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First Gold’s New Drill Program Heightens Expectations
By James West
MidasLetter.com
Friday, February 26, 2010
First Gold Exploration Inc. (TSX.V:EFG) announced the launch of a new 7,500 metre drill program on the company’s 85%-controlled Lac Pivert/Rose project Lithium and Rare Earths project in Quebec. This program follows the successful Phase 1 program which saw high grade intercepts confirm the presence of good grades of lithium bearing structures.
Based on this last drill program, investors watching the stock are anticipating continuing good results from this program. Highlights of the last rill program as follows:
The press release announcing the program is excerpted from company sources below:
LAVAL, QUEBEC--(Marketwire - Feb. 25, 2010) - First Gold Exploration Inc. (TSX VENTURE:EFG) (FRANKFURT:F12) is pleased to report that a drill is to be mobilized on Lac Pivert/Rose property early next week. The minimum 7,500-metre drilling program is aimed at testing the extensions along strike and at depth of the new lithium and rare metals zones discovered during the last program, carried out in December 2009. The Company plans to drill over 60 holes 75 to 150 metres long. A map showing the planned locations of the first 25 holes can be found on the Company's web site. A table summarizing the initial drill results is shown below.
In addition, the Company plans to conduct an extensive prospecting and mapping program as soon as possible, with the aim of assessing the new surface showing that returned values of up to 4.6% Li2O, 1,390 g/t Rb, 51.4 ppm Ta, 72.6 ppm Nb, 106.5 ppm Ga and 90 g/t Be (see press release dated January 21, 2010) and identifying new showings over the entire property.
Property Description
The properties lie in the northeastern segment of the Superior Geological Province within the Eastmain Greenstone Belt (NTS Map-Sheet 33C/1). Boisvert (1989) describes a variety of lithologies in the region, including biotite schists and gneisses, basalts, dacites, quartzites, conglomerates, gabbros, granites and pegmatites. Lithologies are generally well foliated with a southeasterly direction, except for the more massive, unfoliated granites and pegmatites. The Lac Pivert and Rose properties host pegmatites that occur as irregular but generally continuous lenses within the biotite schists. Individual pegmatites can attain up to 60 m in width and more than 100 m in length, collectively forming part of a much larger body kilometric in length and up to 300 m wide.
Carlson (1962 MRNFQ report RP 483) identified pegmatites enriched in Rare Earth Elements in the region. Additional work by the Ministre des ressources naturelles et de la faune Qubec ("MRNFQ") uncovered the Rose and Lac Pivert showings in 1961, with a similar metallogenic context to that of Lithium One's Cyr Lithium discovery.
The Lac Pivert showing consists of a pegmatite containing 20% spodumene (a lithium aluminum silicate), beryl (a beryllium aluminum silicate) and trace molybdenite (a molybdenum sulphide). Grab samples returned up to 2.09% Li2O.
The Rose showing consists of a number of en-echelon pegmatite dikes, individually up to 15 m wide, crosscut by centimetric quartz veins. Spodumene and lepidolite (a potassium lithium aluminum silicate) can form centimetric lenses locally composing up to 40% of the pegmatites. Drilling on this showing returned values of up to 1.5% Li2O, 2,755 g/t Rb, 290 ppm Ta2O5 and 155 g/t Be over 13.4 metres.
This type of pegmatite is also associated with the Preissac-Lacorne batholith further south in the Abitibi region near Val-d'Or, where it was mined at the Qubec Lithium mine (Boily, 1995; Mulja et al., 1995; Ste-Croix et Doucet, 2001).
Jean-Sebastien Lavallee (OGQ #773), Director of the Company and Qualified Person under NI 43-101, has reviewed and approved the technical content of this release. Mr. Lavallee has over 15 years of exploration experience in Canada, having worked as a consultant for numerous exploration companies through Consul-Teck Exploration Inc.
Additional Projects
Croinor Gold Project, Quebec
A 50% control of project near Val-D’or at prefeasibility stage. Positive scoping study completed summer, 2009. Croinor now has an NI 43-101 resource comprising 814,228 tons grading 9.11 g/t translating as nearly 240,000 oz. gold, and remains open in several directions, with 90,000 meters of drilling completed to date.
San Javier Gold/Silver/Base Metals Project in Mexico
Earning 50%-interest in prior-producing mine in Sierra Madre del Sur area. First drilling to confirm significant bonanza-grade zones of silver to commence in March 2010. More than 30 veins have now been identified at surface, with each vein between 400 to 500 meters in length, averaging approx. 2.75 meters widths, and widespread mineralization throughout this property remains to be tested. Recently, sampling of high-grade vein material has yielded silver grades ranging as high as 12,905 g/t silver (376.46 oz./t.), 2,439 g/t silver (71.15 oz/t.), 2,356 g/t silver (68.73 oz./t).
Matchi-Manitou Copper/Zinc/Silver Project, Quebec
Earning 50%-interest in project near Val-D’or with strong geochemical anomalies of copper, zinc and silver. Drill targets being established with several types of geophysical surveys. Project is now ready for near-term drilling, and geophysics work has identified two significant targets. Target zones cover 1.5 by 1 kilometers.
First Gold’s current cash position is approx. $C2.5-million, more than sufficient for all exploration and development activities to be undertaken by the company in 2010. The company currently has approx. 60-million shares outstanding, 70-million shares on a fully-diluted basis.
According to a report from National Investor,
"Our editors see the company’s recent high-grade rare-earth elements discovery at its Lac Pivert/Rose project in Quebec as a world-class discovery and having the potential for a significant re-rating of the company’s values in the near term. The Croinor Gold project is likewise a significant emerging gold asset for the company, and should materially benefit its balance sheet values, whether First Gold decides to complete development or perhaps sell its 50% interest. Lastly, the company’s San Javier silver/gold/base metals project in Mexico, now embarking on a significant exploration agenda, appears to hold great promise for a potential further re-rating of First Gold’s values."
First Gold Exploration (TSX:EFG) Follow the company’s progress at www.firstgoldexploration.com.
DISCLOSURE: The parent company of Midas Publishing Group has an option on 400,000 shares of First Gold Exploration.
SOURCE: http://www.midasletter.com/news/1002261_First-gold-exploration-launches-new-drill-program.php
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Rare Earths, Lithium, Gold
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