VANCOUVER, BC, Oct. 4, 2021 /CNW/ - First Mining Gold Corp.
("First Mining" or the "Company") (TSX: FF) (OTCQX: FFMGF)
(FRANKFURT: FMG) is pleased to announce that the Company has
entered into an earn-in agreement with Pelangio Exploration Inc.
("Pelangio") pursuant to which First Mining, through its
wholly-owned subsidiary Gold Canyon Resources Inc. ("Gold Canyon"),
may earn, over the course of two stages and over a period of six
years, up to an 80% interest in Pelangio's Birch Lake and Birch
Lake West properties (together, the "Birch Lake Properties").
The Birch Lake Properties include the High Grade Island prospect,
which is located to the northeast of First Mining's Springpole Gold
Project in northwestern Ontario. The Birch Lake Properties
cover approximately 3,700 hectares. With the addition of the
Birch Lake Properties, First Mining now controls close to 70,000
hectares in the Birch-Uchi Greenstone Belt.
"We are extremely excited to continue our consolidation efforts
in the region by bringing in the High Grade Island prospect, as it
represents one of the most prospective areas in the Birch-Uchi
Greenstone Belt," stated Dan Wilton,
CEO of First Mining. "Despite being explored since the 1980s
and with demonstrated high-grade drill intersections of up to 245
g/t gold, High Grade Island has been underexplored relative to
other high-grade camps in the belt and will be a priority target
for us as we embark on our first broader regional exploration
program next year. Through several land consolidation
transactions over the last few months, First Mining now holds some
of the most prospective areas of the Birch-Uchi Greenstone Belt,
and with future exploration success these new targets have the
potential to significantly increase the grade profile, resource
potential and economics at our Springpole Gold Project."
Pelangio Transaction
First Mining will have a two-stage option to earn up to an 80%
interest in the Birch Lake Properties. In the first stage,
First Mining, through its wholly-owned subsidiary Gold Canyon, can
earn up to an initial 51% interest in the Birch Lake Properties
over a four-year period by making cash payments to Pelangio
totaling $350,000 and issuing to
Pelangio a total of 1,300,000 shares of First Mining, and by
incurring at least $1,750,000 worth
of expenditures on the Birch Lake Properties during the four-year
period. Upon completing the first stage of the earn-in, First
Mining will have a second stage option for a period of two years to
acquire an additional 29% interest in the Birch Lake Properties by
paying $400,000 to Pelangio in cash
or First Mining shares, and by incurring an additional $1,750,000 worth of expenditures on the Birch
Lake Properties. Upon completion of the second earn-in stage,
First Mining (through its wholly-owned subsidiary, Gold Canyon) and
Pelangio will enter into a joint venture agreement with respect to
the Birch Lake Properties where First Mining will hold, through
Gold Canyon, an 80% interest in the Birch Lake Properties (if First
Mining notifies Pelangio at any time after exercising the first
earn-in that it will not complete the second earn-in stage, the
joint venture will be formed as of the date of such notice, and
First Mining will hold, through Gold Canyon, a 51% interest in the
Birch Lake Properties).
High Grade Island
High Grade Island is located on Pelangio's Birch Lake property
and lies approximately 2 km northeast of the Springpole Gold
Project and approximately 120 km northeast of Red Lake. Two
spatially separate zones of mineralization have been identified on
High Grade Island: the Main Central Zone located at the centre of
the island, which consists of greenstone-hosted, gold-quartz vein
type mineralization, and the Western Zone, located 700 m to the west in the northwestern part of the
island, which comprises iron formation-hosted, disseminated gold
mineralization. The two zones are related to a single
deformation zone interpreted to be up to 120
m in width and with a total potential strike length of over
1,100 m.
The Birch Lake property was explored by Dome Exploration Canada
(later Placer Dome) from 1986 to 1996, whose work consisted of
mapping, geophysical and geochemical surveys along with follow-up
diamond drilling, which was mainly focused on the Main Central
Zone. This zone is characterized by lenses of mineralization
within a wide altered and sheared zone, and the best gold values
appear to lie in northwest-plunging shoots. Drilling results
included large intercepts (4.2 m at
8.7 g/t Au in hole P255A-074) as well as several high-grade
intercepts associated with coarse visible gold (2.0 m @ 105 g/t Au, including 1.0 m at 209 g/t Au, in hole P255A-078).
The majority of the Placer Dome drilling tested the Main
Central Zone over a strike length of 350
m and to a depth of 200
m. Additional drilling was completed by Trade Winds
Ventures Inc. in 2004 and 2005 to evaluate the Main
Central Zone between 200 and 350 meters below surface.
