Golden Goose Resources Corp. press release
First Mining Announces Updated Goldlund Resource And Goldlund Exploration Update
CSE - Canadian National Stock Exchange · Gold · Lithium · Silver · Copper · Canada
VANCOUVER, BC / ACCESSWIRE / March 27, 2019 / First Mining Gold Corp. (''First Mining'' or the ''Company'')is pleased to announce the results of an updated mineral resource estimate for its wholly-owned Goldlund gold project (''Goldlund'') in northwestern Ontario, Canada.
Updated Goldlund Resource
This updated mineral resource estimate, which has an effective date of March 15, 2019, was prepared in accordance with National Instrument 43-101 _Standards of Disclosure for Mineral Projects_(''NI 43-101'') by WSP Canada Inc. (''WSP'') of Sudbury, Ontario. A technical report for this updated mineral resource estimate for Goldlund will be filed by the Company under the Company's SEDAR profile at www.sedar.com, and on the Company's website, within 45 days of the date of this news release.
Only two of seven domains were updated in order to incorporate drilling results from the 40,000 metre infill drill program completed in 2018. The two zones updated are Zone 1 and Zone 7. A summary of the changes in the updated mineral resource estimate for Goldlund is as follows:
Changes to Zone 1:
Zone 1 Indicated Resource gold (''Au'') ounces (''oz.'') increased by 37,950 oz. This increase in oz. corresponds to a decrease in tonnage of 625,600 tonnes from 5,508,000 tonnes at an average grade of 1.65 grams per tonne (''g/t'') Au to 4,882,400 tonnes at an average grade of 2.16 g/t Au.
Zone 1 Inferred Resource Au oz. decreased by 219,800 oz. This represents an overall reduction in tonnage of 6,514,000 tonnes, with the number of tonnes decreasing from 17,802,000 tonnes at an average grade of 1.36 g/t Au to 11,288,000 tonnes at an average grade of 1.54 g/t Au.
Changes to Zone 7:
Zone 7 Indicated Resource Au oz. increased by 210,750 oz. This increase in oz. represents a corresponding increase in tonnage of 4,161,600 tonnes at an average grade of 1.58 g/t Au from zero tonnes previously.
Zone 7 Inferred Resource Au oz. decreased by 446,560 oz. after adjusting for the proportion of Inferred Resource tonnes removed due to the upgrade of certain tonnes to the Indicated Resource category. This represents an overall reduction in tonnage of 16,019,000 tonnes, with the number of tonnes decreasing from 17,947,000 tonnes at an average grade of 1.28 g/t Au to 1,928,000 tonnes at an average grade of 1.29 g/t Au.
Overall Changes to the Goldlund Resource:
In total, Indicated Resource Au oz. increased by 248,700 oz. This increase in oz. corresponds to an increase in tonnage of 3,595,900 tonnes from 9,324,100 tonnes at an average grade of 1.87 g/t Au to 12,860,000 tonnes at an average grade of 1.96 g/t Au.
In total, Inferred Resource Au oz. decreased by 628,400 oz., after adjusting for the proportion of Inferred Resource tonnes removed due to the upgrade of certain tonnes and grade to the Indicated Resource category. This represents an overall reduction in tonnage of 22,533,000 tonnes from 40,895,000 tonnes at an average grade of 1.33 g/t Au to 18,362,000 tonnes at an average grade of 1.49 g/t Au.
Daniel W. Wilton, Chief Executive Officer of First Mining, stated, ''This resource update provides a solid foundation upon which we can continue to grow the Goldlund resource. We are pleased with the increase in Indicated Mineral Resources at Goldlund, and with our enhanced understanding of the Goldlund deposit as a result of this latest resource update on the project. While the pit-constrained Inferred Resource contains fewer tonnes and ounces, we have a much greater confidence in the overall resource now that it incorporates an additional 40,000 m of infill drilling. We believe our technical team will benefit from this greater understanding of, and confidence in, the controls on mineralization at Goldlund as we continue to advance this exciting project and further unlock its substantial exploration potential.''
