________________

Then in April of 2016, Brixton announced it had acquired yet another Silver project in picking up Hudson Bay:

BRIXTON METALS ACQUIRES THE PAST PRODUCER HUDSON BAY SILVER MINE
April 28, 2016

“Brixton Metals Corporation (TSXV: BBB) is pleased to announce that it has acquired 100% control over the past producing Hudson Bay silver mine in the Cobalt mining camp of Ontario. ”

_______________________________________________________________

Then they did another $2 Million financing on May 10th to help fund the drilling of Langis and Thorn. After that they quickly turned around an agreement with the First Nations group, showing the good community acceptance of the project.

BRIXTON METALS AND TIMISKAMING FIRST NATION SIGN EXPLORATION AGREEMENT
May 10, 2016

“Brixton Metals Corporation (TSXV: BBB) is pleased to announce that it has entered into an Exploration Agreement dated May 2, 2016 with Timiskaming First Nation with respect to the Company’s Langis Silver project and other Cobalt lands. ”

http://brixtonmetals.com/category/2016/page/2/

_____________________________________________________________

Almost the entire first half of the year in 2016, and miners were surging was about picking up Langis and then Hudson Bay, and that is what created the surging interest in Brixton, beyond what they had been doing with Thorn – mostly around gold.

So it’s a stretch to say it was always about Thorn. What investors liked in 2016 was picking up 2 new Silver/Cobalt properties, and that speculation is the lion’s share of why BBB surged in 2016. Now they’ve all but abandoned posting news on those properties after a number of solid drill campaigns on it because Silver & Cobalt pricing faded down hard in 2017 & 2018.

I’m glad they are going to drill on Hog Heaven this year, but they’d get more mileage out of it and Langis and Hudson Bay if they were in their own company, as most of the comments and investor interest in Brixton for the last 2 years has been back on their Gold/Copper exploration at Thorn, and their Gold exploration at Atlin.

News always looks like a big deal when the whole sector is on the move. Had the cycle been down, I doubt very much that any of those press releases would have done much for the stock. Appearances aren’t always what they seem and way too many investors are too sure that they know the reasons behind everything the market does when in fact nothing could be further from the truth. This is why too many investors think the market is “wrong” much more than it really is. The fact is, the market was not wrong when it priced IPT at 11 cents or USA at 4 and half cents in early 2016 yet many were claiming that such juniors were cheap and “stupidly” priced. There’s way too much flippant talk among retail investors about value, but I digress.

I agree that there are many forces moving the markets, but I invested in BBB back in 2016 specifically because of them picking up those 2 Silver properties with Cobalt credits, and the buzz in other investing chatrooms was about their Silver properties coming on board and that was what all the press releases from the company were about the first half of 2016. My only point is now their focus and the chatter from investors in Brixton has been mostly focused around their Gold/Copper exploration at Thorn, and their Gold exploration at Atlin. It will track PMs just fine, but I don’t believe most investors are rating it for the silver in the ground at Hog Heaven, even though that is valuable and will become more so in rising silver prices. Maybe the drilling there in 2019 will get more eyeballs on that silver property, but most of the focus the last 2 years has been Thorn & Atlin.

Brixton rose a large 4.7 times as much as SILJ following the May/June lows which is similar to the leverage it gave in 2016. Yes, most investors are not “rating it for the silver in the ground at Hog Heaven” but most investors don’t make the price. The big players do and they are very good at causing share prices that reflect reality (like IPT at .11 when silver was below $14).

I sure hope the big players to factor in Hog Heaven’s Silver in the ground, and the silver in the ground at Langis and Hudson Bay, and then add to the Gold/Copper/some Silver at Thorn, and the Gold at Atlin, and then the shareprice will rerate much higher, because right now the big players are not valuing all 4 projects in the current shareprice – hence – inefficient markets.

There might be a case for a short term price-value mismatch here but it could also be that you’re making exactly the assumptions that I highlighted above. Are you sure you’ve discounted everything that goes into turning those projects into producing mines? Do you know what the company really has that isn’t contingent upon more drill holes or higher metals prices or local politics or even natural market cycles? There’s a reason most junior miners rely on gamblers and not banks for their financing and it has a lot to do with value that is subject to a host of “ifs.”

The company trades at 2 times book which is $17M excluding over $5M in cash. If it is worth more than that, how much more? If you can’t say, then you’re really guessing when you call it under-priced. Likewise, if you didn’t call it expensive when it hit $1.20 in 2016, what does it logically mean to call cheap, now? In my opinion, not much.

As a speculator, I’m a buyer because I think the odds are good that today’s price will be cheap someday soon, not because it is cheap today even if silver goes nowhere.

Investors buy what is true today. Speculators buy what might be true in the future. Virtually all of what Brixton has going for it is a bunch of possibilities.

All explorers, and even the developers and producers are based on a large sea of “if” and potentials, and investors are speculating on the future, so that is true across the board. Book value for explorers is basically meaningless, since most of the value is in the perceived future value of what their deposits could be worth based on the exploration work done. and thus won’t be represented there. Book value is far more appropriate for more established producers or standard businesses that have sales, assets, machinery, and with miners clearly defined economic studies on the worth of the assets.

