Govn Nuisance will want to …tax the wind……Him and ALGorey……

Read Nuisance’s approval rating is soaring…sheeple love his lock down…and he’s got ambitions to be Emperor…er…sorry…the Prez, you know.

May see……..remember that….. 🙂
There is so much fiat/Debt from the Fake Fed now, more than double the amount in 2011……

Yeah I don’t doubt that Gold will eventually take out that $1921 high from 2011 as the macro economic picture has only deteriorated worse, but it just may take a pause that refreshes first.

We are back to the point, where the gold should have continued to go up , in 2011,
I think the Fed is going to keep printing….there is no stopping them….
Trumpster, want the market to go higher….and that is going to require even more printing

I can not disagree with a pull back…..just because the Fake Fed…wants to keep it in check…I would expect it also…..

It is a similar kind of vibe, and yet different as the whole world economy is on lockdown and the printing from the FED is so much crazier than anything they tried coming out of the GFC of 2008/2009.

Ex
94% recovered is really good. I am back to about 75% of where I was and basically a break even on the account.

Ex:
94% is a great recovery. I was about 50% down and back to about 75% of where I was. Some that are still underwater and slow to move are Bayhorse, Brixton,Group Ten, Kootenay,Precipitate, Sokoman and Silver Bear. Silver Bear possibly because of being in Russia and not because of grades. Discovery had a good pop today after being beat in the ground, and Great Bear, Silvercrest, Irving, and Lion One are moving again. So , about 4 more good days and I’ll be ready to pick up from where we left off the beginning of March. Maybe this time the algos will be with us and all of us and the banks will make money at the same time.

Thanks David. My overall account is actually up higher than it was in late February, but I had deployed new funds into my trading account in early to mid March, and so deducted those funds back out of that calculation since they weren’t in there in late Feb.

However, I used those funds to swing trade about a dozen stocks a few times each. For example I traded Alexco, Silvercorp, Americas Gold & Silver ,Coeur Mining, Maverix, Silvercrest, First Majestic, XLE (the oil ETF), and Ur-Energy and Energy Fuels about 3-6 times each. Mostly over 2-4 day periods, but I did do a few day trades each week to the point where I was 1 trade away from being switched back over to a “Pattern Day Trader” the lat 4 weeks in a row. 🙂

In addition, I added to positions in Discovery Metals, K92 Mining, Treasury Metals, Northern Vertex, Sierra Metals, Vizsla, and Trevali that I didn’t swing trade and just held.

I also traded and completely sold out of JNUG, XOP, McEwen, Delphi Energy, Balmoral, and TMAC.

I did over 130+ trades since Feb 28th, which I wouldn’t advise most people do, but I was making money on the vast majority of them, having fun, and building back out of the hole using micro-positions. Got to make hay while the sun is shinning!

I had slowed the trading frequency down by the end of last week though, and only trimmed back 2 positions today, so I feel like it was a flurry of activity and active volatility scalping, but now I can rest a bit easier with everything mostly back to where it was in late February.

I’m debating just moving the extra cash I injected into my trading account back into my bank account when I’m back at 100% recovered. However, now that I already have it in the trading account, it feels good having the extra cash on hand if things get squirrely again in the markets. It may not seem like it with all that trading into the crazy markets we just experience, but overall I am actually more conservative by nature, and like a nice nest egg of savings in cash, and would be less tempted to trade it if I just completely got it out of the trading account again. Decisions…. 🙂

Ha, with all this sitting in a chair lately and being quarantined at home, I’ve packed on some weight, so maybe I should get into steroids and start doing some power lifting at home. (lol).

Well the last month has been an extremely volatile period, but oddly, that is one of the times where one can swing trade easier in my opinion because as soon as it swings one way, it swings back the other, and lots of scalps can be had in the crossfire, so it was a great time to deploy cash and do some shorter-duration trades.

Yeah I have both Brixton and Bayhorse, but have just held those positions and haven’t really looked at them much as they are medium to longer term holds for me awaiting more news as a catalyst. I’ve been more focused on the more liquid mid-sized companies for the most part, and figured they would get more inflows of investors and funds cash and recover quicker.

