Erik Wetterling – Recapping Recent News Catalysts From Eloro Resources And Brixton Metals
Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins us to review some recent news catalysts out of 2 different exploration companies, Eloro Resources (TSX.V: ELO) (OTC: ELRRF) and Brixton Metals (TSX.V: BBB) (OTC: BBBXF).
Eloro Resources made recent land acquisitions of the Mina Casiterita and Mina Hoyada properties that cover 14.75 km2 southwest and west of their flagship Iska Iska Project. Erik feels news like this is usually shrugged off by the market, but that the company has good indications their silver-tin porphyry system extends onto this land, and that investors get the optionality of future drilling upside on this land package without much value being priced in.
Next we discussed the recent news from Brixton Metals, which caught Erik’s attention because they brought in BHP Group (NYSE: BHP) as key strategic stakeholders. This is significant because as a major base metals producer they have a very experienced team that has now vetted the Camp Creek Copper dominant porphyry project as prospective for a discovery. Erik points out that since BHP is most mostly interested in the large copper project potential in their strategic positioning, that this also gives investors additional potential upside for further gold discoveries a the Trapper Gold Target, as well as the Outlaw Gold Target and the Metla Copper-Gold Target.
*In full disclosure, some of the companies mentioned by Erik are personal positions in his portfolio and may be covered or site sponsors on The Hedgeless Horseman website.
I was doing some research on a CDN mining company located in The Kyrgyz Republic (Kyrgyzstan). This is a landlocked country located in the middle of The Asian continent. It borders Kazakhstan in the north, China in the east, Tajikistan in the south, and Uzbekistan in the west. I found it interesting that my reading had taken me to a country most never realize is out there. LOL! DT
Yes, gotta love all the “stan” countries in eastern Europe / western Asia.
Many of those are ex-soviet bloc countries.
If The Soviet Union hadn’t fought and lost in Afghanistan, (The Graveyard of Empires) none of those Stan countries would be around today. DT
I realize it’s a holiday long weekend for many, but it’s surprisingly quiet on here in light of the topic of this chat with Erik and companies discussed.
Usually we get a few BBB charts and Brixton comments week after week on other editorials. Then we do an interview with Brixton as a focus and nobody says anything. Haha!
The news about BHP coming in to be a strategic shareholder to focus on the copper prospects at the Camp Creek target at Thorn was pretty significant, because Gary has said for years that it’s just too large of land package for a junior like BBB to properly explore all on their own, and that they ultimately wanted to get a Strategic Investor involved. Well they hooked the biggest major out there, and that likely attracted a number of new eyeballs to a project they’ve been working on for about a decade now. Also, as Erik mentioned, there are all the gold targets at Thorn that the Brixton exploration team can keep working on.
I agree with Erik’s thinking about these 2 companies and own both.
That’s my contribution and I am sticking to it.
+2
The trouble with Brixton is the herd hasn’t shown up yet. My average price is 13 cents, but I am waiting for the rest of the market to confirm my move. I am patiently greedy! DT
Great interview. I like both companies. I didnt know about the BHP news. I recently took a trading profit at the last peak and am hoping to get a little more pullback before entering back in. I thought about pulling the trigger today, but decided to wait until Monday. I bought more Eloro on the land acquisition news. I recently also bought some (name escapes me currently…) that recent swapped out their Canadian claims for Land next to Iska Iska. Anxious to see how that story develops.
Good thoughts Charles. Was the company you were mentioning nearby to Eloro that swapped out their Canadian properties to focus on Bolivian Tin/Silver possibly Whitehorse Gold?
That is a new company Cory & I have been speaking to that is now being incubated by the team from Silvercorp. They already incubated New Pacific Metals in Bolivia as well to great success, and Whitehorse Gold is their new endeavor.
Hi Ex – No it is Cartier Resources. Bob M wrote about it on one his blog post. I just took a small starter position as it’s pretty prospective and drill results are a ways off I believe.
Here is the article on Cartier:
http://www.321gold.com/editorials/moriarty/moriarty102722.html
Interesting Charles. We talk to the folks at Cartier regularly, and I had totally missed the heads up on their move into Bolivia. It’s odd because they just got done consolidating the Canadian project earlier this year. Thanks for the heads up, and we’ll need to get them on for a company update soon.
Hi Ex, aren’t you confusing Cartier Resources with Cartier Iron. Cartier Iron is moving into Bolivia not Cartier Resources. The symbol for Cartier Iron is CSX- CFE. I haven’t bought into them because I believe they are on track to do a reverse split. DT
I noticed Cartier Iron has changed their name to Cartier Silver Corp., and the reverse split happened about ten days ago. The management involved in Cartier Silver Corp. are almost the same as the ones in Eloro Resources and their properties are very close to one another. DT
Hi Charles, I think you are mixing up Cartier Resources with Cartier Iron, now Cartier Silver Corp. two completely different companies and projects. DT🙄
Most people don’t do any due diligence, they simply buy into a position based on someone else’s recommendation. DT
Ah yes. Thanks DT. I was thinking Charles meant Cartier Resources… not Cartier Iron. Thanks for the heads up and that clarification.
Hi DT – I wish I had more time for due diligence. Unfortunately I have a full time job and family and my wife already thinks I spend entirely too much time reading about stocks. So yes I do rely on others opinions and then technicals. Due diligence is very important to verify a story. I know that from being a commercial real estate underwriter for many years and dealing with a fair number of liars and cheats in that industry. Maybe when I retire I’ll find more time for that, but until then I have to rely on the people on this site and others that know more about mining than I do.
