First Mining Gold Corp (TSE:FF) (OTCQX:FFMGF) 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).
The company acquired the 49,600 hectare (ha) Cameron project, which already boasts measured and indicated (M&I) resources of 274,000 ounces at 2.45 grams per ton (g/t) gold, back in 2016.
The East Cedartree claims add another 3,200 hectares and 212 claims of prospective mineral tenure in the middle of the project and, what's more, the claims already host an indicated resource of 93,000 ounces of gold at 1.36 g/t gold and inferred at 95,300 ounces of gold, also at 1.36 g/t.
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"The acquisition consolidates a strategic part of our district-scale Cameron Gold project and adds immediately accretive resources to the project," said Dan Wilton, CEO of First Mining in a statement.
"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."
Under the deal, First Mining will acquire the East Cedartree claims by paying C$3 million in cash and issuing 3 million of its shares to Metalore. The transaction is expected to close on December 9 this year.
Metalore acquired the property from Avalon Ventures in 2002 and spent C$2.8 million to acquire additional claims, selectively prospect and sample, conduct geophysical surveys and drill 95 holes throughout the property from up to 2010.
Significant gold intersections received included 46.8 metres (m) at 4.51 g/t gold in one hole, and 18.8 m at 5.44 g/t gold in another.
At the Cameron Gold deposit, first drilling was undertaken in 1960 and before First Mining acquired the project, more than 125,000m of diamond drilling was carried out by seven companies.
In 1987, underground development, including an exploration decline ramp extending 209m below surface to the 685 level, was completed to allow access for underground exploration and around 65,000 cubic metres of material was excavated and bulk sampling, diamond drilling and rock chip sampling were completed.
Despite this mining of material for testing, no production was ever undertaken.
First Mining is a Canadian gold developer focused on advancing its Springpole project in northwestern Ontario. Springpole is one of the largest undeveloped gold projects in Canada.
Shares nudged up 1.22% in Toronto to C$0.42 each.
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Contact the author at giles@proactiveinvestors.com