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#FCM First Class Metals PLC – Operations update – Coco East and OnGold Earn-in
First Class Metals PLC (“First Class Metals” “FCM” or the “Company”) the UK listed metals exploration company seeking economic metal discoveries across its extensive land holdings, remains focused in northern Ontario, Canada, is pleased to announce that field work on the Coco East base / precious metal property is now underway.
Highlights
· Field work has commenced on the Coco East property, base metal potential
· The Earn-in deal with OnGold Invest Corp (“OnGold”) has been renegotiated, FCM has now acquired 100% of the property as a result the exploration work commitment has been removed.
Marc Sale First Class Metals CEO Commented:
“In true FCM fashion we are endeavouring to put as much of the available funds ‘into-the-ground’, though gold prices are soaring the Coco East property has real potential for base metals. However, the very anomalous gold in lake sediment samples on the OnGold property constitute a significant target which too demands follow-up when appropriate.’
Coco East
The Coco East block of 30 single cell claims covering ~6.3km² situated about 25km north of the town of Terrace Bay. Geologically the property is on the eastern sector of the Big Duck Lake Porphyry. The Big Duck Lake Porphyry contains a number of historic showings as well as the Coco Estelle gold deposit.
The one showing located within the Coco East property boundary, the Big Birch occurrence, where two pits are reported with a 5m spacing, striking east-west. The main pit exposes a 10cm-wide quartz and calcite vein and contains pyrite and possible chalcopyrite mineralisation; historic assay results have returned values of 0.56 g/t Au and 2.83 g/t Ag
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Figure 01 Showing the regional setting of the Coco East claim block with Ontario Mineral Index (OMI) showings.
During the 2022 field season, FCM collected 47 rock samples predominantly in the area of the Big Birch occurrence and historical drilling. Over the winter of 2022/23 six lake sediment samples were collected, Assays returned gold and silver grades that were generally in order of the historic samples,
Figure 02 Showing the main target areas, southern sector being gold and northern base metals.
The Coco East property not only has potential for precious metal targets but also base metals. The geophysical anomaly in the northern sector has been interpreted as a potential eastern continuation of the ‘zinc belt’ from the Winston Lake area.
The Winston Lake Mine closed at the end of the 1990s due to low zinc prices. The Winston deposit was mined between 1988 and 1998, producing approximately 3.3 million tonnes of 14 per cent zinc and one per cent copper.
Today, the critical mineral is hovering between US$2,500 and US$3,000 per tonne. Zinc is in demand for renewable energy technologies in wind, solar and battery storage, as well as for the galvanizing, construction and automotive sectors.
A mine feasibility study published in 2022 shows 2.35 million tonnes at 17.9 per cent zinc and 0.9 per cent copper. There are also some precious metals in the mix, including one million gold equivalent ounces at 13 grams per tonne. Source- Metallum Resources: NPV(8) increases to C$383M(1,2) with average EBITDA of C$102m pa(3) for Superior Lake Zinc Project – Junior Mining Network
The focus of the current field exploration programme will be the geophysical anomaly in the northern sector.
OnGold
The project is located roughly 21km southeast from the town of Manitouwadge, Ontario comprising of 163 single cell mining claims covering about 34km2. Limited previous exploration has been focussed to investigate several discreet magnetic anomalies thought to be associated with Ni-Cu-PGE mineralised mafic-ultramafic intrusions. Similar rock types comprise the Tyko, RJ, Smoke Lake and the recently discovered West Pickle massive sulphide discovery, see link below to the full report:
https://www.geologyontario.mndm.gov.on.ca/mndmfiles/afri/data/imaging/20000021101/20000021101_01.pdf
The 103ppb Au lake sediment sample collected by Emerald Geological Services ‘EGS’ in the winter of 2022/23 also now shows the gold potential of the area.
Figure 03 showing the extended North Hemlo claim block with the contiguous 100% owned OnGold claims.
FCM, as part of the due diligence process, conducted an extension lake sediment sampling campaign in April to March 2023 extending from the wider North Hemlo sampling programme. The initial results from this campaign have reported gold grades of up to 103ppb.
