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#FCM First Class Metals PLC – Exploration Progress 2024 Season
First Class Metals PLC (“First Class Metals” “FCM” or the “Company”) the UK listed company focused on the discovery of economic metal deposits across its exploration properties in Ontario, Canada is pleased to provide an exploration update for the work conducted in 2024 field season.
Exploration Programme Highlights
· Gold (Au) results from the stripping channel samples, combined with the completion of the soil sampling programme at North Hemlo, have increased the potential width of gold anomalism along the Dead Otter trend (DOT) to approximately 30m, reinforcing its significance along its >3km strike length. Notably, high-grade grab samples include 19.6 g/t Au and 13.6 g/t Au.
· A review of historical drill core from the Sunbeam property, including TerraX (former claim owner) core, supports the gold anomalism in the host porphyry theory as reported in the 1 February 2024 RNS. https://firstclassmetalsplc.com/announcements/6183576 The analysis highlights a significant 10m+ alteration halo surrounding high-grade intersections, expanding the target zone. Notable historical drill results include Hole 57751, which returned 19.4 g/t Au over 0.63m from 5.33m and 15.17 g/t Au over 1.37m from 21.44m.
· Patterson Grant Watson (PGW) has been commissioned to interpret the magnetic geophysical survey flown in late summer 2024 at the Kerrs Gold Project. The interpretation aims to develop drill targets for the potential expansion of the historical NI 43-101 resource, which currently stands at 7.04 Mt at 1.71 g/t Au for 386,467 oz Au (Inferred, using a 0.5 g/t cut-off grade).
· Building on the success of the 2024 exploration program, a winter work program announced on 23 December 2024 has commenced, featuring lake sediment sampling at the North Hemlo and the extended Sunbeam property, along with a Very Low Frequency (VLF) survey at North Hemlo, aimed at identifying / refining exploration targets and unlocking further potential.
· GT Resources (TSXV: GT1) has applied for exploration permits over their Tyko block, which includes the West Pickle Lake JV, a high-grade nickel sulphide discovery.
Marc J. Sale CEO First Class Metals commented: “The 2024 field season was very much a year of consolidation for FCM in which we advanced both North Hemlo and Sunbeam as well as acquiring the Kerrs gold project. The potential of both the former is still considered significant and work conducted forms a firm basis for further work. The advance of North Hemlo and Sunbeam will be the focus of this year’s field work. With assured funding secured from the Seventy Ninth Group and an enhanced understanding of the geology at our flagship properties, FCM is poised to launch a comprehensive and targeted exploration programme on these key assets in 2025. This robust foundation also enables us to advance satellite projects like Esa and Kerrs, driving our growth and unlocking their full potential”
North Hemlo Exploration geochemistry update:
· Soil sampling at North Hemlo has increased the potential width of the gold anomalism of the Dead Otter trend.
· Strong support from pathfinder elements, particularly molybdenum, similar to that found at the Barrick Hemlo Gold Mine, highlighting the expanding potential of the trend.
· Structural review of the Dead Otter trend planned.
· Winter field work – Lake sediment sampling and Very Low Frequency (VLF) survey over targets in North Hemlo initiated
· GT Resources (TSXV: GT1) has applied for exploration permits over their Tyko block, which includes the West Pickle Lake JV, a high-grade nickel sulphide discovery.
Exploration of the Dead Otter trend was the focus of activities in 2024 on the North Hemlo block of claims. Work included the stripping at three locations (one area subsequently extended) soil sampling in the vicinity of the three stripped areas as well a further prospecting around the 2.3ppm Au sample (a stripped locality).
Gold assay results from the channel samples, as well as the baswate metal values, including additional channels cut at the Dead Otter and 19 grammer showing, have all been received. It is encouraging that most samples are anomalous to highly anomalous in gold, though no values exceeded one ppm (1 g/t). Given the high grades in previous grab samples (see figure 1) and the fact that the Photon assay results validated those grabs it further emphasises the ‘spotty’ nature of the gold reporting and therefore the requirement to fully understand the geochemical distribution of the gold. From the stripping and other field work it is also now believed that a strong structural component exists controlling the gold emplacement, as such a firm structural understanding will greatly enhance the potential success of any drill programme targeting the Dead Otter trend.