Numerous gold intercepts were noted including 34.5 g/t Au over
9.85 m from 239.15 to 249.0 m (hole TWBL-096) and 244.7 g/t Au over
2.45 m from 357.85 to 360.30 m (hole TWBL-097).
The Western Zone is located in the same deformation zone as the
Main Central Zone but the mineralization is associated with an iron
formation host. There has been limited drilling in this zone
to date with the best intercept from drill hole 028, which returned
5 m at 1.6 g/t Au from a near surface
intercept.
High Grade Island is accessible from First Mining's Springpole
Gold Project by boat during the summer months and by snowmobile or
ice road during the winter months.
Drill highlights from the historical drill programs are provided
in the table below:
Hole
ID
|
From
(m)
|
To
(m)
|
Length
(m)
|
Au
g/t
|
Zone
|
Collar
UTM
East
|
Collar
UTM
North
|
Final
Depth
(m)
|
Azimuth
⁰
|
Dip
⁰
|
P255A-025
|
34.0
|
39.0
|
5.0
|
1.60
|
Western
|
552982
|
5697981
|
98.00
|
214
|
-70
|
P255A-053
|
136.6
|
138.5
|
1.9
|
63.94
|
Main
Central
|
553808
|
5697608
|
158.00
|
250
|
-45
|
P255A-064
|
96.1
|
100.5
|
4.4
|
7.08
|
Main
Central
|
553700
|
5697629
|
113.00
|
250
|
-45
|
P255A-074
|
171.5
|
175.7
|
4.2
|
8.66
|
Main
Central
|
553923
|
5697543
|
227.00
|
250
|
-45
|
P255A-078
|
174.5
|
176.5
|
2.0
|
105.30
|
Main
Central
|
553921
|
5697486
|
215.00
|
250
|
-45
|
P255A-090
|
208.0
|
210.0
|
2.0
|
52.08
|
Main
Central
|
553870
|
5697570
|
286.00
|
215
|
-60
|
P255A-091
|
235.7
|
237.0
|
1.4
|
41.59
|
Main
Central
|
553868
|
5697572
|
301.45
|
215
|
-74
|
TWBL-096
|
239.2
|
242.1
|
3.0
|
113.94
|
Main
Central
|
553868
|
5697572
|
291.39
|
217
|
-67
|
239.2
|
249.0
|
9.9
|
34.54
|
TWBL-097
|
306.4
|
308.8
|
2.4
|
21.21
|
Main
Central
|
553868
|
5697572
|
398.20
|
220
|
-81
|
357.9
|
360.3
|
2.5
|
244.73
|
TWBL-098
|
206.0
|
209.4
|
3.4
|
6.15
|
Main
Central
|
553868
|
5697572
|
299.31
|
218
|
-75
|
TWBL-100
|
285.0
|
288.0
|
3.0
|
6.69
|
Main
Central
|
553868
|
5697572
|
311.00
|
311
|
-77
|
|
Notes:
|
|
1. Collar
coordinates in UTM NAD83 z15
|
|
2. Placer Dome
drill highlights ('P225A' series holes) from the technical report
titled 'Geological Modeling and Exploration for the Birch Lake Gold
Property', prepared for Mosquito Consolidated Gold Mines Ltd. by M.
Ball P.Geo, dated December 2002
|
|
3. Trade Winds
drill highlights ('TWBL' series holes) from the NI 43-101 technical
report titled 'Report on Exploration on the Birch Lake Property,
Red Lake Mining Division, Province of Ontario', prepared for Trade
Winds Ventures Inc by R. Wells P.Geo, dated February 20,
2005
|
Qualified Person
Hazel
Mullin, P.Geo., Director, Data Management and Technical
Services of First Mining, is a "Qualified Person" for the purposes
of National Instrument 43-101 Standards of Disclosure for
Mineral Projects, and she has reviewed and approved the
scientific and technical disclosure contained in this news
release.
About First Mining Gold Corp.
First Mining is a
Canadian gold developer focused on the development and permitting
of the Springpole Gold Project in northwestern
Ontario. Springpole is one of the largest undeveloped
gold projects in Canada. The
results of a positive Pre-Feasibility Study for the Springpole Gold
Project were announced by First Mining in January 2021, and permitting activities are
on-going with submission of an Environmental Impact Statement
("EIS") for the project targeted for 2022. The Company also
holds a large equity position in Treasury Metals Inc. who
are advancing the Goliath Gold Complex toward
construction. First Mining's portfolio of gold projects in
eastern Canada also includes the
Pickle Crow (being advanced in partnership with Auteco
Minerals Ltd.), Hope Brook
(being advanced in partnership with Big Ridge Gold Corp.),
Cameron, Duparquet, Duquesne, and Pitt gold projects.