Although BHS did trade at a suspiciously higher volume today compared to most days with 2.5 Million shares traded. Curious eh?

Ex, as of today, BBB has moved as much as 80% off its low without news. Again, the assets in the ground will keep it delivering as long as silver goes up.

Yeah, most of the miners have retraced most of their moves down on the technical bounce back up – no news required.

However, for many of the “drill plays” they don’t really get moving bigly until they put out some pressers on the success of their recent drill programs. Hoping BBB hits it big at Langis, as that is a very high grade Silver/Zinc/Cobalt area, and I was sad that they didn’t do any work on it in 2019. Based on their January market update, they really weren’t even supposed to be doing drilling a Langis, but we’ll see how it goes…

I trust Frieda more than Harry Dent.

Ha,ha………good one…….

I bought Argonaut today. Everything else JR on meltup thought good time as any to start core. JDST at record low. I’m too scared to take too much profit. MXSG still looks cheap?

Hi Doc – No I didn’t see any news from Alio and Argonaut today. Did anything change in regards to their merger?

Doc all I just checked both their websites, and ceo.ca and don’t see any news from Argonaut or Alio from today, but did see that both were up over 14% on the day… so that is nice. 🙂

Hey Buzz, nicely done as Argonaut is still really undervalued here and you should do well over time as they get rerated higher.

As for Mexus, yeah, it is such a tiny and higher risk microcap, I reduced down my position a bit last summer, and only have a small allocation to MXSG in my portfolio, but at least they are finally producing – albeit small amounts for now. I’d like to see them increase production over the next 2-3 quarters without any more setbacks, grow a bigger board, and put together a freakin’ Corporate Presentation to show to investors.

I wrote their IR guy over 2-3 years ago about getting a Corporate Presentation put together and posted on their website when we were emailing for a period of time, and he acted like it was a big undertaking. (WTF?? it is some slides and graphics based on your news release and company info) I also asked what the contingency plan was if Paul Thompson passed away, and if they they were considering forming a larger board of directors, and he kind of blew me off about it, so I reduced my position size down, and increased it again in early 2019, but sold into the summer liquidity last year when things were not happening fast enough in my estimation.

I still like Mexus and wish them the best, and if they got serious about production through the balance of this year, then I’d get more serious about adding to my position. They still have 10 bagger+ potential in my mind, but I’ll be honest, they’ve lost some of my confidence and patience the last few years. We’ll see how it goes…

I will say that a big positive for Mexus is their costs of $376 per ounce of Gold is pretty dang low, but so is their production – 10 ounces a day. If they could get that up to 100 ounces per day, it would get a bit more interesting.

________________________________________________________________________

(MXSG) Mexus announces operating costs lower than expected and confirms positive cash flow obtained

March 23rd, 2020 – Mexus Gold US (MXSG)announced that it is producing gold at a cost of $376 per oz. of gold. This figure is well under the $437 per oz. estimated in November 2019. The reduced production cost is a result of Mexus adding an activated carbon recovery system along with an electrowinning gold recovery plant. In addition, the company is mining a higher grade of mineralized material which brings the net cost down. The crew at the mine is gaining experience every day and taking expansion one step at a time. With a tightly controlled operation the company expects to be producing 10 oz. of gold per day within 60 days. Mexus is now operating at a positive cash flow which has been a long-standing goal of the company.”

http://mexusgoldus.com/mexus-announces-operating-costs-lower-than-expected-and-confirms-positive-cash-flow-obtained/

Wow. Haha. No correlation there.

I’d say the share price reflects little to no value for the cobalt assets which is why the management talked about spinning them out in June, 2018. Maybe someday…

There is a nice correlation to silver, like most of the JR miners have a correlation to silver prices as Silver and the miners tend to trend together.

The Cobalt projects they discussed spinning out ARE their Silver properties Langis and Hudson Bay that they just announced the drill program program on in late February of this year.