Bruce MacLachlan, Principle of EGS was quoted in a previous press release as saying, “To the best of our knowledge the 103ppb Au Lake sediment value is the highest lake sediment value collected in the Hemlo Belt outside of the deposit area”.
While at a very early stage, these initial results are extremely encouraging and add to the potential for the prospectivity of the property.
Figure 04 Showing geophysical targets identified by OnGold as well as location of the lake sediment samples with the very anomalous 103ppb Au result.
The terms of the revised Agreement, which is now a Purchase Agreement, not Earn-In as the property is now 100% controlled by FCM and the annual work requirements are removed:
Structure of Deal
FCM has assumed 100% of the claim block constituting the ‘OnGold deal’, being the previous executed Agreement.
· The claims cells will be transferred to First Class Metals Canada Inc.
· The existing 2% NSR on southern block with 50% buy back for $500k, remain as is but the buy back is transferred to FCM.
· OnGold to be granted a 2% NSR on northern block with 50% buy back of $500k.
· OnGold to be granted £100k shares in FCM subject to the publication of an FCA approved prospectus.
The amendments made to the original deal are advantageous for FCM, as they grant the company 100% control over the property. This development, if further exploration success ensues, is expected to significantly bolster future value potential as complete ownership will be retained solely by FCM.
The original deal is detailed in the RNS published 14 June 2023 polaris.brighterir.com/public/first_class_metals/news/rns/story/xlkm7gw
Admission of Shares
The Company has become aware that 300 ordinary shares of 0.1p each (“Shares”) that were issued in connection of the exercise of warrants announced on 23 January 2023, were not admitted to trading.
Application is therefore being made for 300 Shares to be admitted to trading on the Main Market of the London Stock Exchange which is expected to be on or around 1 July 2024. These shares rank pari passu with the existing Shares of the Company.
Following the issue of the 300 new Shares, the Company’s issued ordinary share capital shall consist of 82,046,029 Shares. This figure of 82,046,029 represents the total voting rights in the Company and should be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure Guidance & Transparency Rules.
Ends
For further information, please contact:
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James Knowles, Executive Chairman |
07488 362641 |
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Marc J Sale, CEO |
07711 093532 |
Novum Securities Limited
(Financial Adviser)
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David Coffman/ George Duxberry |
www.novumsecurities.com |
(0)20 7399 9400 |
Alan Green presents a Hemlo special on his weekly Stockbox Media Research talk
Alan Green presents a Hemlo special research talk, discussing the Schreiber Hemlo mining belt on the North Coast of Lake Superior, N Ontario, Canada. Alan looks at the activities of incumbent miners operating in the area, and also that of recent entrants Panther Metals #PALM and Power Metal Resources #POW.
Power Metal Resources #POW – Exercise of Ontario Option – Coco East Property
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce that following due diligence work the Company has exercised its option to acquire the Coco East Property (“Coco East” or the “Property”) located on the prospective Schreiber-Hemlo Greenstone Belt in north-western Ontario, Canada.
Coco East is the second of four gold exploration properties upon which the Company has an exclusive option to acquire a 100% interest, (the “Option”) (as announced 26 January 2021) and follows the McKellar option exercise which was announced 18 February 2021.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“Exercising the Option over the Coco East Property further strengthens Power Metals’ landholding in Ontario, following directly on from the acquisition of the McKellar Property which was announced last week.
Coco East is sited upon the eastern end of the Big Duck Lake Porphyry intrusive which is associated with over twenty known gold and/or base metal occurrences including significant gold intersections which were drilled in a neighbouring property during 2017. The property is also directly east of Superior Lake Resources’ Pick Lake / Winston Lake Zinc Project which is currently advancing towards a high grade zinc mine restart.
We are continuing our due diligence review of the remaining two option properties and will provide a further update in due course.”
COCO EAST PROPERTY OVERVIEW
- Located upon the Schreiber-Hemlo Greenstone Belt, Coco East sits at the eastern end of a 4.5km long by 1km wide quartz feldspar porphyry intrusion (the ‘Big Duck Lake Porphyry’) that can be associated with up to twenty-two known gold and/or base metal occurrences.
- Geology of the property consists of intrusive porphyry, ultramafic, metavolcanic and metasedimentary rock packages prospective for both gold and volcanogenic massive sulphide (“VMS”) style copper-lead-zinc-silver mineralisation.
