An important step forward
The importance of good, trusting cooperation with Canada’s indigenous peoples, the First Nations, is particularly important for exploration companies. Among other things, because the First Nations have extensive rights to the territory that they traditionally inhabit. Storm Exploration (TSXV STRM / WKN A3D37E) has been in negotiations with the Nigigoonsiminikaaning First Nation (NFN) regarding its Gold Standard project for some time – and can now report important progress!
CEO Bruce Counts’ company has announced that it has signed a Memorandum of Understanding (MOU) with the NFN for the project, which is located around 65 kilometers north of the community of Fort Frances in the Canadian province of Ontario. According to Storm, the Gold Standard project has several high-grade gold showings as well as a large, untested VMS target.
The MOU has established a framework for ongoing collaboration with the NFN that allows the community to participate in the Gold Standard project through employment, training and business development. And, according to CEO Counts, Storm can now begin planning a drill program to test the large VMS target discovered on the project area in early 2023.
The letter of intent provides for Storm to contribute to a community fund in proportion to its exploration expenditures. In addition, a total of 1.3 million common shares of the company will be issued over four years. Now, if the Toronto Stock Exchange accepts the deal, 100,000 Storm shares will be issued directly.
The Gold Standard project
Gold Standard is located in the Manitou-Stormy Lake greenstone belt where Storm is exploring for gold and industrial metals. Within the property are three small, historic gold operations dating from 1901 to 1903, an area where little modern exploration has been done and no drilling has ever been conducted. Storm confirmed the high grades of the historic deposits last year with grab samples that returned up to 166 g/t gold.
In October 2022, an electromagnetic survey was flown over the property, which detected a large conduction anomaly with a strike length of more than 5 kilometers. This occurs in host rocks that are often associated with VMS mineralization (volcanogenic massive sulphides). Historical drilling conducted between 1969 and 1971 supported this theory with copper and zinc mineralization.
Conclusion: Negotiations with Canadian First Nations are often complex and time-consuming, but in Canada there is often no way around it when it comes to developing promising projects. In any case, good cooperation is conducive to the success of a project. The fact that Storm Exploration can now start planning and presumably also applying for permits for an initial exploration program is an important step forward. After all, the last news on Gold Standard dates from the beginning of the year.
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