For most of 2018 it was all about base metals Copper at Thorn, and Cobalt/Nickel/Copper at Hudson bay. It wasn’t about their Silver.

Last year in 2019 they were only marketing to Thorn’s Copper/Gold and Atlin’s Gold prospects, and they were not promoting the Silver, and few of the investors discussing Brixton on ceo.ca, stockhouse, or Twitter were following Brixton for their Hog Heaven’t silver in the ground. The company has done little but relog old core from Pan American on Hog Heaven for the last 3 years.

Only this Jan & Feb did the company move their Gold properties down the batting order and they moved Hog Heaven (one of their Silver properties) up the list, and they claimed they wanted to JV out Langis & Hudson Bay their other Silver properties that got everyone excited in 2016’s surge. There wasn’t supposed to be much work done on these “non-core” properties, but the only drilling campaign they announced in late Feb was on Langis/Hudson Bay.

They’re branding and identity is all over the place, and many investors consider them Gold & Copper first (after having pushed Thorn & Atlin hard for years), and Silver second. Clearly they are spread among multiple commodities and properties, and they’ve had 3 different flagship properties in 4 years, so they’re all over the place.

For what it is worth, I’d be thrilled if BBB focused on Hog Heaven and Langis & Hudson Bay, which was not the case last year.

They’d get more of a following and traction if they really pushed their Silver/Zinc/Cobalt reserves as primary, and throttled back both Thorn & Atlin, both of which have yet to impress the markets and likely are not economical gold deposits at this point in time.

Re: “The Cobalt projects they discussed spinning out ARE their Silver properties Langis and Hudson Bay that they just announced the drill program program on in late February of this year.”

Ex, as it relates to my comments, that’s not true. The 69 million ounces I mentioned are at Thorn and Hog Heaven. Those ounces in the ground absolutely dominate the price action of the tiny company (roughly $15M U.S. Mcap right now). It doesn’t matter what they do or do not promote, silver in the ground is their main asset. Despite its other prospects, I bought it for its leverage to silver and am certain that most other shareholders did as well.

The stock went up 20-fold+ in 2016 and 4-fold last summer because the silver assets in the ground became much more valuable.

Their story doesn’t tell the story, the chart does.

I’m well aware of that Matthew, and was actually in BBB in 2016 on that move higher, and it went up on 6 press releases from Jan-June regarding picking up Langis and Hudson Bay, and their financing to drill those properties (as they didn’t even have Hog Heaven back then and it had nothing to do with why BBB went up in 2016).

They had hardly done any work on Hog Heaven the last few years, and most investors in it were interested in Langis/Hudson Bay, or the Gold drill junkies were interested in Thorn & Atlin.

I agree that the ounces in the ground are a value as well, but there are plenty of Gold and Silver stocks who’s charts correlate with Silver as mentioned below, and some explorers don’t have any official ounces in the ground and still followed a similar trajectory. The fact the Brixton’s chart looks like Silver, is because Silver and the miners tend to trend together. It isn’t unique to BBB’s ounces in the ground.

Here is an even tighter correlation to the Silver price from (AR) Argonaut Gold – a gold producer and developer.

http://schrts.co/DHRmTibC

Correct. Like silver, the junior miners offer leverage to gold as well as increased risk.

The point was that most miners mirror the correlation to the Silver price chart, and it doesn’t mean Brixton is any more correlated to Silver than Argonaut or Jaguar, or hundreds of other miners. Also, we’ve see time and time again, where drilling results, both good and bad, temporarily swamp a technical setup, and that is what drives the interest into folks positioning in the miners in first place, not strictly a price chart.

Ex, I did not claim that Brixton was more correlated to silver than other miners or unique in any way so you haven’t made a point on that issue.

As for news being the prime mover, you’ll know that’s the case when a stock acts differently than Brixton’s stock. News that matters causes share price action to DIVERGE from peers and or correlation to the metal (correlation to the metal breaks). That has not happened with Brixton during silver’s big moves, not in 2016 and not last summer.

