First Mining Gold advancing one of the largest gold projects in Canada
First Mining adds value with new Pelangio and ALX deals
First Mining Gold Corp. announced in early October that the company has entered into an earn-in agreement with Pelangio Exploration Inc. where First Mining, through its wholly owned subsidiary Gold Canyon Resources Inc., 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.
The Birch Lake Properties include the High-Grade Island prospect, which is located 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,” said 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.”
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).
In September, the company announced they entered into an earn-in agreement with ALX Resources Corp. in 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 five years, up to a 100% interest in ALX’s Vixen North, Vixen South and Vixen West properties (the “Vixen Properties”) located near First Mining’s Springpole Gold Project in northwestern Ontario. The Vixen Properties are comprised of 521 single cell mining claims covering approximately 10,600 hectares.
In addition to entering into the earn-in agreement with ALX to earn into the Vixen Properties, First Mining acquired additional claims covering approximately 6,000 hectares within the Birch-Uchi Greenstone Belt, including the acquisition of the past-producing, high-grade Sol d’Or mine located adjacent to the Swain Lake Property, on which First Mining has a three-year option agreement with Whitefish Exploration Inc.
With the addition of the Vixen Properties and the New Claims, First Mining now controls over 66,000 hectares in the Birch-Uchi Greenstone Belt and is the largest single claim holder in the region.
“First Mining’s recent land tenure consolidation in the Birch-Uchi Greenstone Belt is another major development for our Company and the region,” said Dan Wilton. “Since the beginning of the year, First Mining has significantly increased its land package around Springpole and believe the Birch-Uchi is the one of the most under-explored and highly prospective gold belts in Canada, with district-scale potential.
The region hosts several past-producing mines including our newly acquired Sol d’Or mine where there has been demonstrated historical, high-grade exploration potential. First Mining intends to undertake a comprehensive regional exploration program over the next twelve months for the first time since our acquisition of Springpole in 2015 and will be incorporating these newly acquired and optioned claims into the program. First Mining remains focused on advancing and permitting our flagship Springpole Gold Project which hosts the largest known gold deposit in the district and will be a critical strategic asset if more gold resources are found in the region.”
In the interim, 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 ongoing leading to the submission of an Environmental Impact Statement.
The company is the largest shareholder of Treasury Metals who are advancing the Goliath Gold Complex in Ontario. First Mining also has active partnerships with operators advancing other Canadian projects including the Pickle Crow Gold Project (Auteco Minerals) and Hope Brook Gold Project (Big Ridge Gold). In addition, First Mining owns a growing strategic royalty portfolio along with other wholly owned properties: Cameron, Duparquet, Duquesne and Pitt.
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