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First Energy considers gold plant

Acquisitive junior First Energy Metals is considering a small plant to take advantage of elevated gold prices, after reporting high-grade samples from its Scramble mine property in Ontario.
First Energy considers gold plant First Energy considers gold plant First Energy considers gold plant First Energy considers gold plant First Energy considers gold plant

Gold-bearing pyrite in cut rock from First Energy Metals’ Scramble property in Ontario

Staff reporter

The company had last week announced results of up to 82.3g/t gold from recently-optioned Scramble, saying two samples assayed more than 2 ounces per tonne.

"The company is waiting for permitting to carry out bulk sampling on the property for metallurgical testwork and looking into the possibility of putting up a small-scale gold processing plant onsite to take advantage of historically high gold prices if possible," CEO Gurminder Sangha said.

First Energy then yesterday reported assays of up to 43.69g/t silver from its Kokanee Creek property in British Columbia.

"The silver results are very encouraging throughout the property, a few samples with high cobalt and tungsten have provided us a lead to carry out detailed sampling work in those areas," Sangha said.

First Energy had announced an option agreement in March to acquire 100% of Kokanee and the Independence gold properties in southeastern BC.

It gained the option to acquire Scramble in June.

In August, it entered an option to acquire the Bald Eagle silver-gold project in BC and separately struck a letter agreement to acquire three gold projects in Australia from a private company.

First Energy also recently announced plans to raise up to C$2 million at 15c per unit, with proceeds earmarked for the Australian transaction, working capital and for exploration work on existing properties.

It last raised a combined $500,000 through the placement of hard dollar units and flow-through shares, both priced at 5c, in April.

The company had changed name from Agave Silver in 2016.

First Energy reporting having working capital of $38,047 at June 30.

Its shares (CSE: FE) have ranged between C4-30c over the past year.

They last traded at 22c to capitalise it at $6.8 million (US$5.2 million).