SYAAF - Brunswick Exploration Has Built Up A Very Large Lithium Exploration Stage Portfolio In Canada

Summary

• The most promising properties are the James Bay Properties in Quebec and the Hearst Project in Ontario (Decoy pegmatite has grab samples of up to 5.15% Li2O, visible spodumene).
• At James Bay, the Mythril Property lies directly adjacent to Patriot's monster size Corvette Project and Anatacau West lies immediately adjacent to Allkem's James Bay Project.
• Valuation is not exactly cheap on a C$171m market cap, but given the large portfolio and exploration upside potential, it is ok. Risks revolve mostly around exploration and funding.
• We view Brunswick Exploration as a speculative accumulate (high risk/high reward), suitable for a 5-year plus time frame.

This article first appeared in 'Trend Investing Investing Group' on February 2, 2023 at C$0.69; but has been updated for this article.

Note: The above pic is an image of Canada.

Brunswick Exploration Inc. [TSXV:BRW] (BRWXF)

• Brunswick Exploration Inc. ("Brunswick" or "BRW")) [TSXV:BRW] (BRWXF) is a Canadian junior explorer that has spent the past 1-2 years buying up a sizable portfolio of very early stage lithium exploration properties across Canada. The properties are either 100% owned or optioned to own a large percentage. Prior to that the Company was a gold explorer in Canada.

Brunswick state on their website: "We are among the only public company that is aggressively and systematically conducting grassroots exploration for lithium in Canada using state-of-the-art exploration technology."

Brunswick state : "In Quebec's James Bay region alone, we have secured over 250 untested pegmatites measuring over 600 meters in strike length."

As shown below the stock has recently surged higher as nearby Canada projects from Patriot Battery Metals [TSXV:PMET] [ASX:PMT] (PMETF) and Winsome Resources [ASX:WR1] (WRSLF) have garnered a lot of attention towards juniors operating in the James Bay region.

Brunswick Exploration 5 year price chart - Price = CAD 1.01 ( source )

Brunswick's projects

Brunswick's properties/projects include (all in Canada):

• James Bay (Baie James) Properties (Quebec) ( Mythril, PLEX, Mirage, Elrond, Anatacau, and many others )) - 58 targeted properties hosting over 250 untested pegmatites over 600 meters in strike length.
• Pontiac Lithium Property (Quebec) - Exploration update here .
• North Shore Property (Quebec) - 30 pegmatite dykes across a strike length of at least 1,200 meters. Exploration update here .
• Hearst Project (Ontario) - Over 130 mapped/interpreted pegmatite dykes of which 25 are between 500-2100 metres in strike length, with visible spodumene present. Easy access by forestry roads. Drill program scheduled to start in H1, 2023 and initially focused on the Decoy Pegmatite where spodumene is visible.
• Lyn Lake (Manitoba) - Contains several untested S-type pegmatites in areas that have seen no lithium exploration.
• Trans-Hudson & Lake Athabasca (Saskatchewan) - 125 untested S-type pegmatites with a minimum strike length of 500 meters. Evidence of LCT pegmatites only now being uncovered. Excellent road and power infrastructure.
• Catamaran ("BMC")(New Brunswick)
• SMB (Nova Scotia)
• Newfoundland - Multiple kilometric pegmatites were identified with many having seen little to no lithium exploration. Impressive image here .

+ newly acquired properties (not yet shown on the map below)

• Mirage Project (James Bay, Quebec) - Contains the presence of several angular pegmatitic glacial boulders hosting well-defined, decimetric spodumene crystals.
• Hanson Lake Project (Saskatchewan) - Contains four spodumene-bearing pegmatites hosted within a much larger pegmatite field, none of which has been drilled. More details here .

Location map showing the locations of Brunswick's lithium projects (blue dots) across Canada ( source ) - As of mid-January 2023

All of Brunswick's projects are in the very early stages of exploration so some patience will be required.

Today's article will discuss what appear to be the most promising properties/projects and those that will be the focus for 2023 exploration (James Bay Properties in Quebec and the Hearst Project in Ontario).

James Bay Properties - Mythril, PLEX, Anatacau, Mirage, Elrond

Mythril (option to acquire 85% from Midland Exploration [TSXV:MD]) lies directly adjacent to Patriot's monster size Corvette Project. More details on the November 2022 Mythril acquisition news here .