Erik’s points are good ones but let’s not forget the carried interest in Hog Heaven. Similar to BHP, Robert Friedland is unlikely to show the interest that he has unless there’s great potential. Then there’s the new JV at Atlin and of course Langis has obvious potential as well.
I told Glenfidish a long time ago that the treasure IS there and I am glad that Brixton controls so much good ground. If the company does its part, as it has been, the big boys will appear to do the heavy lifting.
The latest news about the closing of the BHP deal contained another meaningful vote of confidence:
“Concurrently with the closing of the Private Placement, Crescat Portfolio Management LLC (“Crescat”) elected to exercise its pre-existing right to participate, on up to a pro rata basis, in equity financings by the Company and acquired an additional 5,555,556 Common Shares for aggregate gross proceeds of C$1,000,000.”
Brixton’s upside potential is staggering compared to its downside risk from here.
Good thoughts Matthew on the other properties value being mostly overlooked at present (like Hog Heaven, the Atlin Gold optioned out, and Langis/Hudson Bay). I was actually going to bring up Hog Heaven and Robert Friedland’s stake in that as another overlooked value driver, but we were running out of time when we recorded that interview yesterday with Erik.
Compared to where they were 2 years ago, Gary and the Brixton team have done a good job of getting much more focused as a company, they’ve now brought in more capital and expertise on their bigger projects Camp Creek for copper and Hog Heaven for silver/gold/copper, to a few of the big boys (which needed to happen as there was no way they could work on all of that simultaneously). In addition they’ve optioned out Atlin to another exploration company, which was the smart thing to do, as they weren’t really giving it enough focus.
This allows their team to not be pulled so many different directions, and finally put their primary focus on the gold projects on their Thorn land package like Trapper, Outlaw, and Metla. Brixton has already had a nice move off the bottom the last 2 months, but it could go up many multiples from here and really surprise folks to the upside.
Things looked great way before 2 years ago in my book and apparently Eric Sprott agreed as did others who took part in the many oversubscribed private placements. Just one example of the meaningful work done before 2 years ago can be seen in this press release regarding Hog Heaven 5 years ago:
https://brixtonmetals.com/brixton-metals-closes-financing-and-provides-update-on-its-hog-heaven-ag-au-project/
Robert Friedland came along 3 years later and without a doubt due to the good and thorough work Brixton had already performed.
There are plenty of other examples of Brixton’s fruitful efforts well before 2 years ago.
Understood. The point was that for a few years 3-5 years back, like 2017, 2018, 2019, and 2020, they were taking a much more scattershot approach, and jumping around from project to project without making much meaningful progress on any of them. They had spread themselves much too thin, and had changed their corporate presentation a number of times continually changing which projects they were putting the focus on, and as a result they had a bit of an identity crisis and some market confusion as their direction. Gary admitted as much in a few interviews with other platforms and also was quite candid about that when Cory & I spoke to him for an update in early 2021.
About 2-3 years back they were trying to do a little work on Thorn, a little on Atlin, a little on Hog Heaven, and sporadic work on Langis, and it was not really moving the needle much. The reality was they needed to get more focused as they didn’t have the capital or manpower to work on all those projects simultaneously. Getting the transaction done with Robert Friedlands company at Hog Heaven was check box number one, then optioning off Atlin was check box number 2, and then this recent deal with BHP for the copper prospects at Thorn is a big check box number 3.
It was clear a few years ago they needed to option some of these projects off or bring in some strategic partners to help out, and now they’ve done that. This frees them up to do more concentrated work on the gold targets at Thorn and use their team to build value on those the projects that they’ve been working on for over a decade. It’s a much more streamlined and focused story now.
The reality is that things happen in due time with early stage explorers. Virtually all explorers go through periods when the needle doesn’t move much because that’s the nature of the business. In Brixton’s case it still performed well along with the sector in general when conditions were bullish for the sector. That’s something countless (probably most) explorers fail to do.
The chart clearly shows a bullish volume pattern (accumulation) for over 3 years and for good reason.
As everyone here knows I have not been critical of the company’s efforts over the years and have been rewarded greatly for my aggressive buying when things get ugly. Likewise, I’ve been greatly rewarded for completely avoiding the likes of AXU and PGM for the last few years.
At the end of the day, risk-reward profiles matter much more than beautiful stories that are based on everything going exactly to plan.
Maybe you could get Gary on the show to ask him if he’d change the way he’s done things over the last 3 to 7 years if he could.
As I said to you years ago, I’m glad management didn’t push harder sooner because doing so would have gone against the big cycles that drive the sector and it’s better to stay in sync with them for best share price results. Brixton is now well positioned to fly to multi year highs and beat most of the sector because the technicals and fundamentals/boots on the ground are so well aligned with important cyclical aspects.
Close next week at just .21 and we will have a big Andrews fork break out (of course a higher price would be better)…
https://stockcharts.com/h-sc/ui?s=BBB.V&p=W&yr=7&mn=1&dy=0&id=p76281449467&a=1219716045
Four straight weekly closes above the weekly Ichimoku Cloud for the first time in four years…
https://stockcharts.com/h-sc/ui?s=BBB.V&p=W&yr=2&mn=8&dy=0&id=p05173033119&a=1238084544
Due diligence is very important. I just haven’t figured out market intervention and lack of Regulatory enforcement.
So far on this Black Friday to kick off the retail holiday shopping season…. it’s pretty muted out there in most markets, with the vast majority of sectors and currencies only slightly up or down on the day. So far at least there don’t appear to be the same market fireworks we saw last year on that Black Friday.
I hope all our KER crew in the US had a happy Thanksgiving yesterday with friends, family, food, frivolity, festivity, and fellowship.