First Mining Provides an Update on the Pickle Crow Gold Project Auteco Completes Initial Expenditure Payment Requirement
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NEWS RELEASE
First Mining Provides an Update on the Pickle Crow Gold Project
Auteco Completes Initial Expenditure Payment Requirement
August 11, 2020 – Vancouver, Canada – First Mining Gold Corp. (“First Mining” or the “Company”) (TSX:
FF) (OTCQX: FFMGF) (FRANKFURT: FMG) is pleased to announce that Auteco Minerals Ltd
(“Auteco”)(ASX:AUT) has notified First Mining that it has fulfilled the initial $750,000 exploration
expenditures requirement under the earn-in agreement on the Pickle Crow Gold Project (“Pickle Crow”)
located in Northern Ontario, regarding the first portion of Auteco’s stage 1 earn-in requirements. Auteco
commenced an aggressive exploration program in May at Pickle Crow , which included an extensive drill
campaign, and as a result its initial exploration expenditures, which were required to be completed within
12 months, have now been completed in 4 months.
“We are delighted with the progress that our partners at Auteco have made in advancing the Pickle Crow
Gold Project” stated Dan Wilton, CEO of First Mining. “This partnership has already surfaced significant
value for First Mining shareholders and highlights the potential value of each of the projects in our robust
portfolio of Canadian gold assets. With a well -funded strategy, which include d Auteco raising A$30.4
million last month, Auteco continues to increase their understanding of the Pickle Crow district as they
advance an expanded drill program, now planned for 10,000 metres.”
In order to complete the remaining requirements of the stage 1 earn-in and thereby earn a 51% interest
in PC Gold Inc. (“PC Gold”), the Company’s wholly -owned subsidiary that owns Pickle Crow, Auteco will
need to incur a further $ 4.25 million in expenditures relating to Pickle Crow within the next two years,
and Auteco will need to issue a further 100 million shares to First Mining on or before the date these
expenditures have been completed.
Auteco announced on July 30, 2020, that a second diamond rig had recently arrived on site to test shallow,
high-grade targets. As of that date, 3,800 metres of the expanded 10,000-metre program has been drilled.
Since then, Auteco has established a 24 -person camp at the Pickle Crow site to ensure that exploration
can continue year-round. First Mining plans to update the market on the results from Auteco’s ongoing
drilling as they are released.
Auteco finished the ir quarter with A$4.8 million cash on hand and raised A$30.4 million via a share
placement in July 2020. Auteco is now well funded to execute on the $10 million earn-in requirements to
earn up to an 80% interest in P C Gold (and thereby, Pickle Crow) . Once Auteco has fulfilled all
requirements in the earn -in agreement, First Mining will hold a 20% interest in PC Gold (and thereby,
Pickle Crow) which will be free carried until the earlier of the termination of the earn-in agreement or a
decision to production is made. In addition, once Auteco has completed its Stage 2 earn-in requirements
to increase their interest to 70%, First Mining will be granted a 2% net smelter returns (“NSR”) royalty by
Auteco on Pickle Crow, of which 1% may be bought back by Auteco for US$2.5 million. Further details on
the earn-in agreement are provided in First Mining’s January 27, 2020 news release, and further details
on Auteco’s Pickle Crow drill pro gram are provided in their news release from May 27, 2020 as well as
their June 2020 quarterly activities report released on July 30, 2020.
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Qualified Person
Hazel Mullin, P.Geo., Director, Data Management and Technical Services of First Mining, is a “Qua lified
Person” for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI
43-101”), and she has reviewed and approved the scientific and technical disclosure contained in this
news release.
About First Mining Gold Corp.
First Mining is a Canadian gold developer focused on the development and permitting of the Springpole
Gold Project in northwestern Ontario. Springpole is one of the largest undeveloped gold projects in
Canada, currently hosting a mineral resource base of 4.67 million ounces of gold in the Indicated category
and 0.23 million ounces of gold in the Inferred category 1. A Pre -Feasibility Study is underway, with
completion targeted in early 2021, and permitting is on -going with submission of the Environmental
Impact Statement targeted for 2021. The Company also hold s a large equity position in Treasury Metals
Inc. that is advancing the Goliath -Goldlund gold project towards construction. First Mining’s eastern
Canadian property portfolio also includes the Pickle Crow (being advanced in partnership with Auteco
Minerals Ltd.), Cameron, Hope Brook, Duparquet, Duquesne, and Pitt gold projects.
First Mining was created in 2015 by Mr. Keith Neumeyer, founding President and CEO of First Majestic
Silver Corp.
ON BEHALF OF FIRST MINING GOLD CORP.
Daniel W. Wilton
Chief Executive Officer and Director
For further information, please contact:
Spiros Cacos | Vice President, Investor Relations
Direct: +1 604 639 8825 | Toll Free: 1 844 306 8827 | Email: [email protected]
www.firstmininggold.com
Note:
1. These numbers are from the independent technical report titled “Preliminary Economic Assessment Update for
the Springpole Gold Project, Ontario, Canada”, dated November 5, 2019, which was prepared by SRK Consulting
(Canada) Inc. in accordance with N ational Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI
43-101”) and is available at www.sedar.com under First Mining’s SEDAR profile. Readers are cautioned th at the
PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them that would enable them to be categorized as
mineral reserves, and there is no certainty that the PEA will be realized.