The following table (Table 1) provides a comparison between the mineral resource estimate from the initial NI 43-101 technical report on Goldlund, dated February 7, 2017, that was prepared for First Mining by WSP, and the updated mineral resource estimate that takes into account the additional 138 drill holes in Zones 7 and 1 that were drilled by First Mining during the 2017/2018 Phase 1 and 2 drill programs at Goldlund:
Table 1: Undiluted Mineral Resource Estimates Within aUS$1,350/oz Whittle Pit Shell
| Resource Classification | WSP 2017 Initial Resource Estimate | WSP 2019 Updated Resource Estimate | | | | | | Tonnes | Grade (Au g/t) | Ounces | Tonnes | Grade (Au g/t) | Ounces | | | | | | | | | | | Measured | - | - | - | - | - | - | | Indicated (Zone 1) | 5,508,000 | 1.65 | 292,197 | 4,882,400 | 2.16 | 330,150 | | Indicated (Zone 2) | 1,642,900 | 1.76 | 93,000 | 1,642,900 | 1.76 | 93,000 | | Indicated (Zone 3) | 0 | - | - | - | - | - | | Indicated (Zone 4) | 1,664,600 | 2.73 | 146,100 | 1,664,600 | 2.73 | 146,100 | | Indicated (Zone 5) | - | - | - | - | - | - | | Indicated (Zone 7) | - | - | - | 4,161,600 | 1.58 | 210,753 | | Indicated (Zone 8) | 508,600 | 2.00 | 29,200 | 508,600 | 2.00 | 29,200 | | Indicated (Total) | 9,324,100 | 1.87 | 560,497 | 12,860,000 | 1.96 | 809,200 | | Measured & Indicated (Total) | 9,324,100 | 1.87 | 560,497 | 12,860,000 | 1.96 | 809,200 | | Inferred (Zone 1) | 17,802,000 | 1.36 | 778,422 | 11,288,000 | 1.54 | 558,600 | | Inferred (Zone 2) | 1,028,000 | 1.22 | 40,000 | 1,028,000 | 1.22 | 40,000 | | Inferred (Zone 3) | 1,385,000 | 1.61 | 71,666 | 1,385,000 | 1.61 | 71,666 | | Inferred (Zone 4) | 734,000 | 2.40 | 57,000 | 734,000 | 2.40 | 57,000 | | Inferred (Zone 5) | 1,284,000 | 1.19 | 49,000 | 1,284,000 | 1.19 | 49,000 | | Inferred (Zone 7) | 17,947,000 | 1.28 | 737,004 | 1,928,000 | 1.29 | 79,688 | | Inferred (Zone 8) | 715,000 | 0.90 | 21,000 | 715,000 | 0.90 | 21,000 | | Inferred (Total) | 40,895,000 | 1.33 | 1,754,092 | 18,362,000 | 1.49 | 876,954 |
Notes:
Since the initial NI 43-101 technical report on Goldlund was filed by First Mining on SEDAR on February 7, 2017, First Mining has completed 40,197 metres (''m'') of drilling on the current resource body at Goldlund across the following two drill programs:
A Phase 1 drill program comprising a total of 100 holes (24,300 m of drilling) over the entire Zone 7 portion of the granodiorite dike, with 87 of the holes intersecting intervals of significant gold mineralization. Drill holes were spaced at 50 m along strike by 25 m across strike in order to address the nugget effect of very high gold values. The program confirmed that mineralization presents as free gold and calaverite in a quartz-ankerite pyrite stockwork. The stockwork is very consistent from the hangingwall to the footwall of the granodiorite, whereas the gold distribution occurs irregularly in the stockwork above inflections in the strike of the footwall of the dike. This drill program helped the Company's technical team to delineate additional Indicated resource ounces at Goldlund and to enhance our geological knowledge of the mineral deposit.
A Phase 2 drill program comprising a total of 38 new holes (14,961 m of drilling), mostly all in Zone 1 of the resource body, with 33 of the holes intersecting intervals of significant gold mineralization. This drill program targeted existing Inferred resources in the vicinity of the historic underground workings. The constraining wireframes were adjusted by WSP to reflect the additional information presented in the Phase 2 drill hole data.
The results of the Phase 1 and 2 drill programs have previously been announced by First Mining (for a comprehensive summary of the Phase 1 results please refer to the Company's news releases in 2017 dated April 25th, May 2nd, May24th, June 20th, July 10th, July27thand September 11th; for a comprehensivesummary of the Phase 2 results, please refer to the Company's newsreleases in 2018 dated February 5th, February8th, April 17thand May 15th).
These 138 drill holes in Zones 7 and 1 that were drilled by First Mining during the Phase 1 and 2 drill programs were incorporated by WSP into the updated mineral resource estimate for Goldlund, nearly doubling the number of holes in Zone 7 that had been used by WSP for their initial 2017 resource estimate.
During the course of the Zone 7 drilling, First Mining geologists observed that while the entire width of the granodiorite sill that hosts mineralization was susceptible to the development of stockwork, not all of the stockwork was susceptible to gold mineralization. Gold mineralization was shown to concentrate in the third of the sill toward the footwall. Consequently, the incorporation of this increased geologic understanding resulted in a reduction in tonnes in the "in-situ" model for Zone 7 which was further impacted by the Whittle pit constraint applied to develop the reportable resource.
