TSX-V-listed Big Ridge Gold has earned a 51% ownership interest in Hope Brook gold project, in Newfoundland, having completed the Stage 1 earn-in requirements under a 2021 agreement with owner First Mining Gold.

Big Ridge has incurred C$10-million in qualifying exploration expenditures at Hope Brook, issued 15-million common shares to First Mining, and granted to First Mining a 1.5% net smelter returns royalty on Hope Brook, of which 0.5% can be bought back by Big Ridge for C$2-million.

Big Ridge has until June 8, 2026 to acquire an additional 29% direct interest in Hope Brook by incurring a further C$10-million in exploration expenditures and issuing additional Big Ridge shares to First Mining that would result in First Mining owning 19.9% of the issued and outstanding Big Ridge shares outstanding.

Upon completion of the Stage 2 earn-in, First Mining will hold a 20% interest in Hope Brook which will be free carried until the completion of a feasibility study by Big Ridge.

“First Mining is delighted that Big Ridge has completed its C$10-million worth of Stage 1 expenditures on the Hope Brook project in such an expeditious timeframe,” stated First Mining CEO Dan Wilton.

“Our partnership with Big Ridge has surfaced significant value for First Mining’s shareholders and continues to highlight the potential value for the Hope Brook deposit. Our team remains encouraged and eagerly awaits results from Big Ridge’s ongoing Phase 1 drill programme.”

To date, Big Ridge has completed 61 diamond drill holes and released results from 33 of those holes. The Phase 1 drill programme at Hope Brook has focused on connecting the Main Zone and the 240 Zone near surface and at depth, respectively, and testing the down-dip extensions to both the Main and 240 Zones. Results from the Phase 1 drill programme will be included in the updated mineral resource estimate that Big Ridge expects to issue in the first half of 2023.

Hope Brook is an advanced stage, high-grade gold project that produced 752 162 oz of gold from 1987 to 1997. Hope Brook hosts an indicated gold resource totalling 5.5-million tonnes grading 4.77 g/t gold for 844 000 oz and inferred resources totalling 836 000 t grading 4.11 g/t gold for 110 000 oz, based on a 3.0 g/t cut-off grade and a long-term gold price of $1 200/oz.