Even Sprott’s new interest in Brixton did not stop it from tracking silver because his interest does not add value, it adds a little confidence among the retail crowd. $7.7M was raised at .18 but that did nothing to stop the shares from going to .08 even though Sprott took the lions share of the offering. If the news had mattered more than the silver price, it would have found a floor near .18 and the same goes for drill news.

We know what a big jump in the silver price does for the value of the assets in the ground but can only guess what news does for the share price unless silver is flat when news comes out.

The big moves in Brixton have been fully and easily explained by higher silver even though there is surely additional juice provided by news-chasing dumb money.

Like most juniors most of the time, Brixton’s news in recent years has been legitimate cause for optimism but has not added tangible value. That’s why Brixton and so many others keep revisiting old lows. They’re call options with no expiration date.

Matthew – Over longer periods of time, like the 6 year chart you posted, then I completely agree with you that underlying commodities prices are the “prime mover.” I didn’t say that news is the prime mover, but rather it is a catalyst, and it is also cumulative.

We completely agree there that in general, most miners follow the underlying trend of their respective commodity (be it Gold, Silver, Nickel, Copper, Uranium, Oil, whatever), if they are a liquid and regularly traded stock. There are hundreds of Jrs that don’t track metals prices well because they are no bid, or so thinly traded that there is no real pattern, because their fundamentals are garbage. Brixton is a company that was putting out enough interesting news in 2016 regarding it’s newly acquired Langis and Hudson Bay Silver properties from Jan – June, that it surged so much higher than many other Silver explorers, many of whom were so thinly traded they really didn’t catch much of a bid in 2016.

The Producers and Developers already have assets in place and ounce in the ground defined, and so they are absolutely going to run in correlation with the metals prices, because folks know they have ounces in the ground.

When 2016 hit, Brixton had some drilling on Thorn from 2015 that was interesting, but they didn’t have anywhere near an economic deposit or even a well defined deposit, and it was their picking up of the historically producing mines in Cobalt Ontario and the potential there, that got investors excited and dreaming of how big that could get that had them outperforming most of their peers, and remember it quite well.

All I’m saying is that when news first breaks, then for short duration periods it can swamp technicals to the upside or downside, and then that data and price action is ingested into the charts and TA takes back over. However, the fundamental news lingers with investors and analysts projecting what it could mean in price action, and is the juice that fuels new buyers and investors, providing the liquidity and trading in the first place.

It is only a very small segment of investors that would strictly use a price chart to pick a company and position in it. Some do. Most investors pull up their website, read their press releases for the last year or two, look at the fact sheet or corporate presentation, look at SEDI, and then decide if they want to invest in it. So from that sense it is the news and fundamental data that is reviewed by investors to cause them to hit the bid in the first place and provides the liquidity.

We’ve all seen the out-sized divergences so many times in hundreds of stocks that put out great drill hits, (or conversely dusters), or a long awaited economic report, or quarterly operational reports, or a new strategic partner, etc…

Most newsflow is only good for a 1-3 day pop or drop (initially), that does have pricing diverge from peers, or at least has them outperforming with more Beta. It does bring in more volume on those days, new buyers, new watchers, or old holders that get back in.

However, that news will get referenced long after the fact and is the fundamental foundation that build a company’s value and gets anyone to want to buy it. This lingering effect from news can’t be measure in isolation other than when it first breaks, because it has a cumulative effect on if a company is on target or floundering. With Silvercrest or Alexco, it isn’t that one or 2 news releases were the prime movers, but a series of continuous successes over time, that put those companies on investors radars as quality Jrs, so when price action says it is time to buy, then it gets bid.

So again, I’m not saying newsflow is the prime mover; but I am saying its adds to and enforces a trend to buy or sell from the market and makes up the fundamental data-set. So a good drill hit, or a new property acquisition, or Spott backing the financing to a lessor extent, is the catalyst that gets investors eyeballs to notice and position in a stock in the first place out of the sea of thousands to pick from.

