by Greg Klein | November 16, 2016
A well-financed company with an opportunistic approach to low valuations, First Mining Finance TSV:FF has begun another Ontario drill program. Announced November 15, the Pickle Crow gold project gets up to eight holes totalling 1,100 metres. The company began drilling its Springpole gold project last month.
The first such program on Pickle Crow since First Mining took over PC Gold a year ago, the rig will target the western extension of the project’s Core mine trend in hopes of finding high-grade, vein-type gold.
Pickle Crow produced 1.45 million ounces of gold and 168,757 ounces of silver between 1935 and 1966.
A 2011 inferred resource used a 2.25 g/t gold cutoff for an underground deposit and a 0.35 g/t cutoff for an open pit deposit:
- 6.52 million tonnes averaging 5.4 g/t for 1.14 million ounces gold
- 3.63 million tonnes averaging 1.1 g/t for 126,000 ounces
- 10.15 million tonnes averaging 3.9 g/t for 1.26 million ounces
The property lies about seven kilometres from a provincial highway, about 400 kilometres north of Thunder Bay.
“With drilling at our Springpole gold project well underway, and with drill programs planned for our other mineral properties in the coming months, this is an exciting time for First Mining as we take the initial steps toward enhancing the value of the assets we have accumulated over the past year and a half,” said president Patrick Donnelly.
Roughly 110 kilometres southwest, the company began Springpole’s 1,500-metre program last month for metallurgical tests. First Mining plans an updated PEA for H1 2017. Springpole comes with a 2012 resource that used a 0.4 g/t gold cutoff for an open pit deposit:
- indicated: 128.2 million tonnes averaging 1.07 g/t gold and 5.7 g/t silver for 4.41 million ounces gold and 23.8 million ounces silver
- inferred: 25.7 million tonnes averaging 0.83 g/t gold and 3.2 g/t silver for 690,000 ounces gold and 2.7 million ounces silver
First Mining’s portfolio holds 25 North American assets. Five projects in Ontario, Quebec and Newfoundland have resource estimates. The company closed a $27-million private placement in August, raising its treasury to $37.3 million at the time.