It is much more standard to compare Jr explorers to their peers that are digging up similar grades, in similar geology, at similar depths, but it is all very subjective until the deposits get a PEA, and preferrably a PFS, and then FS in place to quantify the economics. Even then there are plenty of examples that have popped up over the years where the value of the deposits were not properly accounted for in the share prices, and sometimes companies are trading below the cash value they hold, so no markets do not always have things priced correctly.

We’ve covered on here repeatedly how mismatched many arbitrage trades are for months at a time during takeovers, and the markets don’t reprice those until after the transaction closes, providing a present day valuation mismatch by Mr. Market. We’ve reviewed a number of times on here how wacky the current valuation is for GZZ just based on the arbitrage it has to RZZ’s royalty, not to mention all the other assets, NSRs, and strategic stakes it holds, and none of that had anything to do with book value.

Much of the drilling the Brixton has done is either not included in current resource estimates, or there aren’t even economic studies done on some of the properties yet, so it makes the whole valuation an aspect of projecting where things could go at both current metals prices and where the metal prices are heading, no “big players” or retail investors could peg all the criteria down that you listed, especially on a more speculative drill play like Brixton with so many unknowns. $1.20 was on the expensive side back in 2016(and it was back then and I trimmed the position way back into the highs, and have traded around my position for 4 years now buying dips and selling rips), then $.13 is cheap for a company with more projects and more drilling (albeit some more dilution) with more questions answered than where they were 4 years ago. Surely a more proper value is somewhere between those 2 extreme poles.

You misunderstand the “ifs.” Larger miners actually mine stuff and have bankable reserves, and profits and permits and a track record regarding both operations and community acceptance, and, and, and. The big banks/brokers don’t initiate analyst coverage of the Brixton types because there’s nothing to cover. Which is a big part of the reason that they move so wildly. There’s a lot of retail guys driving big swings because they think they understand value.
Book values don’t necessarily mean a lot in many cases but can be more useful than you think when comparing apples to apples.
If you did not believe that silver would go higher anytime soon, would you still call Brixton undervalued? I would not. The main value in such an environment would be its high grade gold holes which are a long way from being bankable assets. A stock can only be considered cheap based on what is true today, no matter how certain you might be about a rosier picture tomorrow.

Excelsior, yes, please Gary Thompson FOCUS! Pick a flagship property and stick to it.

I think in a recent post Bob Moriarty said he wasn’t really able to do justice to ore grades and implied values derived from the blizzard of information companies release. Hear hear. We all try but in the main must place our trust in the source of that information, the company.

By bouncing from property to property like a pinball Gary Thompson is jeopardizing that trust.

Agreed blazesb. Very well stated, and I’d love to see Gary and team get laser-focused after 4 years of playing follow the shiny object from project to project.

Most of the investor anticipation the last 2 year has been seeing if the drilling at Thorn and new exploration hits can make a big enough difference to help out with the economics and mine plan. I’m also still very interested to see what happens on their Atlin exploration, but it is much earlier stage.

Still the market has been responding to great discovery holes and high grade intercepts, and looking to see if Brixton can hit pay dirt with one of their campaigns in 2020 and get more of a buzz going once again.

blazesb – Hillarious. I just went over to Brixton website to look for an updated corporate presentation, and NOW they have Hog Heaven (last year’s #3 property) as the “Main” project and on the cover of the new slide deck. They’ve changed the main focus once again!!

Amazing, as Thorn is getting throttled back again to 2nd place, and Atlin is now reduced to 3rd position with only some geo-chemical work for the upcoming exploration season. Again no mention of Langis/Hudson Bay, but hopefully they’ll JV that out or spin that out to another company to get some work going on it under some other company’s dime.

I guess Hog Heaven is the new focus for 2020, which actually I prefer, as Silver is going to be coming more and more back in vogue, and there is a big historic resource there that they’ve done very little with since they picked up the property.

Let’s hope they hit it big with Silver drilling in Hog Heaven and that they get some traction in the market and things start moving to the upside once again.

At least now they’ll be more tethered to Silver versus Gold for 2020.

http://brixtonmetals.com/wp/wp-content/uploads/2020/01/BBB-January2020-FINAL.pdf

I had moved (BBB) from Silver explorers to more Gold Explorers back in 2018, but now in 2020, it’s time to move Brixton back over to more of Silver-focused explorer once again.

Even though it is further management ADD in previously outlined strategy, I agree with their decision to highlight their Silver property more prominently as Silver stands to go up much more on a percentage basis than Gold, and create more interest as the PM bull charges on this year.

I meant to say “I have not seen the chart” above.

Hi Charles – There may be some work for Resolute to still do to prove to the marketplace that it’s transformation is going to delivery, where it still could sell down some in the changeover, but longer term it is a very solid company. RSG.AX is still halted based on all this latest news on the capital raise, right on the heels of selling their more marginal Ravenswood mine in Australia, to focus completely on Africa.

