First Mining's Joint Venture Partner Completes Stage 1 Earn-In for the Pickle Crow Gold Project, Ontario, Canada
On June 9, 2021, First Mining Gold Corp. (TSX: FF) announced that Auteco Minerals Ltd (ASX: AUT) has completed Stage 1 of its earn-in for the Pickle Crow Gold Project in Ontario, Canada, acquiring a 51% stake in PC Gold Inc. by issuing 100 million shares to First Mining, valued at approximately $10.5 million. Auteco is required to invest an additional $5 million and pay $1 million to complete Stage 2, which could increase its stake to 80%. The project is seeing active drilling, demonstrating strong progress toward resource definition and development.
- Auteco has completed Stage 1 earn-in, acquiring a 51% interest in PC Gold.
- First Mining now holds 125 million shares of Auteco, valued at approximately $10.5 million.
- Ongoing drilling program shows robust progress with identification of high-grade gold veins.
- Dependence on Auteco fulfilling additional financial requirements ($5 million for exploration and $1 million payment) to proceed with Stage 2.
Auteco Minerals issues 100,000,000 Auteco shares to First Mining
VANCOUVER, BC, June 9, 2021 /PRNewswire/ - 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 first stage of its earn-in with respect to the Pickle Crow Gold Project located in northwestern Ontario, Canada ("Pickle Crow"). In connection with the completion of Stage 1 of the earn-in, Auteco has issued 100,000,000 shares of Auteco to First Mining. As a result of completing Stage 1 of the earn-in, Auteco (through one of its subsidiaries) now owns a
"First Mining is delighted by the excellent progress Auteco has made on Pickle Crow in such a short period of time." stated Dan Wilton, CEO of First Mining. "With this latest issuance of shares, First Mining now owns 125 million shares of Auteco with an approximate fair value of
"We have completed the Stage 1 earn-in requirements for a
Under the terms of the earn-in agreement that First Mining signed with Auteco with respect to Pickle Crow, in order to complete the Stage 2 Earn-In, Auteco must fulfil the following requirements within the next two years: (i) incur a further
The current 45,000-metre drill program remains on track for completion by mid-year, with up to five rigs active on site at Pickle Crow during the last quarter. To date, Auteco has completed 120 diamond drill holes for 31,160 metres, focusing exclusively on near mine extensions and discovery of mineralized structures outside of the resource area. In the short term, drilling has transitioned toward infill drilling aiming to provide sufficient data density on newly identified or extended structures to enable the calculation of an updated mineral resource estimate for Pickle Crow.
Auteco is well funded with cash reserves of A
Drilling completed in the first quarter of 2021 has identified several new, high-grade gold veins and the extensions of previously known structures proximal to Shafts 1 & 3. Mineralization remains open in all directions on targeted structures, and Auteco's work will now focus on defining high-grade gold shoots within the mineralized envelopes. Drill highlights and assay results will be reported in a future news release.
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 was 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 recently increased its landholding near the Project by acquiring an additional 176 km2 (176,000 ha) of land contiguous to Pickle Crow, which, together with the 130 km2 acquired by Auteco in 2020 (see news release dated February 17, 2021) increases the combined property's land package to over 496 km2 (496,000 ha) (see news release dated January 28, 2021). 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 Pickle Crow. Auteco has a strong focus on discovering and developing new project scale, high-grade, near surface gold resources.
About Auteco
Auteco Minerals Limited is a mineral exploration company currently focused on advancing high-grade gold resources at the Pickle Crow Gold Project in the world class Uchi Sub-province of Ontario, Canada. The Auteco Board of Directors and Technical Management team has a proven track record of discovering gold and creating wealth for shareholders and all stakeholders in recent years.
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 for the project targeted for 2021. The Company also has a number of active partnerships including the Goliath Gold Complex (Treasury Metals); Pickle Crow (Auteco Minerals); and Hope Brook ( Big Ridge Gold), in addition to wholly owned properties, Cameron, Duparquet, Duquesne and Pitt.
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", "objectives", 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 Auteco to incur the Additional Expenditures on the Pickle Crow Project; (ii) timing for Auteco to pay
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.
FAQ
What is the significance of Auteco issuing 100 million shares to First Mining?
What are the financial commitments for Auteco to complete Stage 2 of the earn-in?
How much cash does Auteco currently have to support the Pickle Crow Project?