Hope Brook Gold Project
On July 7, 2015, First Mining Finance Corp. ("First Mining") closed the acquisition of Coastal Gold Corp. which owned the Hope Brook Gold Project. The project consists of 7 mineral and exploration claims that cover 26,650 hectares and is located in the mining-friendly jurisdiction of Newfoundland and Labrador on the southwest coast of Newfoundland, Canada.
- Indicated Resource: 5.5 Mt at 4.77 g/t Au containing 844,000 ounces of gold
- Inferred Resource: 0.84 Mt at 4.11 g/t Au containing 110,000 ounces of gold
Hope Brook Mineral Resource Estimate for Gold at 3.00 g/t Au Cut-off*
||Au Grade (g/t)||Contained Au (oz.)|
1. The resources are based on the technical report entitled “2015 Mineral Resource Estimate Technical Report Hope Brook Gold Project Newfoundland and Labrador Canada” Prepared for First Mining Finance Corp. Effective Date is January 12, 2015.
2. This resource includes only the Mine Zone and 240 Zone areas.
3. This resource is based on the partial percentage block model with dike material removed. Dike percentage is estimated at 18% for the Mine Zone and 0% for the 240 Zone.
4. The gold grades reflect applications of domain-specific raw assay capping factors that range between 55 g/t and 3 g/t Au.
5. The rounding of tonnes may result in apparent differences between tonnes, grade and contained ounces.
6. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental permitting, legal, title, taxation, sociopolitical, marketing or other relevant issues.
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.