PLEX (option to acquire 90% from Osisko Development Corp. [TSXV:ODV]) (19,175 hectares (192 sq. km.)) lies along the same La Grande Greenstone Belt that Corvette sits on, 75kms to the West of Corvette, and along from Winsome's Cancet Project. The Property is accessible year-round and located near the Trans-Taiga highway, providing access to the La Grande-4 hydroelectric complex. More details on the December 2022 PLEX acquisition news here . Brunswick state :

Compilation work by BRW has identified over 100 individual pegmatite outcrops and numerous pegmatite dykes on the Project of varying length, including one pegmatite dyke measuring 1.7 kilometres strike length.

Next steps include : "A regional prospecting campaign in late Q2 2023 to explore both the PLEX and Mythril Projects and multiple other smaller BRW claim packages located in the northern half of the James Bay-Eeyou Istchee region. The campaign will include sampling and analysis of pegmatite from recovered drill core on the PLEX Project and will likely lead to more follow-up trenching and/or drilling beyond BRW's current exploration program for 2023."

The Mythril and PLEX properties are strategically located. PLEX sits on the desirable La Grande Greenstone Belt ( source )

Anatacau West and Anatacau (option to acquire 90% from Osisko Development Corp.) (370 square kilometres) - Anatacau West lies adjacent and East of Allkem's [ASX:AKE] (OROCF) James Bay lithium project (40.3Mt Indicated Mineral Resource Estimate grading 1.4% Li2O). Brunswick state : "Quebec government records indicate the presence of spodumene mineralization further east and south on the Property in three distinct outcrop locations.....Drilling in 2018 by Galaxy Lithium intersected spodumene mineralization near the Property boundary." More details on the November 2022 Anatacau acquisition news here .

Location map shows Anatacau West immediately adjacent to Allkem's James Bay Project ( source )

M irage (staked claims and option to acquire 100% of the "Lac Escale" claim block from Globex Mining Enterprises [TSX:GMX]) (total Mirage properties are 8,884 hectares). Brusnwick state : ".....a geologist that worked the area twenty-five years ago for gold exploration led to the staking of the BRW claims, as he recorded the presence of several angular pegmatitic glacial boulders hosting well-defined, decimetric spodumene crystals, located at the SW extremity of the newly staked claims......The presence of sizeable angular spodumene-bearing float on the project combined with lithium geochemical anomalies point to the local presence of LCT pegmatites. We will be providing updated exploration plans for 2023 in the coming weeks which will include the exciting new Mirage Project." More details on the January 2023 Mirage acquisition news here . Also more details and a map here .

Elrond (option to acquire 85% from Midland Exploration). Details here .

Location map showing the James Bay properties (red are optioned to buy) (yellow are 100% owned)

James Bay is home to several world class lithium projects including the NAL Abitibi Hub (75% Sayona Mining/25% Piedmont Lithium [ASX:PLL] ( PLL )), Moblan (Sayona Mining ([ASX:SYA] (SYAXF)), James Bay (Allkem [ASX:AKE] (OROCF)), Rose (Critical Elements [TSXV:CRE] (CRECF)) and Whabouchi Nemaska Lithium (50% Livent ( LTHM )). Also more recently huge lithium discoveries from Patriot Battery Metals and Winsome Resources.

Hearst Project (Ontario)

The entire Hearst Project includes 226 claims and covers 29,805 hectares with a combination of staked claims and optioned claims. This includes the optioned claims (to acquire 100%) that contain the Decoy spodumene-bearing pegmatite. Historical chip samples at Decoy contained up to 5.15% Li ₂ O. The property package contains over 130 mapped/interpreted pegmatite dykes of which 25 are between 500-2100 metres in strike length. Brunswick's CEO states : "Hearst area is a fantastic location with great access to infrastructure. We have now consolidated several high-priority targets centered around known mineralized LCT pegmatites. These pegmatites are poorly exposed but open in all directions, and there is high potential for additional discoveries in our newly consolidated package." More details on the October 2022 acquisition news here .

Hearst Project showing the large Decoy pegmatite where historical chip samples contained up to 5.15% Li ₂ O ( source )

Hearst Project pegmatite showing visible spodumene as well as tantalite, zinnwaldite, & lepidolite ( source )

Catalysts

• H1, 2023 - Exploration activities across several properties with a focus on the James Bay properties and the Hearst Property.
• H1, 2023 - Maiden drill programs targeted for the Anatacau Property ( late Q1, 2023 ) in James Bay and the Hearst Property (Decoy pegmatite) in Ontario. Details thereof, including two drilling programs, will be announced in early February 2023.