First Mining was established in 2015 by Mr. Keith Neumeyer, founding President and CEO of
First Majestic Silver Corp.
ON BEHALF OF FIRST MINING GOLD CORP.
Daniel W. Wilton
Chief Executive Officer and Director
Cautionary Note Regarding Forward-Looking
Statements
This news release includes certain
"forward-looking information" and "forward-looking statements"
(collectively "forward-looking statements") within the meaning of
applicable Canadian and United
States securities legislation including the United States
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are made as of the date of this news
release. Forward-looking statements are frequently, but not always,
identified by words such as "expects", "anticipates", "believes",
"plans", "projects", "intends", "estimates", "envisages",
"potential", "possible", "strategy", "goals", "opportunities",
"objectives", "targeted", "advancing", "proving" or variations
thereof or stating that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved,
or the negative of any of these terms and similar
expressions.
Forward-looking statements in this news release relate to
future events or future performance and reflect current estimates,
predictions, expectations or beliefs regarding future events and
include, but are not limited to, statements with respect to: (i)
First Mining undertaking a regional exploration program at its
Springpole Gold Project in 2022 and the High Grade Island prospect
being a priority target for the Company during such program; (ii)
the potential for future exploration success at First Mining's
newly acquired mineral property interests in the Birch-Uchi
Greenstone Belt to significantly increase the grade profile,
resource potential and economics at the Springpole Gold Project;
(iii) completion and timing of all earn-in stages under the earn-in
agreement with Pelangio; (iv) completion and timing of all
exploration expenditures required under the earn-in agreement with
Pelangio; (v) timing for the formation of a joint venture between
First Mining's wholly-owned subsidiary, Gold Canyon, and Pelangio
with respect to the Birch Lake Properties; (vi) the advancement and
merits of the Goliath Gold Complex; and (vii) the submission of the
EIS for the Springpole Gold Project. All forward-looking
statements are based on First Mining's or its consultants' current
beliefs as well as various assumptions made by them and information
currently available to them. There can be no assurance that
such statements will prove to be accurate, and actual results and
future events could differ materially from those anticipated in
such statements. Forward-looking statements reflect the beliefs,
opinions and projections on the date the statements are made and
are based upon a number of assumptions and estimates that, while
considered reasonable by the respective parties, are inherently
subject to significant business, economic, competitive, political
and social uncertainties and contingencies. Such factors
include, without limitation the Company's business, operations and
financial condition potentially being materially adversely affected
by the outbreak of epidemics, pandemics or other health crises,
such as COVID-19, and by reactions by government and private actors
to such outbreaks; risks to employee health and safety as a result
of the outbreak of epidemics, pandemics or other health crises,
such as COVID-19, that may result in a slowdown or temporary
suspension of operations at some or all of the Company's mineral
properties as well as its head office; fluctuations in the
spot and forward price of gold, silver, base metals or certain
other commodities; fluctuations in the currency markets (such as
the Canadian dollar versus the U.S. dollar); changes in national
and local government, legislation, taxation, controls, regulations
and political or economic developments; risks and hazards
associated with the business of mineral exploration, development
and mining (including environmental hazards, industrial accidents,
unusual or unexpected formations, pressures, cave-ins and
flooding); the presence of laws and regulations that may impose
restrictions on mining; employee relations; relationships with and
claims by local communities, indigenous populations and other
stakeholders; availability and increasing costs associated with
mining inputs and labour; the speculative nature of mineral
exploration and development; title to properties; and the
additional risks described in the Company's Annual Information Form
for the year ended December 31, 2020
filed with the Canadian securities regulatory authorities under the
Company's SEDAR profile at www.sedar.com, and in the Company's
Annual Report on Form 40-F filed with the SEC on EDGAR.
First Mining cautions that the foregoing list of factors that
may affect future results is not exhaustive. When relying on
our forward-looking statements to make decisions with respect to
First Mining, investors and others should carefully consider the
foregoing factors and other uncertainties and potential events.
First Mining does not undertake to update any forward-looking
statement, whether written or oral, that may be made from time to
time by the Company or on our behalf, except as required by
law.
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SOURCE First Mining Gold Corp.