Cameron land consolidation December 3, 2020 – Vancouver, Canada – First Mining Gold Corp. (“First Mining” or the “Company”) (TSX: FF) (OTCQX: FFMGF) (FRANKFURT: FMG) is pleased to announce that it has entered into an agreement with Metalore Resources Limited (“Metalore”) (TSX.V: MET) pursuant to which First Mining will purchase the East Cedartree claims from Metalore, filling in a strategic piece in First Mining landholdings near the Cameron Gold Project (“Cameron” or the “Project”) located 80 km southeast of the city of Kenora in northwestern Ontario.
Under the transaction, First Mining will acquire the East Cedartree claims by paying $3 million in cash to Metalore and issuing 3 million First Mining shares to Metalore. The transaction is expected to close on December 9, 2020. The East Cedartree claims contain an existing mineral resource estimate that was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and encompass a highly favourable geological setting for new gold discoveries in close proximity to the existing known deposits at the Company’s Cameron and West Cedartree properties.
Highlights:
- The additional mineral claims are located between two non-contiguous claim blocks - the Cameron Property, which includes the “Cameron Gold Deposit” that hosts the current NI 43-101 Mineral Resource and the West Cedartree Property, which includes the Dubenski and Dogpaw deposits - therefore substantially consolidate First Mining’s Cameron Gold Project into a single contiguous block
- The East Cedartree claims add a strategic 3,200 hectares of prospective mineral tenure in the middle of the Cameron land package, adding to the 49,600 hectares that First Mining already holds in the district
- The East Cedartree claims host an Indicated Mineral Resource of 2.1 Mt at 1.36 g/t Au containing 93,000 ounces of gold and an Inferred Mineral Resource of 2.2 Mt at 1.36 g/t Au containing 95,300 ounces of gold (at a cut-off of 0.3 g/t gold) (based on the Technical Report titled “Gold Exploration Potential & Preliminary Resource Estimate, East Cedartree Lake Mining Claims, Kenora Mining District, Northwestern Ontario”, dated effective March 12, 2012, which is available at www.sedar.com under Metalore’s SEDAR profile)
- The Cameron Gold Project benefits from excellent infrastructure, including year-round road access to the property, and the main resource areas sit within 200 m of existing forestry roads
“We are very excited with the acquisition of the East Cedartree claims” stated Dan Wilton, CEO of First Mining. “The acquisition consolidates a strategic part of our district-scale Cameron Gold Project and adds immediately accretive resources to the project. We are currently undertaking prioritization and review of the numerous exploration targets at Cameron while we advance discussions with our local Indigenous communities, and hope to commence a drill program in 2021.”
About the East Cedartree Property
The East Cedartree property is located approximately 80 km southeast of the city of Kenora, and 15 km east of the village of Sioux Narrows in northwestern Ontario. The property consists of 212 mining claims, which cover over 3,200 hectares, and hosts a number of gold showings, shear zones, and sulphide rich-areas, many of which have never been drilled.
In 2002, Metalore acquired the property from Avalon Ventures Ltd. and spent $2.8 M to acquire additional claims, selectively prospect and sample, conduct geophysical surveys (magnetic survey, VLF, electro-magnetic and IP) and drill 95 holes (12,947 m) throughout the property from 2002 to 2010. Significant gold intersections include 46.8 m at 4.51 g/t Au (drill hole MC-02-05), 18.8 m at 5.44 g/t Au (drill hole MC-02-13) and 50.9 m at 2.97 g/t Au (drill hole MC-02-17).
This exploration work resulted in the publication of a mineral resource estimate in 2012 that was prepared in accordance with NI 43-101. A total of seven sub-parallel gold mineralized corridors of higher-grade gold mineralization along with a main zone were defined within a larger envelope of lower grade gold mineralization that could potentially be incorporated into a “bulk mining” structure. A cut-off of 0.3 g/t Au was used to define a lower grade envelope and cut-offs of 1.0 g/t and 3.0 g/t Au were used to define higher grade sections. At a cut-off of 0.3 g/t Au, an Indicated Resource was calculated of 2.1 million tonnes at 1.36 g/t Au totalling 92,950 ounces of gold, plus an Inferred Resource of 2.2 million tonnes at 1.36 g/t Au for a total of 95,280 ounces of gold.
*Resource figures based on the technical report titled “Gold Exploration Potential & Preliminary Resource Estimate, East Cedartree Lake Mining Claims, Kenora Mining District, Northwestern Ontario”, dated effective March 12, 2012, which is available at www.sedar.com under Metalore’s SEDAR profile.
Notes:
- Results are presented undiluted and in-situ; some blocks may be locked in pillars.
- A minimum 1.5 m true width was applied.
- Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is currently insufficient exploration to define these Inferred mineral resources as Indicated or Measured mineral resources and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.