Duparquet Gold Mines, a subsidiary of First Mining Gold (TSX: FF) (OTCQX: FFMGF), entered into an agreement with IAMGOLD Corp (TSX: IMG) to pick up its Porcupine East property.
The Porcupine East Property is located between First Mining’s Duparquet Gold Project and Pitt and Duquesne Gold Projects. The project adds 1,868 hectares for a land package of over 5,800 hectares in Quebec, as well as an extra 7 kilometres of strategic ground along the Destor-Porcupine Fault zone. This increases First Mining’s total exposure to 19 kilometers, including multiple secondary mineralized structures. The new property includes three past producing gold mines, one deposit and 17 mineral showings.
Finally, a future payment of $1 million in cash or shares to be paid 12 months after declaration of commercial production, as long as the major infrastructure related has been constructed on the Porcupine East property.
“These highly prospective claims are located in between our Duparquet, Pitt and Duquesne gold projects, and will provide First Mining with a contiguous property package covering 19 kilometers of favourable stratigraphy in Quebec, in the heart of the Abitibi Greenstone Belt,” said Dan Wilton, CEO of First Mining.
The deal includes 500,000 First Mining common shares when the deal closes.
Also, IAMGOLD will get a 1.5 per cent net smelter return royalty from the project. Additionally, IAMGOLD will get a $500,000 in cash or shares when production reaches 350,000 kilo ounces.
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First Mining Gold acquiring property with strong historical package
The Porcupine East Property carries 51 mineral claims over an area of 1,868 hectares and over 6.3 kilometers of strike.
The underlying geology is similar to the Duparquet gold property. These include syenites, and felsic porphyries hosted in mafic and ultramafic volcanic rocks and overlain with younger Temiskaming conglomerates.
The property has been tested with 67 drill holes with a total of 16,657 meters between 1945 and 2013. The most recent program included nine holes for a total of 1,574 meters in 2012 to 2013. Select historic intersections form the shallow drilling on the property include:
- 2.33 g/t Au over 11.8 m (G83-2),
- 2.42 g/t Au over 6.1 m (G82-7),
- 1.20 g/t Au over 10.21 m (G82-5)
- 0.55 g/t Au over 32.11 m (T82-1)
- and 0.93 g/t Au over 29.41 m (T82-10)
The property also includes three known gold showings including the Porcupine-173595, Touriet and Touriet-East showings. These were discovered between 1980 and 1998 by surface prospecting, trenching and diamond drilling. Additionally, intersections associated with these showings include:
- 1.37 g/t Au over 1.3 m and 2.15 g/t Au over 4.5 m (Porcupine East),
- 1.87 g/t Au over 2.2 m and 0.84 g/t Au over 10.3 m for Touriet,
- and 3.1 g/t Au over 2.6 m and 0.4 g/t Au over 18.0 m for Touriet East.
Characteristics of the Touriet showing include a gold-bearing felsic porphyry intrusion bordered by strongly altered and locally sheared and mineralized ultramafic volcanics. IAMGOLD reported typical gold porphyries with low gold grades over large thicknesses:
- T82-10: 0.7 g/t Au over 61.0 m.
- POR98-99: 0.6 g/t Au over 19.4 m
The transaction is expected to close on or before February 3, 2023.
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