VANCOUVER, BC, Aug. 30, 2021 /CNW/ - First Mining Gold Corp.
("First Mining" or the "Company") (TSX: FF)
(OTCQX: FFMGF) (FRANKFURT: FMG) is pleased to report that Auteco
Minerals Ltd ("Auteco") (ASX:AUT) has completed the Stage 2 earn-in
requirements with respect to the Pickle Crow Gold Project ("Pickle
Crow") located in northwestern Ontario,
Canada. As per the earn-in agreement with First Mining
(see news release dated March 12,
2020), Auteco has incurred $5
million in qualifying exploration expenditures, paid
$1 million in cash to First Mining
and has granted First Mining a 2% net smelter return ("NSR")
royalty on Pickle Crow of which 1% can be bought back by Auteco for
US$2.5 million.
Auteco, through one of its subsidiaries, has now increased its
ownership in PC Gold Inc. ("PC Gold"), the joint venture entity
that owns Pickle Crow, to a 70% interest (from 51%). At any
time following August 26, 2021,
Auteco has a right to acquire a further 10% interest in PC Gold by
paying First Mining $3 million in
cash to increase its total interest in PC Gold to 80% (the
"Buy-In"). First Mining currently owns 125,000,000 shares of
Auteco.
"First Mining is very excited about Auteco completing this stage
two milestone at Pickle Crow" stated Dan
Wilton, CEO of First Mining. "This milestone formally
provides First Mining with a royalty on Pickle Crow and an
additional $1 million in cash to
enhance our strong balance sheet. Our partnership with Auteco
continues to surface value for First Mining shareholders as
demonstrated by the success of Auteco's first phase 45,000 m drilling program, followed by the
commencement of a second phase, 50,000
m drilling program. First Mining looks forward to the
ongoing exploration success at Pickle Crow that our partners at
Auteco continue to deliver."
Auteco has a cash balance of A$21.8 million as of June 30, 2021 and is well-funded to execute the
50,000 m drill program planned for
the next 12 months. First Mining's interest in PC Gold
remains free carried until the earlier of the termination of
the earn-in agreement or a decision to mine by
Auteco.
About Pickle Crow
The Pickle Crow Gold Deposit is a high-grade, shear-hosted,
mesothermal Archean lode gold deposit. The deposit occurs primarily
within mafic volcanics and banded iron formation (BIF) units in the
Pickle Crow assemblage of the Pickle Lake Greenstone belt located
in the Uchi Lake Sub-province of the Superior Craton of the
Canadian Shield.
Mineralization is focused around steeply north-west dipping,
regional scale shear zones. Multiple mineralization styles have
been identified on the property, including Quartz-Gold-Tungsten
(+/-Tourmaline) Shear Veins which are the focus of the current
exploration, and banded iron formation mineralization (BIF-style),
which comprises structurally-controlled, sheeted vein arrays hosted
within the BIF.
Pickle Crow is one of Canada's
highest-grade historical gold mines. It operated from 1935 until
1966, during which time it reportedly produced almost 1.5 million
ounces of gold at an average grade of 16.14 g/t. The property
consists of ~190 km2 (19,000 hectares) of tenure
covering a major gold province. Auteco has increased its
landholding near the Project by staking an additional 130
km2 (13,000 ha) of land contiguous to Pickle Crow,
thereby increasing the combined property's land package to over 320
km2 (32,000 ha) (see news release dated February 18, 2020). First Mining acquired Pickle
Crow in November 2015 through its
acquisition of PC Gold Inc.
Auteco's development focus is on returning to first principles,
completing a new geological review and applying modern exploration
technologies in their advancement of the Project. Auteco has a
strong focus on discovering and developing new project scale,
high-grade, near surface gold resources.
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 ("NI 43-101"),
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 2021. 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)
timing for the exercise by Auteco of the Buy-In; (ii) commencing a
second phase 50,000 m drill program
at Pickle Crow and the timing to receive assays from such a drill
program; (iii) the success of any drill programs carried out by
Auteco at Pickle Crow. 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. Many factors, both known and
unknown, could cause actual results, performance or achievements to
be materially different from the results, performance or
achievements that are or may be expressed or implied by such
forward-looking statements and the parties have made assumptions
and estimates based on or related to many of these factors. Such
factors include, without limitation: regulatory approvals;
receipt of necessary financing by Auteco; the presence of
and continuity of metals at Pickle Crowt at estimated
grades; success in realizing proposed drilling programs;
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 or
Australian 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 and exploration drilling programs,
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.
Cautionary Note to United States
Investors
This news release has been prepared in accordance with the
requirements of the securities laws in effect in Canada, which differ from the requirements of
U.S. securities laws. Unless otherwise indicated, all resource and
reserve estimates included in this news release have been prepared
in accordance with NI 43-101 and the Canadian Institute of Mining,
Metallurgy, and Petroleum 2014 Definition Standards on Mineral
Resources and Mineral Reserves. NI 43-101 is a rule developed by
the Canadian Securities Administrators which establishes standards
for all public disclosure an issuer makes of scientific and
technical information concerning mineral projects. Canadian
standards, including NI 43-101, differ significantly from the
requirements of the SEC, and mineral resource and reserve
information contained herein may not be comparable to similar
information disclosed by U.S. companies. In particular, and without
limiting the generality of the foregoing, the term "resource" does
not equate to the term "reserves". Under U.S. standards,
mineralization may not be classified as a "reserve" unless the
determination has been made that the mineralization could be
economically and legally produced or extracted at the time the
reserve determination is made. The SEC's disclosure standards
normally do not permit the inclusion of information concerning
"measured mineral resources", "indicated mineral resources" or
"inferred mineral resources" or other descriptions of the amount of
mineralization in mineral deposits that do not constitute
"reserves" by U.S. standards in documents filed with the SEC.
Investors are cautioned not to assume that any part or all of
mineral deposits in these categories will ever be converted into
reserves. U.S. investors should also understand that "inferred
mineral resources" have a great amount of uncertainty as to their
existence and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
"inferred mineral resource" will ever be upgraded to a higher
category. Under Canadian rules, estimated "inferred mineral
resources" may not form the basis of feasibility or pre-feasibility
studies except in rare cases. Investors are cautioned not to assume
that all or any part of an "inferred mineral resource" exists or is
economically or legally mineable. Disclosure of "contained ounces"
in a resource is permitted disclosure under Canadian regulations;
however, the SEC normally only permits issuers to report
mineralization that does not constitute "reserves" by SEC standards
as in-place tonnage and grade without reference to unit measures.
The requirements of NI 43-101 for identification of "reserves" are
also not the same as those of the SEC, and reserves reported by the
Company in compliance with NI 43-101 may not qualify as "reserves"
under SEC standards. Accordingly, information concerning mineral
deposits set forth herein may not be comparable with information
made public by companies that report in accordance with U.S.
standards.
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SOURCE First Mining Gold Corp.