Signing a memorandum of understanding was just the latest step in creating a mutually beneficial relationship between a First Nation and two mining exploration companies.

Wahgoshig First Nation Chief Dave Babin welcomed president and CEO of Sage Gold Inc. Nigel Lees and CEO and director of Sheltered Oak Resources Inc. Robert Hanson to his band office Thursday.

The three men signed a memorandum of understanding that sets the stage for all three parties to move ahead with drilling on the Kerrs gold property near the Town of Matheson.

Hanson explained that 17,000 metres worth of previous drilling by Noranda and Newmont found there was a store of base metals in the property’s geology.

Drilling by Sage Gold and Sheltered Oak in 2005 established the presence of a gold ore body spanning at least 200 metres.

“Through infield drilling of the ore body we’ll build up knowledge of the mineralization and assess its worth,” Hanson said. “The initial program will involve drilling six holes. How we proceed from there depends on what we find.”

The first drilling program, which will add up to a depth of 1,200 m, would likely be followed by a 15-hole program totalling 4,300 m.

Before Sage and Sheltered Oak starting drilling in 2005, the companies and the Wahgoshig band undertook anthropological and archeological studies of the land to identify traditional burial sites on the Kerrs property.

Cooch Point, an old burial site, proved to be the only one in close proximity to the proposed area of exploration.

“We agreed on a way to proceed with the project that wouldn’t disturb the site and protect the area,” said Maurice Kistabish, Wahgoshig’s lands and resources program manager. “That burial site has significant historical value to us.”

Kistabish led the negotiations with the mining companies and will sit on the exploration committee going forward.

Wahgoshig First Nation Chief Dave Babin was not only grateful to the joint exploration companies for aiding the band in developing future economic opportunities, but for helping his people rediscover a part of their history.

“This opportunity is more important than any potential chance for financial gain,” Babin said. “We didn’t know where the ceremonial areas, traditional medicines and burial sites were before the studies. It was important to us to identify the sites and our partners were good enough to delay drilling and help. This is exactly how we hoped they would handle the situation.”

Babin said the band wants to continue making economic development in the community a priority while respecting its traditions and lands. The chief received stock from Lees and stock options from Hanson.

Nishnawbe Aski Nation Deputy Grand Chief RoseAnne Archibald was onhand for the signing. She praised the partnership for the level of respect shown by all parties and said this was the first memorandum of understanding signing she heard of that involved a stock presentation.

Both companies and Wahgoshig First Nation have agreed to negotiate an impact benefits agreement if the project progresses to the mining stage.