Fundamental data is often what brings in the volume around big news days, or gets the stock on others watch-list, to poach it when it sells off like what we just saw when most miners crashed from late Feb to mid March, and then some (but not all) got bought back up. There has to be enough fundamental interest to bring in the volume and buyers on those dips, and stocks with no news for a year or more don’t get any volume or buying.

When the stock crashed, I didn’t need to think about whether buying Silvercorp, or Americas Gold & Silver, or K92 Mining, or Silvercrest, or Alexco, were good ideas, because I’d known for a long time they were solid companies, and I wasn’t alone as tons of buying and volume showed up in the quality Jrs, Mid-tiers, and Seniors in the last 3-4 weeks. Some may have used charts, but many bought the companies they felt were fundamentally sound, which is build upon it’s history of news and fundamental data.

Price action is the Prime Mover, but there would be no price action without the company fundamentals encouraging investors to follow and buy their stock.

Ex, the 21.5M inferred ounces at Thorn were in place by 2014 and the 47M+ at Hog Heaven in place by then as well. All of those ounces matter a great deal to the valuation of the company since the company has a tiny market cap. It IS that simple. The hard part is properly valuing those ounces without studies but you can bet that there are smart large shareholders who have a pretty good idea.

Re: “It is only a very small segment of investors that would strictly use a price chart to pick a company and position in it. Some do. Most investors pull up their website, read their press releases for the last year or two, look at the fact sheet or corporate presentation, look at SEDI, and then decide if they want to invest in it. So from that sense it is the news and fundamental data that is reviewed by investors to cause them to hit the bid in the first place and provides the liquidity.”

The majority you speak of are price takers, not makers. In other words, dumb money can’t drive a stock higher unopposed unless only dumb money holds the stock, and even then it wouldn’t last since the opportunity to sell an unjustified price would not go unnoticed. Smart players will always keep dumb money in check based on their superior knowledge. If they didn’t, there would be no rhyme or reason to the pricing of any stock.

Re: “We’ve all seen the out-sized divergences so many times in hundreds of stocks that put out great drill hits, (or conversely dusters), or a long awaited economic report, or quarterly operational reports, or a new strategic partner, etc…”

Yes, we’ve all seen news-driven outsized divergences but not in Brixton’s runs of last summer or of 2016. The fact is, most news has no value other than adding hopium. Even a good drill hole won’t add lasting value unless it is a company-maker that changes everything. I’ve owned more than a few and you can’t miss them. It would be nice to see one from Brixton but we haven’t yet.

Last but not least, Brixton went up 2.3 times as much as IPT in 2016 and 2.37 times as much as IPT last summer (based on weekly closes in both instances to reduce anomalous price action). The odds of such a coincidence seem very low unless neither company has experienced a material change in the 3 or so years between those moves. And that is my belief. Both are responding to the silver price and not the promising but so far worthless news in between.

Matthey – Those 47M+ at Hog Heaven were not in place in the 2016 run and those ounces in the ground had absolutely nothing to do with their outsized run in 2016 (which I was part of and remember quite well)

Brixton didn’t even acquire Hog Heaven until July of 2017.

The catalysts in 2016 were 6 news releases from Jan – June about Langis and Hudson bay, which is what moved Brixton from Gold to Silver focused. They are why I started following and bought the company, and there was nothing “dumb” about it.

Here is the press release for when BBB got Hog Heaven in July of 2017, a whole year after that huge run in 2016.

