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Brixton Metals (TSXV: BBB) is teaming up with mid-tier producer Eldorado Gold (TSX: ELD) to advance its 100% owned, exploration-stage Atlin Goldfields project located in northwest British Columbia.
On Tuesday, the companies entered into a definitive agreement under which Eldorado will commit C$5.35 million on project exploration over a five-year period beginning Sept. 30, 2024, as well as make staged payments totalling C$1.1 million to Brixton.
By the end of the five-year period, Eldorado can exercise the option to acquire 100% ownership of the Atlin Goldfields project by making a cash payment of C$7 million. Brixton may choose to receive 50% of the payment in the form of Eldorado common shares.
Upon exercise of the option, Brixton will be granted a 1.0% net smelter return royalty, with Eldorado retaining an option to purchase half of the NSR for C$2 million prior to the commencement of commercial production at the project.
During the option period, Brixton will serve as the project operator, with Eldorado approving all work programs and budgets relating to the project. The latter will also support Brixton with ongoing environmental monitoring and community engagement efforts at Atlin Goldfields.
Located 9 km east of the town of Atlin, BC, the property comprises a 579-square-kilometre claim group that Brixton has consolidated over a three-year period since 2016, with the focus on locating the hard rock source of placer gold within the Atlin mining camp.
The Atlin gold camp has been producing gold for 125 years and is the second-largest placer gold producer in the province, with a reported 600,000 oz. of gold produced between 1898 and 1945. An estimated additional 400,000 oz. of gold have been produced since record keeping ceased in 1946, the company said on its website.
The Atlin gold camp holds the provincial record for the largest gold nugget, which weighed 2.6 kg (85 oz.) and was discovered on Spruce Creek, it added.
According to Brixton, two major placer producing creeks (Pine and Spruce) and many of the other productive creeks are located within its Atlin Goldfields project, and its exploration efforts have been finding the source.
To date, the Brixton team has completed over 39,500 metres of drilling across the property, and collected and compiled thousands of surface samples.
Rock samples returned values of up to 293 g/t gold from the LD showing in 2017 and 53.60 g/t gold from the Union Mountain showing in 2020. Drilling in 2023 returned 35 metres of 0.77 g/t gold including 19 metres of 1.34 g/t gold and 0.45 metre of 38.10 g/t gold at the Yellowjacket target. In 2019, the company drilled 8.53 g/t gold over 2 metres at the LD showing.
“We are delighted to have attracted Eldorado Gold, a well-established miner, to the Atlin Goldfields project. We look forward to working with Eldorado in advancing this exciting gold project,” Brixton Metals chairman and CEO Gary Thompson stated.