Figure 1 shows the original grab samples and the locations of the stripped areas.
Subsequent to the initial stripping and trenching a further short extension and sampling programme was completed at two locations. These results further validate the robust gold anomalous characteristics of the trend. In conjunction with this follow-up programme and prior to the soils sampling orientation survey, prospecting was undertaken in the vicinity of the 2.3ppm sample / trenches. This resulted in further anomalous but sub 1ppm Au results. However, the pathfinder element molybdenum (characteristically associated with the gold at the Hemlo mine) reported high (2290ppb) in the grab samples to the north of the Dead Otter trench, where some of the higher gold in soils were also reported. Additionally, there were anomalous gold in soil samples from the end of the line to the south of the 19 grammer.
Figure 2 showing historic high-grade samples, location of two soil sample orientation areas, with results, indicating a far wider anomaly that originally defined.
Furthermore, the prospecting in the vicinity of the stripped area reported a 0.5ppm (0.5g/t) in a grab sample 30 metres north of the 2.3pppm showing / stripped area and also reported up to 0.43% copper, whilst a second sample anomalous in gold reported 7g/t Ag and 0.33% Cu.
This indicates that the Dead Otter trend as originally targeted could have a greater width or be comprised of more than one sub parallel structures. Irrespective there is mounting evidence that the (gold) anomalism is far wider than originally factored and the potential greater than previously anticipated. The variable locations of the reporting of the gold, copper and molybdenum also suggests metal zonation, again a common factor in mineral deposits.
In order to better understand the structural controls FCM will now finalise discussions with a leading structural geologist to undertake a detailed study of the geological exposure at the stripped areas with the aim of increasing the structural understanding of the mineralisation. This will preface the field work and will allow a focussed exploration of the trend once ground conditions allow access.
In parallel FCM is conducting an ‘in-house’ review of the LiDAR (Light Detection and Ranging) covering the Dead Otter trend to identify any prominent cross structure which might be loci for the gold mineralisation. Integrating the LiDAR with the hi-res. mag. previously flown, the geochemistry and the structural study is expected to help focus the exploration push in the spring.
The work planned will give a better understanding of the geology, structure and mineralisation and will optimise any proposed drilling. This focussed approach will overall save time and costs.
Winter work programme is now underway on the North Hemlo claim block. Emerald Geological Services (EGS) are undertaking a combined lake sediment sampling programme as a follow-up and expansion of a previous programme. In conjunction a Very Low Frequency (VLF) geophysics and magnetic survey will being conducted at up to seven location where anomalous gold in lake sediments returned values up to 103 ppb Au from sampling in 2022 and 2023.
VLF and Magnetic surveying are also planned along the Dead Otter Trend.
The Company, after consultation with Bruce MacLachlan of EGS decided to conduct a Very Low-Frequency (VLF) and magnetic survey, as this would be conducive to mapping out conductors related to faults, alteration and sulphide mineralisation in the area of the anomalous gold in Lake sediments and add important information relating to the structures at the Dead Otter trend.
As VLF surveying can be carried out during the winter on the ice, costs are significantly reduced.
Bruce, CEO of EGS commented: “We look forward to over laying the geophysical results on the anomalous lake sediments and the Dead Otter trend geochemistry to guide the next steps for follow up work”.
Sunbeam Property
· Results from the review of the TerraX core from the Sunbeam property support the gold anomalism in the host porphyry reported in the RNS 1 February 2024 https://firstclassmetalsplc.com/announcements/6183576
· Soil sampling orientation survey at the Roy and Pettigrew and other locations completed
· Winter work will commence next month, including lake sediment sampling on the original Sunbeam property and its extended areas, to refine targets and unlock potential.