One has to believe that their projections for cost reductions and improved efficiencies at Syama are going to go as planned, but they’ve been mining there since 2003 and have been operating 10 mines over the last few years and are competent mid-tier producers.

Longer term I see them continuing to develop some of their exploration projects in Ivory Coast (Côte d’Ivoire), expanding their mines in Senegal and Ghana, and possibly acquiring a more attractive Jr (they have strategic stakes in 5 Jrs – Oklo, Mako, Orca, Manas, and Loncor).

It will be a slow and steady wins the race type of growth, but with rising gold prices and lowering their costs over the next few quarters, I’d still expect it to be a solid divident-paying company.

delivery = deliver

divident = dividend

Good to know Ex. So many choices, so little time……

Resolute is more a steady rising value play, but will not have the torque of the micro-cap Jrs, so it wouldn’t be a company for those wanting that kind of huge leverage.

There are many investors that like holding a few of the larger producers, and Resolute seems like a good optimization and turnaround story for a larger diversified producer, for more of a 2 year time horizon. It wouldn’t be my top pick or anything, just a big company at a crossroads that seems to be doing the right things to propel it higher in valuation as they implement this revised balance sheet restructure, divestment of their Aussie mine, and optimization of the mining strategy at Syama.

We’ll see how things go in Q1 and Q2 when they post those results to see if things are trending the right direction for them.

Would like to own only stocks like Equinox, Leagold, K92 from the beginning -:)
McEwen Mining might one to consider.

I only owned Equinox from their beginning, and haven’t ever owned Leagold, but if I could take a time machine back I would 🙂

As for K92, it was their initial drill results in Kora that piqued my interest and their turnaround plan an low valuation after getting pummeled that caught my interest. I actually averaged up into over time, then started trimming last year into the strength, and then sold briefly on the j urisdiction concerns about Papua New Guinea that affected other mines. When I looked back on it (KNT) K92 Mining was one of the best investments I had held for the last 2 years, so I bought back in at better pricing than I sold for, and am riding with it once again.

I had MUX for a while, then got disenfranchised after their last capital raise during a low period, and sold out completely, but recently bought back in right before Christmas, and am willing to give them yet another chance to get their house in order.

I owned Leagold from the beginning, because of my good experience with True Gold/Endeavour Mining.

I’m in Pure Gold and Discovery Metals because of my good experience with Mark O’Dea with Oxygen Capital from True Gold, and he was on the board of directors of NexGen for a while. They do have a bit of a mess on their hands with Sun Metals at present, but I don’t blame Mark, but rather the direct management team and the way they released info in their last 2 press releases and the subsequent blow back from investors.

I’ve been considering Liberty Gold as well under the Oxygen Capital umbrella, but it’s already run quite a bit and I’m overloaded on gold companies. I just added in (HIGH) Highgold Resources this week as gold exploration drill play, instead of taking a position in Liberty Gold, but I am looking to wrap up a few other positions in the next major surge and then may come back around and look at Liberty Gold.

I’ve been very impressed with the action in (DSV) Discovery Metals with Mark O’Dea and team, and like (PGM) Pure Gold, but it has been less peppy than I was expecting as it heads into construction to be a new producer in the next year or so.

(KNT) (KNTNF) K92 Mining Inc. Named to 2020 OTCQX Best 50

by @nasdaq on 21 Jan 2020

“K92 Mining Inc. (TSXV: KNT, OTCQX: KNTNF) is pleased to announce it has been named to the 2020 OTCQX® Best 50, a ranking of top performing companies traded on the OTCQX Best Market last year.”

https://ceo.ca/@nasdaq/k92-mining-inc-named-to-2020-otcqx-best-50

(KNT) (KNTNF) K92 Mining Inc. Provides Operations and Stage 2 Expansion Update

by @nasdaq on 21 Jan 2020

– Stage 2 Expansion from 200,000 tpa to 400,000 tpa continues to progress well.
– Key equipment received in late-2019, including new production long hole drill, 17t-bucket underground LHD loader, twin boom autodrill development jumbo and integrated emulsion charging unit.
– Arrival of the production long hole drill marks the beginning of Kainantu’s transition from an exclusively cut and fill mine to a high-productivity, lower-cost, long hole open stoping extraction method.
– Primary ventilation system and underground electrical reticulation upgrade completed in December 2019, for a ~3x increase in ventilation fan power, resulting in a more than 100% increase in flow rates and immediate improvement to the mining cycle and operational flexibility.
– Record material movements (mill feed and waste rock) of 120,000 tonnes in Q4 2019 achieved from under 60,000 tonnes in Q1 2019. A key focus has been on waste development for the expansion and there are now seven sublevels established – previously three operating sublevels in 2018.
– Preparation for development of Kainantu Twin Incline has commenced with earthworks underway.
– Final stages of process plant expansion progressing with crusher upgrade, including installation of new secondary crusher largely completed. Additional flotation tank foundations and tank installation is complete, with piping and electrical underway.

https://ceo.ca/@nasdaq/k92-mining-inc-provides-operations-and-stage-2-expansion