The Zone 1 domain is both larger in area and more extensively drilled than Zone 7, and it also exhibits some zoning of gold mineralization within the granodiorite sill. However, the extent of the spatial concentration of this mineralization is less pronounced than at Zone 7. After incorporating drill data from the Phase 2 drilling, WSP made adjustments to the wireframes of the mineralized zone in Zone 1 to reflect this new understanding of the spatial concentration of the mineralization, which resulted in fewer Inferred Resource tonnes in the pit-constrained resource at a higher average grade.
In summary, the updated mineral resource estimate for Goldlund incorporated more than 40,000 m of incremental drilling, the majority of which was focused on increasing the confidence of the resource in Zone 7. While the increased data density and geological understanding of the deposit resulted in increased confidence of the resource, adding 3,535,900 tonnes into the Indicated Resource at an average grade of 1.96 g/t, it also resulted in a reduction in tonnes and ounces in the Inferred Resource category. The First Mining team believes that the increased understanding of the deposit will assist us in better targeting subsequent drill programs aimed at growing the resource at Goldlund, which remains open along strike to the northeast, to the southwest and at depth.
Goldlund Regional Exploration Update
In June 2018, First Mining commenced a regional exploration diamond drilling campaign at Goldlund designed to test the extension of the known mineralized trend approximately 10 kilometres ("km") northeast of the mineralized material at the current resource area. The primary objective of this program was to verify historical sampling and drilling results, outline new resources and demonstrate the potential of the northeastern section of the Goldlund land package. The exploration drilling was focused on the Miller and Eaglelund targets.
Miller Prospect Results
Step-out drilling at the Miller prospect, located 10 km to the northeast of the main Goldlund deposit, yielded gold in a similar geological setting to the current resource area at Goldlund. Eight diamond drill holes at Miller (1,256 m of drilling) all exhibited the Goldlund-style mineralization of quartz-carbonate-pyrite-gold stockwork in a granodiorite dike. The Company has previously released the results for these eight drill holes at the Miller prospect (for a comprehensive summary of these drill results, please refer to the Company's news releases dated August 20, 2018 and September 20, 2018).
Highlights of the Miller drill campaign included 108 m of2.43 g/t Au, and 31.0 m of 4.54 g/t Auin hole MI-18-002; 48.0 m of 1.17 g/t Auin hole MI-18-003; and 49 m of 2.58 g/t Auin MI-18-007, including 21.5 m at 5.54 g/t Au. The frequency ofoccurrence of visible gold ("VG") at Miller was much greater thanencountered in the Goldlund infill holes, with VG observed in sevenout of the total eight holes drilled in this program.
Final results for all Miller holes are presented below in Table 2, and include all results of metallic screen fire assays which were rerun on selected samples, some of which still had pending assays at the time of First Mining's last news release on Goldlund in September 2018.
Table 2: Final 2018 Drill Results from the MillerProspect
| | Hole ID | From (m) | To (m) | Length (m) | Au (g/t) 3 | | MI-18-001 | MI-18-001 | 7.00 | 114.6 | 107.60 | 0.42 | | inc | 15.00 | 88.6 | 73.60 | 0.55 | | | inc | 16.00 | 18.3 | 2.30 | 2.01 | | | and inc | 18.00 | 18.3 | 0.30 | 9.15 | | | and inc | 23.30 | 29.6 | 6.30 | 2.01 | | | and inc | 27.30 | 27.6 | 0.30 | 32.12 | | | and inc | 77.60 | 88.6 | 11.00 | 1.43 | | | and inc | 87.60 | 88.6 | 1.00 | 9.09 | | | MI-18-002 | MI-18-002 | 0.42 | 142.5 | 142.08 | 1.90 | | inc | 1.50 | 109.5 | 108.00 | 2.43 | | | and inc | 57.50 | 88.5 | 31.00 | 4.54 | | | and inc | 75.50 | 82.5 | 7.00 | 14.66 | | | and inc | 81.50 | 82.5 | 1.00 | 88.80 | | | and inc | 102.50 | 109.5 | 7.00 | 9.61 | | | and inc | 108.50 | 109.5 | 1.00 | 54.47 | | | MI-18-003 | MI-18-003 | 69.00 | 72.0 | 