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First Class Metals #FCM – Operations update
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 significant advancements in field activities and supporting technical developments.
Highlights
· Coco East property- field work completed, base metal potential.
· Sunbeam Project- 85 samples from Nuinsco diamond core drilling dispatched for assay.
· North Hemlo- 25 coarse rejects from Dead Otter trend to be re-assayed by Photon Assay
· Zigzag Lithium & Critical Metals Project- Award of an Exploration Permit for three years
Marc Sale First Class Metals CEO Commented:
“At FCM we persist in our aim of enhancing the value of the portfolio. The field work at Coco East ensures the property’s positive standing beyond 2024, furthermore we eagerly await the results from the prospecting in a new area of historic potential. The review of the historic drill core from the Sunbeam Property was our initial focus this year after EGS ‘found’ the TerraX core. The significance of the review is the revelation that from the stripping at Roy and Pettigrew the host porphyry was proved to be auriferous: successful resampling here could revolutionise the property’s potential.
Despite Dead Otter’s assays being the highest recorded from the North Limb of Hemlo, we suspect coarse gold might be skewing fire assay results, possibly misrepresenting the samples. Adopting Photon Assaying, a relatively new method, may resolve this issue.
Lastly the award of a further three years Exploration Permit at Zigzag, supported by the Whitesand First Nation is a welcome event. The permit opens up the new structure we delineated in the south and gives us more options on the core structure that we drilled last December.
It’s been a busy few months for FCM as we enter the summer period with a lot of activity still to look forward to.
As a follow up to my recent field trip to northwest Ontario we have populated additional information to the Data Room and received request from a further company to review specific properties.”
Coco East
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.
Figure 01 Showing the recently re-discovered adit – mine working – in the norther area of the property.
FCM through Emerald Geological Services (‘EGS’) recently undertook a prospecting programme in the northern sector of the property. A previously unknown adit was encountered. Searches of the Ontario Mineral Index ‘OMI’ registrar is ongoing to ascertain if there is any historical information associated with the workings. A number of rock samples were collected from this area of the adit as well other locations and will be dispatched for analysis.
The exploration programme whilst brief has been successful and importantly the assessment credits the work generates will ensure the property remains in good standing into the ’25 field season.
North Hemlo, Dead Otter Trend
The Dead Otter Trend has discontinuous outcrop along the identified >3km strike. The structure mimicking the granite / mafic volcanic contact is sheared and contains significant quartz veining. Where outcrop allows sampling, the gold reported in assays has reached 19.6ppm Au, (19.6g/t). However, there are areas where, whilst gold has been visibly identified in rock samples, the assays have not reflected the apparent potential to report significant gold values. There is possibly a ‘coarse gold issue’ in the northern sector. Additionally, the presence of silver and gold telluride (calaverite) further suggests that the assays are not reflecting the true gold content of the quartz / shear.
Given the relatively small fraction of the overall samples that are used in a standard 50g Fire Assay method, FCM through EGS has selected 25 samples for Photon Assay which utilises a 500g sample in the assay. The sample is run through a high energy X-ray machine which excites the atomic nuclei in the rock, causing them to emit gamma rays at specific energy levels. These emitted gamma rays allow for the detection of gold and silver within the rock sample and, is a non-destructive methodology, as opposed to traditional fire assay, allowing the sample to be retained for further analysis.
The samples are from the original Dead Otter Showing (3.1ppm Au), the ’19 grammer’ as well as samples from Bobby’s Showing which reported 2.2ppm Au.
It is anticipated that this new method of analysis will enhance the potential of the Dead Otter trend and help focus stripping programme the planned this field season.
Sunbeam
After a review of the historic TerraX and Nunisco drill core a total of 83 half core samples (plus one standard and a blank) have been submitted to assay for gold by Fire Assay and a silver / multi element package.
The basis for the additional review and sampling of the core results from the stripping programmes at Roy and Pettigrew that identified that the hosting porphyry was anomalous in gold, with one grab sample reporting over 4ppm Au.
Zigzag
The Exploration Permit application to the Ontario Ministry has been approved for a further three years. The granting of the Permit allows for stripping and further drilling on the main zone identified by FCM’s prospecting, channel sampling and drilling in 2023. The zone remains open in all directions, including down dip.
Previously reported results from an MMI soil sampling programme indicated not only is the main zone open past FCM and historical drilling and channel sampling locations but that there exists the possibility of a subparallel or spur structure to the south (anomalous values reported included Li, up to: 2,600ppm; 4,290ppm Rubidium; 920ppm Cs. The granted permit will allow this to be stripped and if warranted drilled.
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 |
NOTES TO EDITORS
First Class Metals PLC – Background
First Class Metals listed on the LSE in July 2022 and is focused on metals exploration in Ontario, Canada which has a robust and thriving junior mineral exploration sector. In particular, the Hemlo ‘camp’ near Marathon, Ontario is a proven world class address for gold exploration, featuring the Hemlo gold deposit operated by Barrick Gold (>23M oz gold produced), with the past producing Geco and Winston Lake base metal deposits also situated in the region.
FCM currently holds 100% ownership of seven claim blocks covering over 180km² along a 150km strike of the Hemlo-Schreiber-Dayohessarah greenstone belt, exploring for gold, base metals, and rare earth element mineralization. In addition, FCM is carrying out a joint venture with Palladium One on the West Pickle Lake Property in the region, a drill-proven ultra-high-grade Ni-Cu project.
The flagship property North Hemlo had a high-definition low level magnetic Heli-borne survey flown in April 2022, this was followed with ground prospecting which ultimately defined the ‘Dead Otter Trend’ which is a discontinuous 4.5km gold anomalous trend with a 19.6g/t Au peak grab sample. This sampling being the highest known assay ever recorded on the North Limb of Hemlo.
In October 2022 FCM completed the option to purchase the historical high-grade past-producing Sunbeam gold mine near Atikokan, Ontario, ~15 km southeast of Agnico Eagle’s Hammond Reef gold deposit (3.3 Moz of open pit probable gold reserves).
FCM acquired the Zigzag Project near Armstrong, Ontario in March 2023. The property features Li-Ta-bearing pegmatites in the same belt as Green Technology Metals’ Seymour Lake Project, which contains a Mineral Resource estimate of 9.9 Mt @ 1.04% Li2O. Zigzag was drilled prior to Christmas 2023 and results have now been released.
The significant potential of the properties for precious, base and battery metals relates to ‘nearology’, since all properties lie in the same districts as known deposits (Hemlo, Hammond Reef, Seymour Lake), and either contain known showings, geochemical or geophysical anomalies, or favourable structures along strike from known showings (e.g. the Esa project, with an inferred Hemlo-style shear along strike from known gold occurrences).
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$) |
Note: POW Shares |
Total Consideration (CAD$) |
|
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.