Brigadier Gold (BRG.V) has started the first ever drill program on the Picachos gold-silver project in Mexico’s Sinaloa province. As mentioned in previous releases, the drill targets have been sub-divided in four target areas:

The focus of this maiden drill program will be on drill-testing the continuity and strike length of the known gold-silver veins on the project while perhaps also getting a better idea of how deep the vein system go. Additionally, the company is hoping to get a better understanding of the potential relationship between the precious metals veins and the copper porphyry target located a few kilometers away. While a copper porphyry is always exciting, it should be clear Brigadier’s first focus is to advance the high-grade gold-silver vein targets and hopefully discover more ore chutes like the past-producing San Agustin mine which really comprises just a small portion of the Cocolmeca vein system and this first drill program will drill-test a known vein structure for about a kilometer.

Although this initial drill program won’t be massive (the company is targeting a total of 5,170 meters of drilling and we anticipate the cost will be just over US$1M), the shallow targets will allow Brigadier to complete just over 40 holes and this will give Michelle Robinson and her team a lot of data to comb through in anticipation of a follow-up drill program. With just 58.5M shares outstanding, the current market cap of Brigadier is less than C$15M and any exploration success could have a positive impact on the valuation of the company.

While this is obviously excellent news as Brigadier is starting a drill program just two months after acquiring the project, investors should be aware the C$0.05 placement will become tradeable on October 4th and we can reasonably expect a negative impact on the share price. Back in June, the company issued 14 million units consisting of one share and a full warrant with an exercise price of C$0.10. At the current share price of C$0.25, the value of a 5 cent unit has increased to C$0.40 and it would be shocking if we wouldn’t see participants taking profits and clipping the warrant.


Disclosure: The author has a long position in Brigadier Gold. Brigadier is a sponsor of the website.

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