__________________________________________________________

BRIXTON METALS COMPLETES ACQUISITION OF PAST-PRODUCING HOG HEAVEN MINE FROM PAN AMERICAN SILVER WITH HISTORICAL ESTIMATE OF 47.3 MILLION OUNCES OF SILVER

July 18, 2017

http://brixtonmetals.com/brixton-metals-completes-acquisition-of-past-producing-hog-heaven-mine-from-pan-american-silver-with-historical-estimate-of-47-3-million-ounces-of-silver/

Here is the press release that lit the fire for Brixton and transitioned them from chasing Gold at Thorn to more of a Silver positioned company in Feb of 2016, and why many started following the company at that time. I wouldn’t call that dumb money, as they made out like bandits.
______________________________________________________

(BBB) BRIXTON METALS CLOSES ITS ACQUISITION OF THE PAST PRODUCER LANGIS SILVER MINE

February 2, 2016

Chairman and CEO of Brixton, Gary R. Thompson stated, “The Langis project represents a low cost opportunity with great discovery potential and a strong possibility to generate mineral resources based on past work and new exploration.”

http://brixtonmetals.com/brixton-metals-closes-its-acquisition-of-the-past-producer-langis-silver-mine/

Next the excitement in Brixton grew, as more investors wanted in on the exploration that would start at Langis. They also moved Langis ahead of Thorn as the flagship starting at this time and through 2018.

_____________________________________________________________________

BRIXTON METALS INCREASES FINANCING TO $1M

Feb. 25, 2016

“Brixton is an exploration company focused on the advancement of its projects toward feasibility. Brixton wholly owns two Canadian exploration projects, the Langis Silver project and the Thorn gold-silver project.”

Here is the link to that Feb 25, 2016 press release above showing the sea change and focus shift to Langis in early 2016.

http://brixtonmetals.com/brixton-metals-increases-financing-to-1m/

Just a few weeks later, as Silver miners were continuing to ramp up, Brixton provided an update on their new Langis Silver project and new flagship. I guess this news had no effect on why investors were flocking into Brixton? (No, it actually had everything to do why investors were flocking into BBB).

_______________________________________________________________________

(BBB) BRIXTON METALS PROVIDES PRELIMINARY MODEL OF THE LANGIS SILVER PROJECT

March 2, 2016

http://brixtonmetals.com/brixton-metals-provides-preliminary-model-of-the-langis-silver-project/

Then in April 2016, Rob McEwen became Brixton’s largest shareholder, and this raise even more eyebrows, and many dumb money investors (and I’m sure many smart money smaller funds) started watching BBB even closer after this.

_______________________________________________________________________

(BBB) BRIXTON METALS CLOSES $1,023,300 FINANCING

“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.”

http://brixtonmetals.com/brixton-metals-closes-1023300-financing/

The next news update from Brixton, just a few weeks later in April 2016, was that they were expanding their land position around their new Silver project Langis, not promoting their ounces in the ground.

________________________________________________________________________

(BBB) BRIXTON METALS CLOSES FINAL TRANCHE FOR AGGREGATE PROCEEDS OF $1,150,000

April 18, 2016

“The Company is pleased to announce that it is further consolidating its land position with respect to its Langis project and has entered into a purchase agreement with a local landowner. The Company proposes to issue 27,300 common shares to this landowner.”

http://brixtonmetals.com/brixton-metals-closes-final-tranche-for-aggregate-proceeds-of-1150000/

10 days after the last press release in April 2016 about expanding their land position around Langis, then Brixton poured on more good news with the acquisition of their 3rd project, Hudson Bay – another Silver/Cobalt project with historic past producing mines.

This was incredibly exciting news at the time for the dumb money crowd.

____________________________________________________________________________

(BBB) BRIXTON METALS ACQUIRES THE PAST PRODUCER HUDSON BAY SILVER MINE

April 28, 2016

“Brixton Metals Corporation 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.”

“The Hudson Bay mine operated from 1905 to 1943 and again in 1953 and produced a total of 6,452,266 oz of Silver, Sergiades, 1968. The average grade mined from 1905-1916 was 123 oz/ton Ag, Sergiades, 1968. Production came from primarily two narrow veins systems: Vein #1 and Vein #2 both had a strike length of 400 feet and extended 200 feet vertically, Sergiades, 1968.”

http://brixtonmetals.com/brixton-metals-acquires-the-past-producer-hudson-bay-silver-mine/

Next in May of 2016, Brixton got a good social license with their First Nations partners at Langis to proceed. Again, another in a series of positive pressers for the prior 3 months, as BBB was surging higher.

