First Mining Gold Corp (TSE:FF) (OTCQX:FFMGF) (FRA:FMG) announced Monday that it has struck a deal with Exiro Minerals Corp to option a land package near the Springpole Gold Project.
Under the three-year option agreement with Exiro, First Mining said it may earn a 100% interest in Exiro's Swain Post property in northwestern Ontario through future cash and share payments to Exiro during the term of the option, and by completing all assessment work requirements on the property.
The Swain Post property comprises 237 single cell mining claims covering nearly 5,000 hectares. It is located about 20 kilometers (km) west of the Springpole Gold Project and about 5km west of First Mining's western-most property boundary at Springpole.
READ: First Mining Gold marks major milestone for Springpole asset with release of positive pre-feasibility study
"We are excited to add this prospective mineral tenure near our Springpole Gold Project," said First Mining CEO Dan Wilton in a statement.
"We believe that the under-explored Birch-Uchi greenstone belt has the potential to host gold deposits that can add significant longer-term upside to our robust development project at Springpole. We look forward to undertaking regional and targeted exploration programs to assess this potential in the coming year."
The Swain Post property has seen sporadic historic exploration work for both precious and base metals since the 1960s, with the last significant work being done in 2006-2007 by Merrex Gold. The property covers about 15km of the 1km-wide Swain Post Deformation Zone, and is host to 2nd and 3rd order shear zones cutting folded iron formation and mafic and felsic volcanics.
First Mining said it intends to undertake regional data compilation and more detailed geophysics later this year.
Contact the author: patrick@proactiveinvestors.com
Follow him on Twitter @PatrickMGraham