Sunbeam property extending over 70km contains three historic development sites: Sunbeam, the most exploited, Roy and Pettigrew. However, along the three known mineralised structures a number of other significant gold bearing sites have been identified, such as Road zone and Rubble. The historic developments as well as the widespread occurrence of gold (along the structures) emphasise the gold endowment of the property and the potential for a major discovery.
Review of Nuinsco and TerraX core
In 2023 stripping and associated grab sampling in the areas of the Roy and Pettigrew developments on the Sunbeam property identified anomalous (4.98 g/t Au over 0.5m) in the ‘host’ / wall rock porphyry. This discovery was an important development in the exploration on the Sunbeam property. Whilst it is known that the quartz veining variously hosted by sheared mafic volcanics contains significant gold (one Nuinsco drillhole sample reported 93.3g/t over 0.44m), the gold bearing potential of the porphyry was not documented.
Through dedicated efforts, a majority of the modern core drilled by TerraX at the Sunbeam property from multiple sites was successfully located. All the core has now been (re)logged, photographed and is now securely stored under FCM control. This asset will be invaluable as we advance the property’s exploration.
During the review of the Nuinsco and TerraX core samples were collected from Nuinsco holes, as the TerraX holes were more thoroughly sampled in the past. Including standards and blanks 80 samples were collected of intervals deemed to be significantly altered and mineralized, or adjacent to intervals which returned anomalous historical gold results, (>50 ppb Au generally considered to be anomalous).
A combination of new and historic results highlights the presence of relatively wide zones of low-grade gold.
Roy zone
· From 38m 0.71g/t Au over 13.8m
· From 41.0m 0.43g/t Au over12.3m
WN2 zone
· From 28.8m 0.33g/t Au over 11.8m
AL198 Zone
· From 63.3m 0.30g/t Au over 10.3m @63.3m.
Rubble Zone
· From 20.3m 0.61g/t Au over 12.3m.
Pettigrew
No new samples were taken from Pettigrew, (Nuinsco did not undertake any drilling there) however historic results by TerraX confirm that there are high grade intersections:
· Hole 57751: 19.4 g/t Au over 0.63m at 5.33m and 15.17 g/t Au over 1.37m at 21.44m
The ‘new’ and historic zones when considered with the known high grade gold intersections both in drill hole and in the stripping, combined with the robust nature of the three mineralised structures makes the Sunbeam property a significant district scale target.
Sunbeam Soil Sampling
Late in the 2024 season, a soil sample orientation programme was complete over several of the historic gold developments. The rationale was, based on the gold identified in the host porphyry, to see whether assaying soil samples in lines orthogonal to the trends would highlight wider areas of increased anomalism which could then be explored by ground prospecting and stripping where permitted, see Figure 3 for the location of the soil survey areas and results. Considering this was an orientation survey the results indicated areas of Au anomalism not previously identified as well as indicating that some of the classic pathfinder elements, such as arsenic (As) copper and lead (Pb) require further modelling.
Figure 3 showing the major mineralised structural trends, historic developments, as well as the locations of the mini grid orientation soil sample lines, note the cohesive anomaly at Roy.
A property / trend wide soil sampling programme is planned, this will increase the geochemical understanding, potentially identify further zones along the trends warranting invasive exploration, possibly drilling. Certainly, it will be a far more cost effective method of exploration than premature drilling.
However, the soil results from the area around the Roy development already support further drilling between the historic drill holes of the 80’s
Winter work programme:
FCM has commissioned EGS to undertake a lake sediment sampling programme this winter.
It is anticipated to commence next month and be completed with results returned for designing additional exploration work later this season.
The impetus of the exploration on the Sunbeam property will be the follow up of the soil survey, but the lake sediment programme will be the first sampling conducted by FCM on the extension claims on the property. To date data review has not revealed much if any historic work in this area. Figure 4 shows the proposed locations of the lake sediment samples. A number of ‘reference’ samples are also proposed around the historic developments in order to gauge the levels of anomalism from the new work.
Figure 4 showing the mineralised trends on the Sunbeam property and with the locations of the proposed lake sediment samples.