_____________________________________________________________________

(BBB) BRIXTON METALS AND TIMISKAMING FIRST NATION SIGN EXPLORATION AGREEMENT

May 10, 2016

“Brixton Metals Corporation 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/brixton-metals-and-timiskaming-first-nation-sign-exploration-agreement/

The best news did zero for the stock price in 2016…
https://stockcharts.com/h-sc/ui?s=BBB.V&p=D&st=2015-11-03&en=2017-03-04&id=p48562715783&a=738479055

It’s still funny that it returned the same great leverage to IPT last summer even though some shareholders have been unhappy with management.

Hopefully there will be no news as silver flies this year so you can see that the stock will perform as usual just based on the silver price.

Next up in May 2016, Brixton again expanded it’s land package around their new Silver project Langis. Nothing about ounces in the ground, just adding land, and the stock kept ratcheting higher (far more than most Silver explorers not putting out news).

__________________________________________________________________________

(BBB) BRIXTON METALS ADDS LANDS AT ITS LANGIS SILVER PROJECT AND PROVIDES CORPORATE UPDATE

May 20, 2016

“Brixton Metals Corporation is pleased to announce it has entered into a purchase and sale agreement to acquire a 100% interest in the claims near its past producing Langis Silver mine. Brixton will issue 10,000 common shares of the Company and make a cash payment of $3,000 to acquire the Property, subject to a 2% net smelter royalty. Brixton holds the option to purchase the NSR at $250,000 per 0.5%. In addition Brixton has staked 461 hectares of mineral claims in the area which are subject to approval by the Ministry of Northern Development and Mines of Ontario. Brixton’s lands in the Langis and Cobalt camp now total 3,276 hectares.”

http://brixtonmetals.com/brixton-metals-adds-lands-at-its-langis-silver-project-and-provides-corporate-update/

I give up Matthew.

1) I’ve already agreed several times that on a longer time frame that liquid miners will correlate with the metals prices.

2) I just showed you that the move in 2016 had absolutely nothing to do with the 47Million ounces in the ground at Hog Heaven because they didn’t even buy it until July 2017, long after the explosive move in 2016 was over.

3) I just showed the 5 Press releases that fueled investor interest in Brixton as a new Silver explorer, as the gold exploration from 2015 at Thorn showed it was not economic, hence why they went out and acquired a new property.

Those news releases are what got investors interested to follow Brixton in the first place and why years later it can correlate with a Silver producer like Impact that does have ounces in the ground the correlate with the Silver price moves.

I was actually tracking and investing in Brixton in 2016, and nobody was talking about their ounces in the ground, but tons of investors were discussing the new project acquisitions at Langis, and then more land around those, and then Hudson Bay. That is why Brixton took off in 2016, and outperformed 95% of other miners at that time.

Ok, so the company had 21.5 million ounces in the ground in 2016 but it also had a lot fewer shares out and a much lower market cap. Still a no-brainer that a much higher silver price would add significant value to that asset.
All news is good news in an uptrend and good news doesn’t matter in a downtrend. All those press releases would have resulted in nothing had silver remained flat that year and you saw on my chart above that good news could not stop a downtrend in the stock. And that downtrend began when silver turned down.

IPT went well over ten-bagger on no significant news during that 6 month run for crying out loud. How is it so hard to see that the silver price is virtually everything to most miners? Yes there are really bad and really good stocks that buck what silver is doing but Brixton wasn’t one of them. Its performance was helped more by having very few shares out and starting at a nickel than any of those press releases. Total volume below a dime 4 years ago was tiny even for a tiny junior. Volume these days is comparatively massive. But I digress…

On second thought, I’ll make it clearer for you. If we were to measure Brixton’s performance from the first day in which it had just one-third of IPT’s volume at its low, we’d have to measure it from 10 cents. And that would put its gain at 1,100%, just a hair above IPT’s 1,063%. In other words, the portion of the shares that went over 20-bagger was statistically ZERO and provided life-changing gains for no one on the retail side.

