First Mining Gold (TSX: FF) (OTCQX: FFMGF) has significantly grown in its Quebec landholding with the acquisition of the Porcupine East property from Iamgold (TSX: IMG), which is strategically located next to the company's Duparquet gold project and connects the Pitt and Duquesne gold projects to the east.
As consideration, First Mining will issue 2.5 million shares in its capital and grant a 1.5% net smelter return royalty on the Porcupine East property to Iamgold. It will also make a future contingent payment of $500,000, in cash or shares, on the declaration of a minimum of 350,000 oz. gold resource on the property.
Furthermore, First Mining will make a future contingent payment of $1 million, in cash or shares, to be paid within 12 months of commercial production being declared at its Duparquet gold project, as long as any major surface infrastructure related to the Duparquet project has been constructed on the Porcupine East property.
The Porcupine East property consists of 51 mineral claims covering an area of 1,868 hectares and includes 7.3 km of strike along the Destor-Porcupine fault zone (DPFZ) as well as numerous favourable mineralized splays or secondary structures originating off of the DPFZ. The underlying geology on Porcupine East is very similar to that of the adjoining Duparquet gold property, according to First Mining.
"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 km of favourable stratigraphy in Quebec, in the heart of the Abitibi greenstone belt," stated Dan Wilton, CEO of First Mining. With the addition of Porcupine East, First Mining's land package in Quebec now totals over 5,800 hectares.
The Porcupine East property has been tested with 67 drill holes totalling 16,657 m between 1945 and 2013. The most recent drilling program was carried out in 2012 to 2013, consisting of nine holes for a total of 1,574 metres.
Select historic intersections from the relatively shallow drilling on the property include 2.33 g/t gold over 11.8 metres, 2.42 g/t gold over 6.1 metres, 1.20 g/t gold over 10.21 metres, 0.55 g/t gold over 32.11 metres and 0.93 g/t gold over 29.41 metres.
The Porcupine East property currently hosts three known gold showings as defined in SIGEOM (Quebec government database). These include the Porcupine-173595, Touriet and Touriet-East showings that were discovered between 1980 and 1998 by surface prospecting, trenching and diamond drilling.