3.00 | 1.19 | | and | 90.00 | 138.0 | 48.00 | 1.17 | | | inc | 90.00 | 90.5 | 0.50 | 16.10 | | | and inc | 94.00 | 97.5 | 3.50 | 2.42 | | | and inc | 105.00 | 106.0 | 1.00 | 3.90 | | | and inc | 115.00 | 130.0 | 15.00 | 1.70 | | | and inc | 125.00 | 125.5 | 0.50 | 19.10 | | | and inc | 137.70 | 138.0 | 0.30 | 11.80 | | | MI-18-004 | MI-18-004 | 34.00 | 57.8 | 23.80 | 0.54 | | inc | 34.00 | 35.0 | 1.00 | 2.56 | | | and inc | 52.00 | 57.8 | 5.80 | 1.40 | | | and inc | 55.00 | 56.0 | 1.00 | 6.12 | | | MI-18-005 | MI-18-005 | 46.00 | 47.0 | 1.00 | 4.18 | | and | 68.00 | 78.0 | 10.00 | 0.45 | | | and inc | 72.00 | 74.0 | 2.00 | 1.25 | | | and | 109.00 | 110.0 | 1.00 | 1.00 | | | MI-18-006 | MI-18-006 | 76.00 | 77.0 | 1.00 | 1.38 | | and | 102.00 | 124.0 | 22.00 | 0.70 | | | inc | 103.00 | 109.4 | 6.40 | 2.15 | | | and inc | 103.62 | 104.0 | 0.38 | 20.80 | | | and inc | 109.00 | 109.4 | 0.40 | 5.37 | | | and | 145.00 | 147.0 | 2.00 | 1.48 | | | and | 169.00 | 170.0 | 1.00 | 3.01 | | | MI-18-007 | MI-18-007 | 66.00 | 69.0 | 3.00 | 4.24 | | inc | 66.00 | 67.0 | 1.00 | 9.16 | | | and | 89.00 | 138.0 | 49.00 | 2.58 | | | inc | 94.50 | 116.0 | 21.50 | 5.54 | | | and inc | 107.50 | 109.0 | 1.50 | 9.17 | | | and inc | 114.00 | 115.0 | 1.00 | 94.60 | | | MI-18-008 | MI-18-008 | 135.00 | 149.0 | 14.00 | 0.63 | | inc | 135.50 | 138.0 | 2.5.0 | 1.85 | | | and inc | 146.00 | 147.0 | 1.00 | 2.14 | |
Notes:
1. Assaying for the Miller drill program was done by SGS at their laboratories in Red Lake, Cochrane and Lakefield, Ontario. Prepared samples were analyzed for gold by lead fusion fire assay with an atomic absorption spectrometry (''AAS'') finish. Multi-element analysis was also undertaken by two-acid aqua regia digestion with ICP-MS and AES finish. 2. Reported widths are drilled core lengths; true widths are unknown at this time. Assay values are uncut_._ 3. Au values in bold text contain results of metallic screen fire assay reruns.
The Miller prospect is along strike and contains the same volcanic-intrusive stratigraphy as Goldlund, and thus opens up a 10 km long priority exploration corridor between the current resource area at Goldlund and the Miller prospect, as shown in Figure 1 below. See Figure 2 below for a cross-section of the Miller prospect. None of the drill results from the Miller prospect were incorporated into the updated mineral resource estimate for Goldlund. Step out and infill drilling at Miller is a priority work program in 2019 with a goal of establishing an initial resource.
Figure 1. Priority Exploration Corridor at Goldlund
[](http://pr.report/IsKvAR6F)
Figure2. Cross-Sectionthrough the Miller Prospect, Looking Northeast
[](http://pr.report/6E1CeHXr)
Eaglelund Prospect Drill Results
In addition to the drilling at the Miller prospect, First Mining also completed a further seven diamond drill holes at the Eaglelund prospect (638 m of drilling), and one diamond drill hole comprising 50 m of drilling at the Miles prospect (see Figure 3 and Table 4 for locations), and the results of this drilling are presented in Table 3 below.
The holes at Eaglelund and Miles were targeted close to the locations of historical drill holes that were first drilled in the 1950s and 1980s, several of which reported gold mineralization (although locations and assay results for these holes cannot be verified). Some narrow gold intersections were encountered in this latest drilling, notably in the south west region of the Eaglelund target, with hole EL-18-002 intersecting 1.0 m at 2.22 g/t Au, and hole EL-18-003 intersecting 2.0 m at 6.42 g/t Au. No significant gold mineralization was encountered in the northeast area of drilling; however, mapping and drill logging show that the granodiorite sill, the host rock of gold mineralization, is faulted off and replaced by a sheared feldspar porphyry in this area. The faulted portion of the granodiorite sill has not been located during this drill campaign, hence additional drilling is required to delineate this and to better understand the control and distribution of the mineralization at the Eaglelund and Miles prospects.