CEO discussing 2023 next steps ( source )

Authors note: Hopefully Brunswick will also move fast to get some initial drilling done at Mythril (adjacent to Patriot's Corvette Project) and PLEX.

Management and shareholders

Brunswick's management appears to be extremely proactive and has been moving at lightning speed the past year with numerous lithium property acquisitions in Canada. Their background is mostly with gold exploration so time will tell how they go with lithium.

Bob Wares is the Executive Chairman. He is a professional geologist with over 40 years' experience in mineral exploration and development, mostly in Eastern Canada. He was one of the three original founders of Osisko Exploration/Osisko Mining Corp. and was responsible for the discovery of the Canadian Malartic bulk tonnage gold deposit, which was subsequently developed into Canada's largest gold mine. He is the recipient of various awards.

Killian Charles is President and CEO of Brunswick Exploration since 2020. Prior to this, he was Vice President-Corporate Development for Osisko Metals, Inc where he now remains as a Special Advisor. He has a background as a mining analyst.

You can read more details on the full team here and about a new addition here , which includes adding a second geologist François Goulet . He has extensive experience working in the James Bay region of Quebec.

Insider ownership is very good at ~29% ( source )

Valuation

Brunswick's current market cap is C$171m with debt of C$672,700 (some small past debt was settled in Nov. 2022). In late December 2022 Brunswick raised C$5.5m in an equity raising which the Company say funds them for 2023 exploration activities. They also announced a further C$6m equity raising on February 13, 2023.

On December 22, 2022 Mr. Killian Charles, President of BRW, stated : "With the closing of this financing, we are now fully financed to launch one of the largest grassroot lithium exploration programs globally. We believe 2023 will be an exciting year for the Company as we look to begin filtering the hundreds of untested pegmatites in our portfolio."

We were unable to find any analyst's price targets due to the early stage.

Valuation looks to be ok when you consider the enormous size and quality of their lithium property portfolio. Early stage so valuation will also depend on their progress and results in discovering a significant lithium resource.

Risks

• Economic slowdown resulting in less EV sales, therefore less demand for batteries and hence lithium.
• Falling lithium prices.
• The usual mining risks - Exploration , permitting, funding , production, partner, environmental risks, and project delays. The enormous portfolio of lithium projects will require significant future funding both to fund exploration and also to pay multiple project option payment agreements, so expect stock dilution.
• Business risks - Management, liquidity, debt, and currency risk. Note that Executive Chairman Bob Wares owns ~25.6% of the shares of the Company which is slightly over 44m shares.
• Sovereign risk - Low in Canada.
• Stock market risks - Dilution , lack of liquidity (best to buy on local exchange - TSXV), market sentiment.

Key recent news

We have covered most of the recent acquisition news in the article. You can read all the Company news here .

Further reading

• Kaiser Watch January 19, 2023: A James Bay Area Play Tipping Point? (audio, from the 14:30 minute mark)
• Nov. 2022 - Brunswick Exploration I Red Cloud Fall Mining Showcase 2022 (video)
• Jan. 2023 - BRUNSWICK EXPLORATION PROVIDES 2022 LITHIUM EXPLORATION REVIEW AND CORPORATE UPDATE

Company strategy summary ( source )

Conclusion

Brunswick has rapidly put together an excellent large sized portfolio of very early stage lithium properties in Canada relying mostly on nearology and the existence of pegmatites, some with spodumene or other indicators of lithium. Nearology to Patriot's Corvette Project, Winsome's Projects, and Allkem's James Bay is a key reason for our enthusiasm in the stock.

Near term catalysts include exploration activities across the properties (notably at the James Bay properties but also at the Hearst Property in Ontario) with some drilling targeted for H1, 2023 at Hearst and Anatacau West (James Bay, Quebec). Also any further acquisitions.

Management appears to be extremely proactive with very good experience, and have been moving at lightning speed the past year with numerous lithium property acquisitions in Canada. Insider ownership is very good.

Valuation looks just ok on a current market cap of C$171m provided the company can successfully progress one or several of their projects. The stock has recently surged higher based on several exciting acquisitions, so some near term caution may be warranted.

Risks revolve mostly around exploration success and funding for now. Please read the risks section.

We view Brunswick Exploration as a good speculative accumulate (high risk/high reward), suitable for a 5 year plus time frame, especially if positive on the outlook for lithium exploration and discovery in Canada.

As usual all comments are welcome.

For further details see: