First Mining Gold Corp. (TSX: FF) has confirmed that Big Ridge Gold Corp. has completed the Stage 1 earn-in requirements with respect to the Hope Brook Gold Project in Newfoundland.
As required under the Agreement, Big Ridge has (i) incurred $10 million in qualifying exploration expenditures at Hope Brook, (ii) issued 15,000,000 common shares of Big Ridge to First Mining, and (iii) granted to First Mining a 1.5% net smelter returns (NSR) royalty on Hope Brook, of which 0.5% can be bought back by Big Ridge for $2 million.
With the Stage 1 Earn-In now complete, Big Ridge has earned a 51% ownership interest in Hope Brook and has until June 8, 2026 to acquire an additional 29% direct interest in Hope Brook by: (i) incurring a further $10 million in exploration expenditures; and (ii) issuing additional Big Ridge Shares to First Mining in the amount that is the lesser of (a) 10,000,000 Big Ridge Shares; or (ii) the number of Big Ridge Shares which, when combined with the number of Big Ridge Shares owned by First Mining at the time of issuance, would result in First Mining owning 19.9% of the issued and outstanding Big Ridge Shares outstanding.
Upon completion of the Stage 2 Earn-In, First Mining will hold a 20% interest in Hope Brook which will be free carried until the completion of a Feasibility Study by Big Ridge.
“First Mining is delighted that Big Ridge has completed its $10 million worth of Stage 1 expenditures on the Hope Brook project in such an expeditious timeframe”, stated Dan Wilton, CEO of First Mining.
“Our partnership with Big Ridge has surfaced significant value for First Mining’s shareholders and continues to highlight the potential value for the Hope Brook deposit. Our team remains encouraged and eagerly awaits results from Big Ridge’s ongoing Phase 1 drill programme.”
To date, Big Ridge has completed 61 diamond drill holes and released results from 33 of those holes. The Phase 1 drill program at Hope Brook has focused on connecting the Main Zone and the 240 Zone near surface and at depth, respectively, and testing the down dip extensions to both the Main and 240 Zones. Results from the Phase 1 drill program will be included in the updated mineral resource estimate that Big Ridge expects to issue in H1 2023.
About Hope Brook
The Hope Brook Gold Project is an advanced stage, high-grade gold project that produced 752,162 ounces of gold from 1987 – 1997. Hope Brook hosts an indicated gold resource totalling 5,500,000 tonnes grading 4.77 grams per tonne gold for 844,000 ounces and inferred resources totalling 836,000 tonnes grading 4.11 grams per tonne gold for 110,000 ounces based on a 3.0 gram per tonne cut-off grade and a long-term gold price of US$1,200.
Hope Brook is located 85 kilometres east of Port aux Basques, Newfoundland. The project has well maintained infrastructure on site, including an operational 28-person camp, an 1,100-meter airstrip, ice-free docking facility and importantly, connection to the provincial electrical power grid via an on-site substation.
Significant exploration potential remains on the ~26,000-hectare concession providing a great opportunity to expand the mine area as well as surface showings throughout the concessions.
For further information please visit: https://firstmininggold.com/
