Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Canada’s First Mining Gold (TSX: FF) said on Wednesday it had identified additional mineralization at its Springpole gold project in Northwestern Ontario thanks to its 2022 drilling program.
The gold exploration and development company said the newly detected mineralization, in the SW Extension Zone, extends beyond the ore zone boundary as defined in the 2021 pre-feasibility study.
The company said this means that the deposit continuity could be extended outside the current mineral resource area.
“Our team at First Mining had always understood there was more potential to the current resource at Springpole and are encouraged by these results,” chief executive Dan Wilton said in the statement.
The Springpole gold project is one of Canada’s largest open-pit deposits, set to produce more than 300,000 ounces a year. The asset has a mineral resource estimate of 4.67 million ounces of gold and 24.19 million ounces of silver in the indicated category, and 0.23 million ounces of gold and 1.01 million ounces of silver in the inferred category.
First Mining has been growing its landholding in Quebec, with the acquisition of the Porcupine East property from Iamgold (TSX: IMG) in January this year.
The asset is strategically located next to the company’s Duparquet gold project, its second main project, and connects Pitt and Duquesne to the east.
The Vancouver-based company also owns the Cameron gold project in Ontario and a portfolio of precious metals project interests, including the Pickle Crow Gold Project (being advanced in partnership with Auteco Minerals), the Hope Brook Gold Project (with Big Ridge Gold Corp), an equity interest in Treasury Metals, and a portfolio of 20 royalties.
