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First Mining Gold Corp
Symbol FF
Shares Issued 698,133,458
Close 2021-10-01 C$ 0.295
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First Mining to acquire 80% of Pelangio's Birch assets

2021-10-04 07:54 ET - News Release

Also News Release (C-PX) Pelangio Exploration Inc (2)

Mr. Daniel Wilton of First Mining reports


First Mining Gold Corp. has entered into an earn-in agreement with Pelangio Exploration Inc. pursuant to which First Mining, through its wholly owned subsidiary, Gold Canyon Resources Inc., may earn, over the course of two stages and over a period of six years, up to an 80-per-cent interest in Pelangio's Birch Lake and Birch Lake West properties. The Birch Lake properties include the High Grade Island prospect, which is located to the northeast of First Mining's Springpole gold project in Northwestern Ontario. The Birch Lake properties cover approximately 3,700 hectares. With the addition of the Birch Lake properties, First Mining now controls close to 70,000 hectares in the Birch-Uchi greenstone belt.

"We are extremely excited to continue our consolidation efforts in the region by bringing in the High Grade Island prospect, as it represents one of the most prospective areas in the Birch-Uchi greenstone belt," stated Dan Wilton, chief executive officer of First Mining. "Despite being explored since the 1980s and with demonstrated high-grade drill intersections of up to 245 g/t gold, High Grade Island has been underexplored relative to other high-grade camps in the belt and will be a priority target for us as we embark on our first broader regional exploration program next year. Through several land consolidation transactions over the last few months, First Mining now holds some of the most prospective areas of the Birch-Uchi greenstone belt, and with future exploration success these new targets have the potential to significantly increase the grade profile, resource potential and economics at our Springpole gold project."

Pelangio transaction

First Mining will have a two-stage option to earn up to an 80-per-cent interest in the Birch Lake properties. In the first stage, First Mining, through its wholly owned subsidiary, Gold Canyon, can earn up to an initial 51-per-cent interest in the Birch Lake properties over a four-year period by making cash payments to Pelangio totalling $350,000 and issuing to Pelangio a total of 1.3 million shares of First Mining, and by incurring at least $1.75-million worth of expenditures on the Birch Lake properties during the four-year period. Upon completing the first stage of the earn-in, First Mining will have a second stage option for a period of two years to acquire an additional 29-per-cent interest in the Birch Lake properties by paying $400,000 to Pelangio in cash or First Mining shares, and by incurring an additional $1.75-million worth of expenditures on the Birch Lake properties. Upon completion of the second earn-in stage, First Mining (through its wholly owned subsidiary, Gold Canyon) and Pelangio will enter into a joint venture agreement with respect to the Birch Lake properties where First Mining will hold, through Gold Canyon, an 80-per-cent interest in the Birch Lake properties (if First Mining notifies Pelangio at any time after exercising the first earn-in that it will not complete the second earn-in stage, the joint venture will be formed as of the date of such notice, and First Mining will hold, through Gold Canyon, a 51-per-cent interest in the Birch Lake properties).

High Grade Island

High Grade Island is located on Pelangio's Birch Lake property and lies approximately two kilometres northeast of the Springpole gold project and approximately 120 km northeast of Red Lake. Two spatially separate zones of mineralization have been identified on High Grade Island: the Main Central zone located at the centre of the island, which consists of greenstone-hosted, gold-quartz vein-type mineralization, and the Western zone, located 700 m to the west in the northwestern part of the island, which comprises iron-formation-hosted disseminated gold mineralization. The two zones are related to a single deformation zone interpreted to be up to 120 metres in width and with a total potential strike length of over 1,100 m.

The Birch Lake property was explored by Dome Exploration Canada (later Placer Dome) from 1986 to 1996, whose work consisted of mapping, geophysical and geochemical surveys along with follow-up diamond drilling, which was mainly focused on the Main Central zone. This zone is characterized by lenses of mineralization within a wide altered and sheared zone, and the best gold values appear to lie in northwest-plunging shoots. Drilling results included large intercepts (4.2 m at 8.7 grams per tonne gold in hole P255A-074) as well as several high-grade intercepts associated with coarse visible gold (2.0 m at 105 g/t Au, including 1.0 m at 209 g/t Au, in hole P255A-078). The majority of the Placer Dome drilling tested the Main Central zone over a strike length of 350 m and to a depth of 200 m. Additional drilling was completed by Trade Winds Ventures Inc. in 2004 and 2005 to evaluate the Main Central zone between 200 and 350 metres below surface. Numerous gold intercepts were noted including 34.5 g/t Au over 9.85 m from 239.15 to 249.0 m (hole TWBL-096) and 244.7 g/t Au over 2.45 m from 357.85 to 360.30 m (hole TWBL-097).

The Western zone is located in the same deformation zone as the Main Central zone but the mineralization is associated with an iron formation host. There has been limited drilling in this zone to date with the best intercept from drill hole 028, which returned five m at 1.6 g/t Au from a near-surface intercept.

High Grade Island is accessible from First Mining's Springpole gold project by boat during the summer months and by snowmobile or ice road during the winter months.

Hole ID              From            To        Length            Au
                      (m)           (m)           (m)         (g/t)

P255A-025            34.0          39.0           5.0          1.60
P255A-053           136.6         138.5           1.9         63.94
P255A-064            96.1         100.5           4.4          7.08
P255A-074           171.5         175.7           4.2          8.66
P255A-078           174.5         176.5           2.0        105.30
P255A-090           208.0         210.0           2.0         52.08
P255A-091           235.7         237.0           1.4         41.59
TWBL-096            239.2         242.1           3.0        113.94
                    239.2         249.0           9.9         34.54
TWBL-097            306.4         308.8           2.4         21.21
                    357.9         360.3           2.5        244.73
TWBL-098            206.0         209.4           3.4          6.15
TWBL-100            285.0         288.0           3.0          6.69

Qualified person

Hazel Mullin, PGeo, 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, 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 prefeasibility study for the Springpole gold project were announced by First Mining in January, 2021, and permitting activities are continuing with submission of an environmental impact statement (EIS) for the project targeted for 2022. The company also holds a large equity position in Treasury Metals Inc., which is advancing the Goliath gold complex toward construction.

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