Firesteel Resources (TSXV:FTR) (“Firesteel or The Company”) today announced that shareholders, at the Company’s Annual General Meeting held in Toronto on 25th July, have overwhelmingly approved the change of name from Firesteel Resources to Nordic Gold Corporation.
This name change is subject to regulatory approval.
At this time the Company’s trading symbol on TSX-V will remain as FTR, however application has been made to change the name and symbol.
The Company will also undergo a change of corporate colors, logo and identity.
Once the name change is approved, the Company’s social media sites and activities will also be operated under the Nordic Gold name and identity.
Michael Hepworth, President and CEO of the Company said; “We thought long and hard about this change and while we recognize that name changes are disruptive for shareholders, we believe it better reflects the Company’s strategy to become a mid-tier producer in Scandinavia and that will ultimately be better for shareholders.”
About the Company
Firesteel is a junior mining company with a near production gold mine in Finland. The mine is fully built, fully permitted and financed to production via a gold forward sale. Production is scheduled to start in the 4th quarter of 2018.
A recently released PEA was conducted by John T. Boyd Company of Denver, Colorado (“Boyd”).
Summary of the PEA results include:
| Model | IRR | NPV 5 | Payback (Yrs) |
| Pre Tax | 44.6% | $91,540,000 | 1.7 |
| After Tax wo/tax losses | 36.5% | $68,965,000 | 2.1 |
| After Tax w/tax losses | 44.4% | $90,728,000 | 1.7 |
Other Highlights include:
Pre-production capex $7,115,103
75,981 ounces of average annual gold production at a cash cost of $863 per ounce and AISC of $974 per ounce
Measured mineral resources of 355,000 tonnes at 1.132 g/t Au and Indicated mineral resources of 3,442,000 tonnes at 1.248 g/t Au
Inferred mineral resources of 9,030,000 tonnes at 1.531 g/t Au
Mill grade of 1.45 grams per tonne with a recovery of 90.4%
Life of Mine production of 456,600 ounces gold over a 6-year mine life
The PEA is preliminary in nature and includes Inferred Mineral Resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that PEA results will be realized. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
As previously announced, when Firesteel acquired the Laiva Mine, the Company was granted, EUR131,716,248 in tax loss provisions which may be used to offset future taxes should taxable income be earned in Finland prior to expiration of the tax loss carry forwards. The tax loss provisions expire between 2020 and 2028 (see the Company’s audited financial statements for the year ended January 31, 2018 for detailed disclosure of the expiration schedule). The recognition of the tax loss carry forwards have a material impact on the economic assessment of the Laiva Gold Mine project and are contingent upon the Company achieving taxable net income per Finnish tax laws.
Firesteel’s management has identified several opportunities outside of the scope of the mine plan studied in the PEA, which could further improve the mine plan and the economics of the project. Most important of these being the three additional 100% owned exploration properties close to the mine. Firesteel is currently conducting magnetic surveys on all of the company’s properties. All three properties are fully permitted for exploration.
The report also identifies near mine targets for exploration as potentially 3.2 to 5.1 million tonnes grading at 1.44 grams per tonne. This estimate is based on drilling beneath the south and north pits at depths up to 250 m below surface and is open at depth. Further infill and step-out drilling is required to test these targets. Grade estimate is based on assuming the same weighted average grade of the measured, indicated and inferred resources reported in the Boyd report. The report also identifies a target in the eastern extension as potentially 0.85 to 3.2 million tonnes grading 1.25 to 1.45 grams per tonne. This estimate is based on three to five mineralised zones of 200 m to 300 m length, 50 m to 75 m vertical extent and 10 m width. Drilling has identified multiple mineralised zones up to 750 m from the north pit that extend to depths of at least 100 m. Grade estimate is based on intercepts of reconnaissance drilling and the weighted average grade of the measured, indicated and inferred resources reported in the Boyd report. The exploration targets are conceptual in nature as there has been insufficient exploration work to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. The economics of the PEA do not include these exploration opportunities.
Mineral Resources:
Mineral Resources were prepared by JT Boyd (Firesteel Press Release August 21, 2017).
| Classification | Au g/t | Tonnes | Contained Au (troy ozs) |
| Measured | 1.132 | 355,000 | 13,000 |
| Indicated | 1.248 | 3,442,000 | 138,000 |
| Measured + Indicated | 1.237 | 3,797,000 | 151,000 |
| Inferred | 1.531 | 9,030,000 | 445,000 |
The effective date of the estimate is August 9, 2017.
The mineral resources presented here were estimated using a block model with a block size of 9 m by 9 m by 9 m sub-blocked to a minimum of 3 m by 3 m by 3 m using ID3 methods for grade estimation. All mineral resources are reported using an open pit gold cut-off of 0.40 g/t Au.
Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing, or other relevant issues.
The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be expected to be upgraded to an Indicated Mineral Resource with …read more
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