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain "forward -looking information” and "forward -looking statements” (collectively
"forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation
including the United States Pri vate Securities Litigation Reform Act of 1995. These forward -looking statements are
made as of the date of this news release. Forward -looking statements are frequently, but not always, identified by
words such as "expects”, "anticipates”, "believes”, “plan s”, “projects”, "intends”, "estimates”, “envisages”,
"potential”, "possible”, “strategy”, “goals”, “objectives”, or variations thereof or stating that certain actions, events
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or results "may", "could", "would", "might" or "will" be taken, occur or be achie ved, or the negative of any of these
terms and similar expressions.
Forward-looking statements in this news release relate to future events or future performance and reflect current
estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to, statements
with respect to: (i) timing for Auteco incurring the remaining Pickle Crow expenditures , and issuing 100 million shares
of Auteco to First Mining, in order to complete the remaining portion of the stage 1 earn -in requirement; (ii) timing
for the mobilization of a third drill rig to Pickle Crow ; (iii) the Company’s plans to update the market on the results
from Auteco’s ongoing drilling as they are released ; (iv) Auteco being well funded to complete all earn -in
requirements with respect to PC Gold and Pickle Crow and the interests in Pickle Crow that the Company will retain
following the completion of the earn -in; (v) the Company’s focus on developing and permitting S pringpole towards
production; (vi) timing for the completion of a Pre -Feasibility Study for Springpole and the announcement of the
results of such a study; (vii) timing for the submission of an Environmental Impact Statement for Springpole; (viii) the
Company holding a large equity position in Treasur y Metals Inc.; and (ix) realizing and unlocking the value of the
Company’s gold projects for the Company’s shareholders. All forward-looking statements are based on First Mining's
or its consultants' current beliefs as well as various assumptions made by t hem and information currently available
to them. There can be no assurance that such statements will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such statements. Forward -looking statements re flect the
beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions
and estimates that, while considered reasonable by the respective parties, are inherently subject to significant
business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and
unknown, could cause actual results, performance or achievements to be materially different from the results,
performance or achievements that are or may be exp ressed or implied by such forward -looking statements and the
parties have made assumptions and estimates based on or related to many of these factors. Such factors include,
without limitation: the Company’s business, operations and financial condition potentially being materially adversely
affected by the outbreak of epidemics, pandemics or other health crises, such as COVID -19, and by reactions by
government and private actors to such outbreaks; risks to employee health and safety as a result of the outbre ak of
epidemics, pandemics or other health crises, such as COVID -19, that may result in a slowdown or temporary
suspension of operations at some or all of the Company's mineral properties as well as its head office; fluctuations in
the spot and forward pri ce of gold, silver, base metals or certain other commodities; fluctuations in the currency
markets (such as the Canadian dollar versus the U.S. dollar); changes in national and local government, legislation,
taxation, controls, regulations and political or economic developments; risks and hazards associated with the
business of mineral exploration and exploration drilling programs, development and mining (including environmental
hazards, industrial accidents, unusual or unexpected formations, pressures, cav e-ins and flooding); the presence of
laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by
local communities, indigenous populations and other stakeholders; availability and increasing costs assoc iated with
mining inputs and labour; the speculative nature of mineral exploration and development; title to properties.; and
the additional risks described in the Company’s Annual Information Form for the year ended December 31, 2019 filed
with the Canadi an securities regulatory authorities under the Company’s SEDAR profile at www.sedar.com, and in
the Company’s Annual Report on Form 40-F filed with the SEC on EDGAR.
First Mining cautions that the foregoing list of factors that may affect future results is not exhaustive. When relying
on our forward -looking statements to make decisions with respect to First Mining, investors and others should
carefully consider the foregoing factors and other uncertainties and potential events. First Mining does not undertake
to update any forward -looking statement, whether written or oral, that may be made from time to time by the
Company or on our behalf, except as required by law.
Cautionary Note to United States Investors
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada,
which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve
estimates included in this news release have been prepared in accordance with NI 43-101 and the Canadian Institute
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of Mining, Metallurgy, and Petroleum 2014 Definition Standards on Mineral Resources and Mineral Reserves. NI 43 -
101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure
an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including
NI 43 -101, differ significantly from the requirements of the SEC, and mineral resource and reserve information
contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and
without limiting the generality of the foregoing, the term "resource” does not equate to the term "reserves”. Un der
U.S. standards, mineralization may not be classified as a "reserve” unless the determination has been made that the
mineralization could be economically and legally produced or extracted at the time the reserve determination is
made. The SEC's disclosu re standards normally do not permit the inclusion of information concerning "measured
mineral resources”, "indicated mineral resources” or "inferred mineral resources” or other descriptions of the amount
of mineralization in mineral deposits that do not co nstitute "reserves” by U.S. standards in documents filed with the
SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be
converted into reserves. U.S. investors should also understand that "infe rred mineral resources” have a great
amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot
be assumed that all or any part of an "inferred mineral resource” will ever be upgraded to a higher category. Under
Canadian rules, estimated "inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies
except in rare cases. Investors are cautioned not to assume that all or any part of an "inferred mineral resource”
exists or is economically or legally mineable. Disclosure of "contained ounces” in a resource is permitted disclosure
under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not
constitute "reserves” by SEC standards as in -place tonnage and grade without reference to unit measures. The
requirements of NI 43 -101 for identification of "reserves” are also not the same as those of the SEC, and reserves
reported by the Company in compliance with NI 43 -101 may not qualify as "reserves” under SEC standards.
Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made
public by companies that report in accordance with U.S. standards.