Matthew, I understand the point you’re making but just disagree as to what caused the 2016 spike in Brixton out of a sea of literally 600-800 other explorers at that time.

We agree that both the Silver & Gold price helped in 2016, and I’ve said about 4 times now that over the long haul, once a miner is more liquid and widely followed, that it will track with the underlying metals prices.

In 2015 and early 2016 Brixton was not widely followed because they had one sub-par gold exploration project in the Golden Triangle, like dozens of other companies.
The reason Brixton left most of the other Gold and Silver microcap explorers in the dust in 2016 and where all the investor interest came from was the new Langis and Hudson bay acquistions, and Rob McEwen becoming a shareholder,etc… look at the press releases listed above.

It isn’t a theory to me, as I lived it and was following this stock closely back then, when you were not. A major acquisition by adding a 2nd and 3rd project and signalling they were going more Silver than Gold was why there was such a huge response from the marketplace.

Yes the tighter share structure at the time and microcap status helped, but there were tons of other microcap explorers that didn’t have nearly the same move even as Silver was going higher.

The reason most explorers were not 10 baggers in 2016 is because they didn’t have such significant newsflow, but the ones that did have key news hitting in the first half of 2016 like Canasil/Orex and Silvercrest were also 10-13 baggers back then. It wasn’t just share structure an technicals — their news is what was driving the interest, precisely because there were so many unknowns. Most of the explorers didn’t come anywhere close and didn’t have any money to put out substantial news.

The rest of the mining companies that really performed in 2016 were producers like Impact or Americas Silver or First Majestic, or developers with known resources like Alexco or Bear Creek Mining. Those track the metals prices and outperform, but they are much different companies than news driven explorers.

So yes, Impact in 2016 was apples and oranges to Brixton, since they were a producer then and now, and did have known ounces in the ground at that time, and everyone could do the math on their improving economics as a producer. So yeah, of course they correlated with the metals prices just like most of the smaller producers or developers with assets defined.

Looking at Brixton today is totally different than in February of 2016, because now they have bought Hog Heaven in 2017 and Atlin gold, and have further defined their resources and found a bunch of Copper at Thorn on different targets they hadn’t even found in 2016, and they did do a ton of work on Langis and Hudson Bay in 2017 and 2018 before abandoning them, as Silver prices tanked.

I’m thrilled that Brixton is drilling currently at Langis/Hudson Bay, because those assets are why I got into Brixton in 2016 — not for Hog Heaven in Montana, that likely doesn’t have a good chance of getting into production with so many anti-mining groups in Montana. They’ve blocked the nearby mines from Coeur for years, and I don’t anticipate it will be any different at Hog Heaven. I also didn’t get into Brixton for Atlin, and feel it has only been a distraction and spit their focus too many different directions.

The initial plan in 2016 for Langis and Hudson bay was to fast-track those properties back into production, since there were mines, infrastructure, power, water, permits all in place. Instead, they diluted their focus down by picking up Hog Heaven from Pan American (which was non core to PAAS for a reason), and further split their focus with Atlin. They should never have gone off chasing diamonds for half of 2018 and as a management team they’ve been all over the mulberry bush.

I hope they hit it big some big grade that gets the market excited, so I can exit my Brixton position as there are other teams in the mining sector with much better strategies, much better execution, and a better track record.

Like I said, there is no chance Brixton would have performed in the absence of silver’s rise in 2016 and the fact that virtually no retail investors benefited from the first double puts things in proper focus. In fact, virtually no one participated in the second double either. Not meaningfully anyway. Microscopic market caps combined with a tiny share count makes big moves happen easily. So a large portion (more than half) of Brixton’s gain that year was not at all what it seemed and therefore the performance was not nearly as elite as you made it out to be.

Re: “It isn’t a theory to me, as I lived it and was following this stock closely back then, when you were not.”

That is an unsound and illogical argument and you have tried it about five times now.
You also held JAG when it was a horrible overpriced company with criminally inept management or worse.