- Regional magnetics survey data shows distinct areas of interest within the property including magnetic highs associated with the eastern end of the Big Duck Porphyry and magnetic ridges which may be indicative of structural faulting and deformation associated with the intrusive event.
- Located approximately 3.5km east of the Coco-Estelle Deposit where diamond drilling during 2017 intersected significant intervals of gold mineralisation including 11m @ 1.96g/t Au from 42m and 5m @ 5.9g/t Au from 63m.1 This is part of the Big Duck Project held by Canada listed CBLT Inc (TSX-V:CBLT) which abuts the Coco western boundary.
- Also 8.4km east of Australian listed Superior Lake Resources (ASX:SUP) high-grade Pick Lake / Winston Lake Zinc Project which has a Resource of 2.35 Mt at 17.7% Zn, 0.9% Cu, 0.38 g/t Au and 34 g/t Ag and for which a mine re-start Bankable Feasibility Study was published in August 2019. 2
- Three historical drill holes are known to exist within the centre the property (on three Claims), these were drilled by Falconbridge Copper Corporation in 1984. Drill hole BD6 is reported to have assayed up to 1.74g/t Au although the exact nature of this intersection has yet to be verified by obtaining the historical core logs. The remainder of the property is considered under explored.
- Situated approximately 20 km due north of the town of Schreiber, Ontario on the Trans-Canada highway. Access to the property is via an old logging road and all-terrain vehicle (“ATV”) trails. Big Duck Lake is located on the western side of the property.
COCO EAST CLAIM STATUS
– Consists of a total of 30 Single Cell Mining Claims (“Claims”) covering a total area of circa 6.4km2.
– Claims are valid through to 20 August 2022 upon which they can be renewed on an annual basis. For renewal the Coco East Claims will require an aggregate work spend of CAD$12,000 (circa £6,912) prior to the individual Claim renewal dates.
ACQUISITION TERMS
The vendors of the Option (the “Vendors”) are a consortium led by established local prospector Brian Fowler who was the Vendor of the Hemlo North Gold Project acquired by Power Metal as announced on 21 January 2021.
In exercising the Option to acquire a 100% interest in the Coco East Property POW will make the following cash and equity consideration:
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Property Name |
Cash (CAD$) |
POW Shares (CAD$) |
Note: POW Acquisition Shares to be issued |
Total Consideration (CAD$) |
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Coco East |
30,000 |
30,000 |
576,000 |
60,000 |
The POW shares payable as consideration are new ordinary shares of 0.1p each in the Company at an issue price of 3.0 pence per share (“Acquisition Shares”). The cash costs of the acquisition are funded from Power Metal’s existing Canadian Dollar cash account.
The Vendors retain a 2% net smelter royalty (“NSR”) on Coco East, Power Metal may purchase 1% of the NSR, at any time, by making a cash payment to the Vendors of CAD$500,000.
The Vendors will continue to work with Power Metal in the local management of any new properties acquired through this transaction; the development and implementation of exploration plans and the identification of further new opportunities.
EXPLORATION PLAN
– Ongoing exploration spend will be at the discretion of Power Metal as the 100% owner of Coco East.
– Preliminary exploration work is expected to include both remote sensing data interpretation and ground-based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing.
– The Province of Ontario has an established mineral exploration industry with a large number of local exploration contractors that could be engaged to fulfill the planned work on a cost-effective basis.
Admission And Total Voting Rights
Application will be made for the 576,000 Acquisition Shares to be admitted to trading on AIM, which is expected to occur on or around 2 March 2021 (“Admission”). The Acquisition Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.
Following Admission, the Company’s issued share capital will comprise 1,133,718,730 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
Reference Sources
1: GTA Resources and Mining Inc announcement, 29 January 2018 https://www.gtaresources.com/assets/jan-29-2018-big-duck-final-re-run-gold-sample.pdf
2: Superior Lake Resources Pick Lake / Winston Lake Zinc Project: https://superiorlake.com.au/pick-lake-winston-lake-zinc-project/#:~:text=The%20Project%20is%20a%20high,ASX%20announcement%2028%20August%202019
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently the subject of drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Power Metal Resources #POW – Exercise of Ontario Option – McKellar Property
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce that following due diligence work the Company has exercised its option to acquire the McKellar Property (“McKellar”) located on the prospective Schreiber-Hemlo Greenstone Belt in north-western Ontario, Canada. McKellar is one of four gold exploration properties upon which the Company has an exclusive option to acquire a 100% interest (as announced 26 January 2021).
