First Mining Gold Corp. (TSX:FF, OTCQX:FFMGF) has hailed the publication of an NI 43-101 updated resource for its Duparquet gold property in the Abitibi in Quebec, which pegs it as one of the top four undeveloped gold projects in the Canadian province.
The new report comes from the master database of drill data, which contains 904 holes for 270,119 metres (m) and 173,831 sampled intervals. It includes 57 holes for 9,548m, which were not included in the previous 2013 estimate.
With these holes included, the resource increases to 3.4 million ounces (Moz) in the measured and indicated (M&I) category, an increase of 327,000 ounces, and to 1.6 Moz in the inferred, an increase of 193,000 ounces.
The total measured resource estimate for Duparquet comes in at 8,500 ounces at a grade of 1.43 grams per ton (g/t); the indicated is 3.43 million ounces at 1.55 g/t, while inferred is 1.63 million ounces at 1.36 g/t.
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Dan Wilton, CEO of First Mining, said in a statement that he was excited about the new resource.
"Duparquet is an advanced stage project that has benefited from 270,000m of historical drilling and was advanced to a PFS level in 2014.
"This resource growth from incorporating the 2013-2018 drilling is just the beginning of what we see as immense value potential here at Duparquet.
"Based on the size of its current resource, Duparquet represents one of the top four undeveloped gold projects in the province of Quebec. Its above average M&I open pit grade of 1.52 g/t Au (gold) provides excellent mining flexibility and along with its size and location, make it a very versatile deposit amenable to different potential mining scenarios with good future growth potential," he said.
Wilton also noted the project had access to "excellent infrastructure and skilled labour" and the firm intended to complete an updated economic study in the near future and to develop an "exploration path to support potential resource expansion, resource classification upgrading, and discovery of new deposits in this underexplored district".
Duparquet comprises the Beattie, Donchester, Central Duparquet, Dumico properties and the tailings from the former Beattie mine over an area of 1,079.2 hectares (Ha) covering a strike length of 8 kilometres (km).
Gold was initially discovered in the Duparquet Township in 1910 by John Beattie.
The Beattie and adjoining Donchester mines were in production from 1933 to 1956, producing over 1.3 million ounces of gold. In the mid-1930s, Beattie Gold Mines was the largest gold producer in Quebec.
From the 1980s to 2007, very limited exploration was carried out.
Clifton Star had an option on the property between 2009 and 2014 and surface diamond drilling and channel sampling was carried out, along with an environmental baseline study, environmental assessment study and numerous metallurgical studies.
Mineral resource estimates were also carried out that were included in the preliminary economic assessment and a pre-feasibility study. The Clifton Star option was terminated in 2014 and the property was returned to the previous owners, with Clifton Star retaining a 10% interest in the companies that held the properties.
Based on metallurgical tests, First Mining said the Duparquet project appears amenable to standard gold recovery processes. A combination of flotation, pressure oxidation and cyanide leach processes has shown a gold recovery ranging from between 94.7% and 96.5%.
Additional diamond drilling on multiple zones would likely upgrade some of the inferred resource to the indicated category and/or add to the inferred since most of the mineralized zones have not been fully explored at depth or close to surface infrastructures, the company added.
First Mining has a portfolio of gold projects in Canada, with the most advanced being the Springpole asset in northwestern Ontario, which is one of the largest undeveloped gold projects in Canada. Here, it has commenced a feasibility study and permitting activities are on-going with a draft environmental impact statement (EIS) for the project submitted in June this year.
First Mining also owns the Cameron, Duparquet, Duquesne and Pitt gold projects, all advanced-stage gold projects in Ontario (Cameron) and Quebec. Its portfolio of gold project interests also includes the Pickle Crow gold project being advanced in partnership with AuTECO Minerals Ltd, the Hope Brook gold project being advanced in partnership with Big Ridge Gold Corp, an equity interest in Treasury Metals Inc and a portfolio of 21 gold royalties.
Contact the author at giles@proactiveinvestors.com