Metals Creek Resources has signed a memorandum of understanding (MOU) with Mishkeegogamang First Nation concerning its Dona Lake Gold Project in northwestern Ontario.
In a June 15 news release, the Toronto exploration outfit said the aim of the agreement is to build a long-term mutually beneficial relationship "based on trust and certainty."
Company president-CEO Sandy Stares said the MOU is a tangible demonstration of the company's belief that exploration and mining is a "positive catalyst for environmental stewardship, economic development, and social responsibility."
"We conduct our business activities in pursuit of these outcomes, and to create shared value with First Nations, host communities and other stakeholder groups."
Mishkeegogamang is an Ojibway community near Pickle Lake where the Albany River meets Lake St. Joseph.
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MOUs are usually outline agreed-upon conditions between a junior mining company and a First Nation community on how drilling and access to an exploration property will occur. These types of agreements establish a framework and sets the stage for a potential impact benefit agreement (IBA) should a mining project advance to the development stage.
Metals Creek optioned Dona Lake from Newmont (formerly Newmont Goldcorp) in June 2019.
The company said there are four known gold-bearing iron formations on the 1,063-hectare property, southeast of the town of Pickle Lake, host to several historic mines including Dona Lake, Central Patricia and Pickle Crow.
The Dona Lake Mine went into production in 1989 and ceased operations in 1994, producing 246,500 ounces of gold.
Metals Creek obtained the permits to begin an initial 1,200-metre drill and prospecting program this summer.
After combing through old drill logs from the Dona Lake Mine, they believe there's gold mineralization at least 100 metres below the original mine workings based on the deepest hole ever drilled, which yielded an intercept of 4.36 grams per tonne of gold over 21 metres.
A second area underground only saw limited drilling and test mining but what results there were showed signs of gold in a steeply plunging zone.
Besides the Dona Lake project, Metals Creek Resources is half owner with Newmont of the Ogden Gold Property, six kilometres south of Timmins, which includes the former Naybob Gold Mine.