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“Exercising the option over the McKellar Property strengthens Power Metals’ landholding over a part of Ontario which is currently seeing heightened junior exploration company activity.
Our due diligence data review has shown McKellar complements Power Metal’s existing Dotted East, Olga Lake and Roger Lake Projects, notably adding ground with indications of VMS style mineralisation sited in association in a structurally prospective fold-hinge setting.
We are continuing our due diligence review of the remaining three option properties and will provide a further update in due course.”
MCKELLAR PROPERTY OVERVIEW
– McKellar covers the under explored core of a geologically prospective regional scale anticlinal fold hinge structure. Located upon the Schreiber-Hemlo Greenstone Belt the geology of McKellar consists metavolcanic and metasedimentary rock packages prospective for both gold and volcanogenic massive sulphide (“VMS”) style copper-lead-zinc-silver mineralisation.
– The property includes several strong Versatile Time Domain Electromagnetic (“VTEM”) geophysics anomalies identified by survey work in 2007, these anomalies have either not yet been drill tested or were inconclusively drilled by shallow holes or trenched by previous claim holders.
– The most recent work within the property was undertaken in 2017, this included soil sampling, outcrop sampling and geological mapping. This work identified an hitherto unmapped exhalative rock unit and geochemical alteration prospective for VMS mineralisation with sample assay data indicating anomalous Au, Zn, Mn, Cd and Ba associated with an undrilled VTEM anomaly. This work concluded further fieldwork with follow-up ground induced polarisation (“IP”) geophysics and drill testing could be warranted.
– Historical sampling undertaken by Noranda Exploration Company Ltd in 1989 at the historical Little Pick Silver Mine reported a channel sample of 1.4m @ 13.0% Zn, 7.1% Pb & 678.0 g/t Ag and a trench sample of 1.1m @ 32.3% Zn, 1.1% Pb & 68.4 g/t Ag, with the VMS style mineralisation reportedly being traced over a 600m strike.
– Located approximately 50 km east of the town of Schreiber and 40 km NW of the town of Marathon, Ontario on the Trans-Canada highway. Access within the property is afforded by all-terrain vehicle (“ATV”) trails. A major power line and the Canadian Pacific railway occur within 1 km of the property.
MCKELLAR CLAIM STATUS
– Consists of a total of 58 Mining Claims (“Claims”) (49 Single Cell Mining Claims and 9 Boundary Cell Mining Claims) covering a total area of circa 12.3km2.
– Claims are valid through to between 7 June 2021 to 26 April 2022 upon which they can be renewed on an annual basis. For renewal the McKellar Claims will require an aggregate work spend of CAD$23,600 of which CAD$15,200 has already been applied. Therefore, an additional net aggregate work spend of CAD$8,400 (circa £4,838) is required prior to the individual Claim renewal dates.
ACQUISITION TERMS
The vendors of the Option (the “Vendors”) are a consortium led by established local prospector Brian Fowler who was the Vendor of the Hemlo North Gold Project acquired by Power Metal as announced on 21 January 2021.
In exercising the Option to acquire a 100% interest in the McKellar Property Power Metal will make the following cash and equity consideration to the Vendors.
|
Property Name |
Cash (CAD$) |
POW Shares (CAD$) |
Note: POW Shares |
Total Consideration (CAD$) |
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McKellar |
50,000 |
50,000 |
960,000 |
100,000 |
The Power Metal shares payable as consideration are new ordinary shares of 0.1p each in the Company at an issue price of 3.0 pence per share (“Acquisition Shares”). The cash costs of the acquisition are funded from Power Metal’s existing Canadian Dollar cash account.
The Vendors retain a 2% net smelter royalty (“NSR”) on McKellar, Power Metal may purchase 1% of the NSR, at any time, by making a cash payment to the Vendors of CAD$500,000.
