The role of First Nations in Canada is becoming increasingly important even in the early stages of exploration projects. Companies that bring local tribes on board early can hope for faster approval processes in further development. Storm Exploration Inc. (TSX.V: STRM); FRA: L84) has therefore consciously made it a principle to involve local First Nations in all its projects from the very beginning.
Conclusion: Nothing can be done in exploration in Canada against the will of the First Nations anymore. Some companies view the involvement of local tribes as a tedious obligation, while others – like Storm Exploration – seek the approval and support of First Nations from the start. In this specific case, the Naicatchewenin will even become shareholders of the company. Storm is still one of the few pioneers in this approach, but there’s a strong indication that this practice will set a precedent.
The role of First Nations in Canada is becoming increasingly important even in the early stages of exploration projects. Companies that bring local tribes on board early can hope for faster approval processes in further development. Storm Exploration Inc. (TSX.V: STRM); FRA: L84) has therefore consciously made it a principle to involve local First Nations in all its projects from the very beginning.
The company has now signed a Memorandum of Understanding (“MOU”) with the Naicatchewenin First Nation (the “NFN”) for its Gold Standard project in northwestern Ontario. This is already the second agreement of its kind. At the end of July, the company reported on its progress with a similar agreement with the Eabametoong First Nation (the “EFN”) for the flagship Miminiska project.
The MOU for Gold Standard initially creates a framework for ongoing consultations with the NFN. A formal agreement is still pending. The current agreement provides the basis for NFN to be involved in business development through employment, training, and as shareholders. According to the terms of the MOU, Storm Exploration will contribute an amount to a community fund proportional to its exploration expenses and issue common shares of Storm worth $175,000 over a four-year period. The first tranche consists of common shares worth $25,000 upon acceptance by the TSXV. The number of shares issued will be determined by the weighted 20-day average price prior to issuance.
Storm’s President and CEO Bruce Counts commented: “This is an important milestone for the company. Storm firmly believes that the participation of local First Nations is crucial to a project’s success, and I look forward to working with the Naicatchewenin in exploring and developing the Gold Standard property.”
The Gold Standard project is located within the Manitou-Stormy Lake greenstone belt and is prospective for gold and base metals. The property hosts three historical small-scale gold mining operations dating from 1901 to 1903. These gold occurrences have seen little exploration in recent times and have never been drill tested. In 2022, Storm confirmed the high-grade nature of the old workings with prospecting samples yielding grades of up to 166 g/t Au (see Storm press release dated September 27, 2022).
An airborne electromagnetic survey conducted by Storm across the entire property in October 2022 identified a large conductivity anomaly with a strike length of over five kilometers (see Figure 1). The anomaly is located in host rock commonly associated with volcanogenic massive sulfide mineralization (“VMS”). This assumption is supported by shallow historical drill holes that encountered copper and zinc mineralization between 1969 and 1971. (see Storm press release dated February 8, 2023).
Conclusion: Nothing can be done in exploration in Canada against the will of the First Nations anymore. Some companies view the involvement of local tribes as a tedious obligation, while others – like Storm Exploration – seek the approval and support of First Nations from the start. In this specific case, the Naicatchewenin will even become shareholders of the company. Storm is still one of the few pioneers in this approach, but there’s a strong indication that this practice will set a precedent.
