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viewFirst Mining Gold Corp.

First Mining Gold unlocking value with strategic transactions, while advancing one of the largest open pit deposits in Canada

Snapshot

The company has accumulated a large portfolio of assets covering 300,000 hectares in geopolitically safe regions of North America, most of them in Ontario, Canada

First Majestic Silver Corp. -

Quick facts: First Mining Gold Corp.

Price: 0.41 CAD

TSX:FF
Market: TSX
Market Cap: $283.96 m
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  • Springpole project hosts 4.67 million indicated ounces of gold
  • Focused on a portfolio of assets in quality jurisdictions
  • Experienced team

What First Mining Gold Corp does: 

First Mining Gold Corp (TSE:FF) (OTCQX:FFMGF) was created by chairman Keith Neumeyer, who founded mining majors First Majestic Silver Corp (TSE:FR) and co-founded copper-focused First Quantum Minerals Ltd (TSE:FM). First Mining Gold went public in April, 2015.

The company has accumulated a large portfolio of assets covering 300,000 hectares in geopolitically safe regions of North America, most of them in Ontario, Canada.

Its 13 projects range from grassroots exploration up to the Preliminary Economic Assessment (PEA) stage. The company already enjoys a large resource-base on which it can expand.

The company's main focus is the development and permitting of its Springpole gold project, a 41,943-hectare project near the prolific Red Lake area in Ontario, which is among the largest undeveloped open pit gold deposits in Canada.

In August this year, it closed a deal with gold junior Treasury Metals Inc (TSE:TML) (OTCQX:TSRMF) to merge the Goldlund (a First Mining Gold project) and Goliath properties in Ontario. First Mining became the largest shareholder in Treasury Metals, which will operate the project going forward.

Its 'Tier One' assets are the Cameron gold project and Pickle Crow gold asset, both in Ontario. Pickle Crow, where the group is partnered with Auteco Minerals,  is one of Canada's highest-grade historical gold mines. It operated from 1935 until 1966, reportedly producing almost 1.5 million ounces of gold at an average grade of 16.1 grams per ton (g/t).

Under the terms of a March 2020 deal, Auteco can earn a full 80% interest in Pickle Crow by spending a total of C$10 million on exploration over five years, making cash payments to First Mining totaling C$4.1 million, and issuing 125 million shares.

First Mining also has the Hope Brook gold project in Newfoundland, which comprises seven claims that cover 26,650 hectares.

The company has a market cap of around C$284 million, no debt and about C$32.5 million of cash on hand. Its shares are 79% owned by retail investors, institutions have 16%, management has 2.8% and First Majestic Silver holds 2.2%.

First Mining says it is undervalued relative to its sector peers, trading at around US$12 per ounce of gold, while the  gold developer's average is US$56 per ounce.

How is it doing:

In September, this year, the company said it was making good progress on the prefeasibility study (PFS) for the Springpole gold project in Ontario, which is on track to be delivered in the first quarter of 2021.

It has carried out a number of so-called 'trade-off' studies to optimize the project, reduce the overall footprint, mitigate environmental risks, and improve the economics. Mine plan optimization has also been completed and is currently under review, while the metallurgical test program is also nearly complete, the company had noted.

The group also said it had made significant progress on collecting the data it needs to complete the environmental assessment statement.

The same month, First Mining hailed initial results from its partner Auteco Minerals' (ASX:AUT) ongoing drilling at the Pickle Crow project, which "continues to enlarge the areas of known mineralization and highlight the project's resource expansion potential".

Auteco began its maiden drilling program at the asset in May this year and so far 19 holes for 4,464 metres (m) have been drilled, with assays returned for nine holes and partial assays for a further six. Highlight results included 99.35 grams per tonne (g/t) gold over 0.6 metres in one hole, which included an intersection of 181 g/t of the yellow metal over 0.3 metres.

Material news also came on December 3 this year, when the company added more resource ounces and consolidated its ground at the 49,600 hectare (ha) Cameron gold project in northwest Ontario, by purchasing the East Cedartree claims from Metalore Resources (CVE:MET).

The East Cedartree claims add another 3,200 hectares and 212 claims of prospective mineral tenure in the middle of the project and, in addition, the claims host an indicated resource of 93,000 ounces of gold at 1.4 g/t gold and inferred at 95,300 ounces of gold, also at 1.4 g/t. These will add to the measured and indicated (M&I) resource of 274,000 ounces at 2.5 grams per ton (g/t) gold, back in 2016.

First Mining is paying C$3 million in cash and issuing 3 million of its shares to Metalore and the deal is expected to close on December 9 this year.

The company said it was currently undertaking prioritization and review of the numerous exploration targets at Cameron while it advances discussions with local Indigenous communities, and hopes to commence a drill program in 2021.

Inflection points:

  • Springpole PFS completion
  • Start of drilling at Cameron project
  • Goliath-Goldlund development
  • More Pickle Crow drilling news

What the boss says:

Following the Cameron project news, First Mining Gold's CEO Dan Wilton spoke to Proactive and gave more details about the latest acquisition.

"We've looked at it pretty closely over the years (East Cedartree) and in fact where the resource sits is right beside our West Cedartree property where we have a couple of resources at Dubenski and Dogpaw where there have been historical workings going back tens of years and they each have small established resources on them already, but no-one's ever really looked at this area as a package so that's where I think the real opportunity is...," he said.

Contact the author at [email protected]

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First Mining Gold to acquire East Cedartree claims to bolster its Cameron...

First Mining Gold Corp (TSE:FF) (OTCQX:FFMGF) CEO Dan Wilton tells Proactive the group has added more resource ounces and consolidated its ground at the Cameron Gold project in northwest Ontario, by purchasing the East Cedartree claims from Metalore Resources (CVE:MET). Wilton says the...

1 day, 6 hours ago

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