Vancouver's First Energy Metals is on a gold property acquisition spree, this time in the Timmins camp of northeastern Ontario.
The company signed an option agreement to acquire the Shaw Gold Property, southeast of Timmins. It's a cash-and-share deal that involves paying out $96,000 and 600,000 common shares over the next three years.
The 693-hectare property is located in Shaw, Eldorado and Whitney Townships about kilometres southeast of Newmont’s Dome Open pit.
In one spot on the property, a 12-metre shaft was sunk in the 1930s on a quartz vein that returned composite samples of 150.8 grams per tonne (g/t) gold, 43.2 g/t and 35.17 g/t. Historical grab samples returned 766.2 g/t and 229.7 g/t, according to Ontario Geological Survey records.
Company CEO Gurminder Sangha expressed excitement with the acquisition.
“The acquisition follows our business strategy to acquire properties of merit in well established and historical mining camps in order to unlock their full potential through modern-day exploration and deposit model types.”
Just last week, First Energy signed an option agreement on a property in the Red Lake camp in northwestern Ontario, acquiring a 1,880-hectare property in Ball and Todd townships through an option agreement.
In Kenora, the company is pulling a one-tonne bulk sample from its the former Scramble Mine property, east of the community, to do some metallurgical testwork.
The turn-of-the-last century mine has an historic estimate of 150,000 tons at an average grade of 0.24 ounces per one. The deposit on the property is documented to have 70,000 ounces of contained gold with cutoff grade of 0.05 ounces per tons. (1.42 grams per tonne).
First Energy also holds gold properties near Nelson, B.C. and has been exploring on its Phyllis cobalt property, east of Ignace, since 2018.
Last month, the company signed a letter to acquire three gold properties in Australia.