Hope Brook Project (49%)
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On April 6, 2021, First Mining entered into a definitive agreement with Big Ridge Gold Corp. (“Big Ridge”) (TSX-V:BRAU) whereby Big Ridge may earn up to an 80% interest in First Mining’s Hope Brook Gold Project located in the mining friendly jurisdiction of Newfoundland, Canada. The project consists of 7 mineral and exploration claims that cover 26,650 hectares.
|Earn-In Details 1|
|Upfront Consideration (Complete)|
|• $500,000 cash upon closing|
|• 11.5 million shares of Big Ridge upon closing|
|Stage 1 Earn-in (51% earn-in over 3-year period) (Complete)|
|• $10 million in qualifying expenditures|
|• 15 million shares of Big Ridge|
|• 1.5% NSR royalty (0.5% buyback for $2M)|
|Stage 2 Earn-in (+29% to 80% earn-in within 5 years)|
|• $10 million qualifying expenditures|
|• 10 million shares of Big Ridge or "top-up" to 19.9% of shares outstanding|
|• JV to be created upon completion of Stage 1|
|• First Mining free carried to a feasibility study|
|• $2M cash payment upon commercial production|
|1 See First Mining News Release dated April 6, 2021 for further details link|
- Potential for high-grade underground production scenario
- Mineral Resource Estimate:
- 1.2 Million Ounces grading 2.32 g/t Au in Indicated and 231,000 Ounces grading 3.24 g/t Au in Inferred categories
- Open Pit Mineral Resource Estimate: 1.0 Million Ounces grading 2.14 g/t Au in Indicated category
- Significant infrastructure which includes a ramp to 350 m below surface with vent raise, power, access by sea and air, and a strong local labour force
- Strong support from community and government of Newfoundland
- Previous operator of the project produced 752,163 ounces of gold between 1987 - 1997.
- Drill targets with potential to significantly increase resources have already been outlined
Hope Brook Project Mineral Resource Statement, effective January 17, 2023
|Hope Brook||Cut-off Grade
|Hope Brook||Cut-off Grade
|IN PIT AND UNDERGROUND|
|Hope Brook||Cut-off Grade
|Main Zone||0.5 and 2.0||15,646,000||2.25||1,131,000|
- The classification of the current Mineral Resource Estimate into Indicated and Inferred is consistent with current 2014 CIM Definition Standards - For Mineral Resources and Mineral Reserves
- All figures are rounded to reflect the relative accuracy of the estimate.
- All Resources are presented undiluted and in situ, constrained by continuous 3D wireframe models, and are considered to have reasonable prospects for eventual economic extraction.
- Mineral resources which are not mineral reserves do not have demonstrated economic viability. An Inferred Mineral Resource has a lower level of confidence than that applying to a Measured and Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
- The update MRE is based on data for 763 surface and underground drill holes representing 164,865 m of drilling, including data for 60 surface drill holes for 19,090 m completed by Big Ridge in 2021 and 2022.
- The mineral resource estimate is based on 2 three-dimensional ("3D") resource models for the Main Zone and 240 Zones.
- High grade capping was applied to the 1.5 m composite data. A capping value of 50 g/t Au was to the Main Zone and 40 g/t Au for the 240 Zone.
- Average density values were assigned per zone.
- Gold is estimated for each mineralization domain. Blocks (5x5x5) within each mineralized domain were interpolated using 1.5 metre capped composites assigned to that domain. To generate grade within the blocks, the inverse distance squared (ID2) interpolation method was used for all domains.
- It is envisioned that parts of the Main Zone may be mined using open pit mining methods. Open pit mineral resources are reported at a base case cut-off grade of 0.4 g/t Au within a conceptual pit shell.
- It is envisioned that parts of the Main Zone as well as the 240 Zone may be mined using underground mining methods. A selected base case cut-off grade of 2.0 g/t Au is used to determine the underground mineral resource for the Main Zone and 240 Zone.The underground Mineral Resource grade blocks were quantified above the base case cut-off grade, below the constraining pit shell and within the constraining mineralized wireframes.
- Base case cut-off grades consider a metal price of US$1750.00/oz Au and considers a metal recovery of 86 % for Au.
- The pit optimization and in-pit base case cut-off grade of 0.4 g/t Au considers a mining cost of US$2.65/t rock and processing, treatment and refining, transportation and G&A cost of US$15.60/t mineralized material, and an overall pit slope of 55°. The underground base case cut-off grade of 2.0 g/t Au considers a mining cost of US$54.00/t rock and processing, treatment and refining, transportation and G&A cost of US$15.550. The cut-off grades should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rates, mining costs etc.).
- The results from the pit optimization are used solely for the purpose of testing the "reasonable prospects for economic extraction" by an open pit and do not represent an attempt to estimate mineral reserves. There are no mineral reserves on the Property. The results are used as a guide to assist in the preparation of a Mineral Resource statement and to select an appropriate resource reporting cut-off grade.
- The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no certainty that all or any part of the Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. There is no other relevant data or information available that is necessary to make the technical report understandable and not misleading.
- The Author is not aware of any known mining, processing, metallurgical, environmental, infrastructure, economic, permitting, legal, title, taxation, socio-political, or marketing issues, or any other relevant factors not reported in this technical report, that could materially affect the updated MRE.
To view images representing the Hope Brook Mineral Resource Model please click on the following link: https://bigridgegold.com/site/assets/files/5585/2023_hb_mre_slides_for_press_release.pdf?v=0.222
The Hope Brook deposit was discovered in 1983 by BP-Selco Inc. and was mined from 1987 to 1997 with total production reported to be 752,163 ounces of gold plus a copper concentrate from 1993 to 1997. In 2011, Coastal Gold began an exploration program around and below the existing Hope Brook mine resulting in the development of an underground resource based on 3 g/t gold cut-off of 954,000 ounces of gold in combined Indicated and Inferred categories. First Mining acquired Coastal Gold and the Hope Brook property in July 2015.
Hope Brook Geology and Mineralization
The Hope Brook deposit is hosted by pyritic silicified zones within a deformed, strike extensive advanced argillic alteration zone characterized by the presence of silica, sericite, pyrophyillite, kaolinite, alunite, pyrite, chalcopyrite and gold. This structure is approximately 500 m wide and extends for at least 5 km along strike. Gold mineralization predominantly occurs in silicified Late Proterozoic sedimentary and volcanic rocks of the Whittle Hill Sandstone - Third Pond Tuff succession and also in altered quartz feldspar porphyry dikes and sills that intruded this section.
There are two major stages of silicification: an early buff coloured silicification that typically has lower grade gold values (0.5 to1.5 g/t Au) and a later intense blue-grey vuggy silicification typically as breccias superimposed on the earlier silicification. The later stage of silicification is characterized by higher grade gold and copper (2 to 15 g/t Au and 0.3% to1% Cu).
The deposit type is similar in nature to the Haile gold deposit in South Carolina.