Table 3. Drill Hole Results from the Eaglelund / MilesProspects
| Hole ID | From (m) | To (m) | Length (m) | Au g/t | | EL-18-001 | 2.0 | 3.0 | 1.0 | 0.14 | | and | 10.0 | 13.0 | 3.0 | 0.08 | | and | 26.0 | 41.0 | 15.0 | 0.08 | | inc | 33.0 | 38.0 | 5.0 | 0.14 | | EL-18-002 | 9.0 | 10.0 | 1.0 | 0.26 | | and | 18.0 | 19.0 | 1.0 | 2.22 | | and | 22.0 | 23.0 | 1.0 | 0.12 | | and | 27.0 | 28.0 | 1.0 | 0.22 | | and | 33.0 | 35.0 | 2.0 | 0.14 | | and | 44.0 | 45.0 | 1.0 | 0.16 | | EL-18-003 | 8.0 | 21.0 | 13.0 | 0.12 | | and | 28.0 | 30.0 | 2.0 | 6.42 | | inc | 29.0 | 30.0 | 1.0 | 10.11 | | EL-18-004 | no significant mineralization | | | | | EL-18-005 | no significant mineralization | | | | | EL-18-006 | 115.0 | 117.0 | 2.0 | 0.29 | | EL-18-007 | 83.0 | 84.0 | 1.0 | 0.31 | | and | 94.0 | 95.0 | 1.0 | 0.28 | | ML-18-001 | no significant mineralization | | | |
Notes:
1. Assaying for the Eaglelund and Miles drill program was done by SGS at their laboratory in Lakefield, Ontario. Prepared samples were analyzed for gold by lead fusion fire assay with AAS finish. Multi-element analysis was also undertaken by two-acid aqua regia digestion with ICP-MS and AES finish. 2. Reported widths are drilled core lengths; true widths are unknown at this time. Assay values are uncut_._
Figure 3. Plan Map, 2018 Regional Drill Program
[](http://pr.report/KacT6Qqf)
Table 4. Drill Hole Locations at the Eaglelund and MilesProspects
| Hole ID | Azimuth ° | Dip ° | Length (m) | UTM East | UTM North | | EL-18-001 | 50 | -85 | 74 | 556343 | 5533104 | | EL-18-002 | 0 | -90 | 50 | 556343 | 5533104 | | EL-18-003 | 60 | -85 | 50 | 556376 | 5533122 | | EL-18-004 | 180 | -50 | 104 | 556476 | 5533194 | | EL-18-005 | 135 | -50 | 104 | 556535 | 5533210 | | EL-18-006 | 135 | -50 | 119 | 556581 | 5533259 | | EL-18-007 | 67 | -55 | 137 | 556408 | 5533108 | | ML-18-001 | 310 | -55 | 50 | 554611 | 5531873 |
Deep Drilling Encounters Mineralization atDepth
In addition to this regional exploration program, as part of the Phase 2 drill program, four holes in Zone 7 that were originally drilled during the Phase 1 program were extended deeper, for an additional 938 m of drilling, demonstrating that gold mineralization at Goldlund continues to considerable depths in Zone 7. Drill holes GL-17-10, GL-17-051, GL-17-106 and GL-17-108 were extended to depths of 629, 629, 455 and 500 m respectively. Drill results for these deep extensions are presented in Table 5 below (also previously reported in the Company's news release dated February 5, 2018).
Table 5. Drill Hole Results from Zone 7 DeepDrilling
| | Hole ID | From (m) | To (m) | Length (m) | Au g/t | | GL-17-010 | GL-17-010 | 389 | 390.6 | 1.6 | 1.49 | | and | 545 | 628 | 83 | 1.35 | | | inc | 545 | 546 | 1 | 74.95 | | | and inc | 575 | 580 | 5 | 3.19 | | | and inc | 576 | 577 | 1 | 13.63 | | | GL-17-051 | GL-17-051 | 369 | 441 | 72 | 0.65 | | inc | 369 | 371 | 2 | 4.87 | | | and inc | 398 | 399 | 1 | 6.27 | | | and inc | 413 | 421 | 8 | 2.59 | | | and inc | 413 | 415 | 2 | 6.18 | | | GL-17-106 | GL-17-106 | 315 | 371 | 56 | 0.4 | | inc | 325 | 327 | 2 | 1.19 | | | and inc | 355 | 357 | 2 | 4.74 | | | and inc | 369 | 371 | 2 | 1.37 | | | and | 401 | 402 | 1 | 5.86 | | | GL-17-108 | GL-17-108 | 366 | 368 | 2 | 1.48 |