The Vendors will continue to work with Power Metal in the local management of any new properties acquired through this transaction; the development and implementation of exploration plans and the identification of further new opportunities.
EXPLORATION PLAN
– Ongoing exploration spend will be at the discretion of Power Metal as the 100% owner of McKellar.
– Preliminary exploration work is expected to include both remote sensing data interpretation and ground-based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing.
– The Province of Ontario has an established mineral exploration industry with a large number of local exploration contractors that could be engaged to fulfill the planned work on a cost-effective basis.
Admission And Total Voting Rights
Application will be made for the 960,000 Acquisition Shares to be admitted to trading on AIM, which is expected to occur on or around 25 February 2021 (“Admission”). The Acquisition Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.
Following Admission, the Company’s issued share capital will comprise 1,119,992,730 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently the subject of drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Power Metal Resources #POW adds McKellar, Enable, Magical & Coco East projects to recently acquired Hemlo North Gold Project in Canada
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the Company has signed an option agreement to acquire a 100% interest in four separate gold exploration properties located in the prospective Hemlo and Schreiber area of Ontario, Canada.
The four Option Properties are located within 100km west or southwest of the Company’s new Hemlo North Gold Project (consisting the Dotted East, Olga Lake and Roger Lake 100% owned properties), the acquisition of which was announced on 21 January 2021.
A map showing the Option Properties and the Company’s recently acquired Hemlo North Gold Project may be viewed on the Company’s website through the following link:
https://www.powermetalresources.com/p/236/acquisitions-option-properties-ontario
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“Taken together with our recently acquired Hemlo North Gold Project in the highly prospective Hemlo area of Ontario, Canada, the Option Properties would give Power Metal a significant footprint in the Hemlo/Schreiber district, with ground tenure close to existing mines or other local properties subject to active exploration.
We have moved quickly to secure these interests but given the assessment work involved across four individual properties, we have also secured a 30-day option period to enable due diligence work to be undertaken carefully on the Option Properties (the “Option Period”).
Shareholders will see with our recent actions that we are building a significant portfolio of precious metal interests in North America and that is something we intend to continue should the right opportunities continue to remain available to the Company.”
THE OPTION PROPERTIES:
McKellar
McKellar consists of a total of 58 Mining Claims (“Claims”) (consisting of 49 Single Cell Mining Claims and 9 Boundary Cell Mining Claims) covering a total area of circa 12.3km2. The Claims are valid through to between 7 June 2021 to 26 April 2022 upon which they can be renewed on an annual basis. To meet the requirements for renewal the McKellar Claims will require an aggregate work spend of CAD$23,600 of which CAD$15,200 has already been applied. Therefore, an additional net aggregate work spend of CAD$8,400 (circa £4,838) is required prior to the individual Claim renewal dates.
Underlain by prospective metavolcanic and metasedimentary rock packages, the regional magnetic geophysics shows a possible fold hinge structural setting. The underexplored property is considered prospective for both volcanogenic massive sulphide (“VMS”) copper-lead-zinc mineralisation and orogenic gold deposits. Historical sampling undertaken by Noranda Exploration in 1989 at the historical (1875) Little Pick Silver Mine reported a channel sample of 1.4m @ 13.0% Zn, 7.1% Pb & 678.0 g/t Ag and a trench sample of 1.1m @ 32.3% Zn, 1.1% Pb & 68.4 g/t Ag, with the VMS style mineralisation reportedly being traced over a 600m strike.
Enable
Enable consists of a total of 41 Single Cell Mining Claims covering a total area of circa 8.7km2. The Claims are valid through to 25 July 2022 upon which they can be renewed on an annual basis. To meet the requirements for renewal the Enable Claims will require an aggregate work spend of CAD$16,400 (circa £9,446) prior to the Claims renewal date.
The underexplored Enable property is underlain by gold prospective, greenstone belt, metavolcanic geology and is located on and in proximity to the Terrace Bay batholith contact, which is associated with over 30 known gold occurrences in the wider area.
Magical
Magical consists of a total of 14 Single Cell Mining Claims covering a total area of circa 3km2. The Claims are valid through to 27 July 2022 upon which they can be renewed on an annual basis. To meet the requirements for renewal the Magical Claims will require an aggregate work spend of CAD$5,600 (circa £3,226) prior to the Claims renewal date.
The regional geophysics data shows a possible target related to the intersection of a granitoid intrusion with a regional scale magnetic geophysics lineation. The property is largely unexplored apart from the easternmost Claim cell where, in 1995, Hemlo Gold Mines Inc drilled an induced polarisation (“IP”) geophysics anomaly. Diamond drill hole V95-2 reportedly intersected a 7m zone of silicification containing sericite and sulphides and 12.6m of feldspar porphyry with disseminated pyrite.
Coco East
Coco East consists of a total of 30 Single Cell Mining Claims covering a total area of circa 6.4km2. The Claims are valid through to 20 August 2022 upon which they can be renewed on an annual basis. To meet the requirements for renewal the Coco East Claims will require an aggregate work spend of CAD$12,000 (circa £6,912) prior to the Claims renewal date.
The Coco East property is considered prospective for both mesothermal lode gold and VMS deposits.
It is located on the eastern end of the 4km long Big Duck Lake porphyry intrusion which is associated with 20 gold or gold and base metal occurrences. Almost all of the known gold showings occur along the contact of, or within 1 km of, the outer margin of the main porphyry body.
Coco East is located 8km due east of the Superior Lake Resources Ltd. (ASX:SUP) Superior Lake Zinc Project which contains a VMS style high-grade zinc deposit with a JORC Resource of 2.35 Mt @ 17.7% Zn, 0.9% Cu, 0.38 g/t Au & 34 g/t Ag and a Probable Ore Reserve of 1.96Mt @ 13.9% Zn, 0.6%Cu, 0.2g/t Au & 26.2g/t Ag1.
THE OPTION:
The vendors of the Option (the “Vendors”) are a consortium led by established local prospector Brian Fowler who was the Vendor of the Hemlo North Gold Project acquired by Power Metal as announced on 21 January 2021. Power Metal has secured a 30-day Option to undertake due diligence on the Option Properties.
The non-refundable Option Fee payable to the Vendors is CAD$10,000 payable in cash covering all the Option Properties.
OPTION EXERCISE:
Prior to the Option expiry Power Metal may elect to acquire one or more of the Option Properties.
For the acquisition of a 100% interest in the each of the Option Properties the following cash and equity consideration is payable:
|
Property Name |
Cash (CAD$) |
POW Shares (CAD$) |
Note: POW Shares |
Total Consideration (CAD$) |
|
McKellar |
50,000 |
50,000 |
960,000 |
100,000 |
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Enable |
30,000 |
30,000 |
576,000 |
60,000 |
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Magical |
20,000 |
20,000 |
384,000 |
40,000 |
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Coco East |
30,000 |
30,000 |
576,000 |
60,000 |
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Total (if all properties acquired) |
130,000 |
130,000 |
2,496,000 |
260,000 |
Upon Option Exercise the POW shares payable as consideration are new ordinary shares of 0.1p each in the Company at an issue price of 3.0 pence per share (“Acquisition Shares”).
The cash costs of the acquisition will be funded from Power Metal’s existing Canadian Dollar cash account.
The Vendors will retain a 2% net smelter royalty (“NSR”) in respect of each of the Option Properties. Power Metal may purchase 1% of each NSR for each Option Property, at any time, by making a cash payment to the Vendors of CAD$500,000 per Property.
The Vendors, will continue to work with Power Metal in the local management of any new properties acquired through this transaction; the development and implementation of exploration plans and the identification of further new opportunities.
The Exploration Plan:
– Ongoing exploration spend would be at the discretion of Power Metal as the 100% owner of the Option Projects.
– Preliminary exploration work planned for the Option Properties will include both remote sensing data interpretation and ground-based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing.
– The Province of Ontario has an established mineral exploration industry with a large number of local exploration contractors that could be engaged to fulfill the planned work on a cost effective basis.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
References:
Source 1: Superior Lake Resources Limited https://superiorlake.com.au/pick-lake-winston-lake-zinc-project/#:~:text=The%20Project%20is%20a%20high,ASX%20announcement%2028%20August%202019
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently the subject of drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.