Advances on other properties
· FCM has contracted PGW of Toronto to undertake the interpretation of the recently flown low level hi-resolution geophysical data over Kerrs Gold Property. This work is anticipated to take several weeks.
· FCM is also in discussion with the owners of the Kerrs Gold drill database that would allow a review of the NI 43-101 resource.
· FCM understands that GT Resources, the owner of the vast Tyko property and 80% Joint Venture partner on West Pickle Lake is involved in ‘negotiations between themselves, the relevant First Nations and the Ontario government’. Meanwhile FCM understands that several Exploration permit applications across the block have also been lodged.
· The Esa soil anomaly will be further appraised with infill lines intended to identify sites for stripping. In the north around the ‘Hemlo look alike sample’ of 0.7ppm and extending further north it is proposed a ‘glacial till’ sampling programme is undertaken.
· FCM is also investigating metallurgical (benefaction) studiers on the core from the Zigzag hard rock lithium discovery.
· A significant development at the Quinlan Property has occurred, as four centrally located claims, previously held by a third party, have now lapsed and been successfully staked. As a result, these claims have been reintegrated into the terms of the existing option agreement. This development ensures that exploration activities can proceed without obstruction, as these claims are no longer under external ownership.
Other field work activities are currently in the planning stage and will be reported on as appropriate.
For Further Information:
Engage with us by asking questions, watching video summaries, and seeing what other shareholders have to say. Navigate to our Interactive Investor hub here:
https://fcm-l.investorhub.com/link/MP7o0P
For further information, please contact:
James Knowles, Executive Chair
Email: JamesK@Firstclassmetalsplc.com
Tel: 07488 362641
Marc J Sale, CEO
Email: MarcS@Firstclassmetalsplc.com
Tel: 07711 093532
Novum Securities Limited (Financial Adviser)
David Coffman / George Duxberry
Website: www.novumsecurities.com
Tel: (0)20 7399 9400
Axis Capital Markets (Broker)
Lewis Jones / Ben Tadd
Website: Axcap247.com
Tel: (0)203 026 0449
First Class Metals #FCM – Private Subscription. New Directors Share Loan
First Class Metals PLC (“First Class Metals” “FCM” or the “Company”) is a UK metals exploration company focused on the discovery of economic metal deposits across its extensive Canadian – Northern Ontario land holding, is pleased to announce that it has completed a private placing of 3,035,714 ordinary shares of £0.001 par value (“Shares”) (the “Placing Shares”) at a price of 2.8 pence per Placing Share (the “Placing Price”), raising gross proceeds of £85,000 (the “Placing”).
The Placing Price represents a 5.6% premium to the mid-market closing price of the Company’s shares on 16 July 2024, the last trading date prior to the completion of the placing.
Director’s-Stock Lending Agreement(s)
The Company does not presently have sufficient headroom to enable the issue and admission of the Placing Shares which are required to be issued pursuant to the Placing without the production of a FCA approved prospectus. The Company is therefore proposing that the director, James Knowles, loan a number of shares amounting, in aggregate, to the Placing Shares, to the Company by means of a share loan agreement (the “Share Lending Agreement”), to facilitate the Placing by the Company. This loan involves no consideration being paid or security granted to James Knowles or a chargeable fee.
The Placing is expected to be completed on or around 18 July 2024.
The Share Lending Agreements provide for the allotment of an aggregate of 5,912,059 new Shares in the Company to James Knowles by 30 December 2024 to replace the Shares loaned in terms of the Share Lending Agreement.
James Knowles has elected not to charge a fee for the loan of these shares.
Material Related Party Transaction
James Knowles is a director of the Company. The Share Lending Agreement is a material related party transaction (“MRPT”) under the Disclosure Transparency & Guidance Rules
Marc Sale, Marc Bamber and Andrew Williamson, being the independent directors for the purpose of this MRPT, have approved the MRPT as being fair and reasonable from the perspective of FCM and its shareholders.
Issue of Fee Shares & Zigzag Second Year Option to Nuinsco
In addition, 1,785,714 Shares are being placed with various professional partners, to satisfy outstanding professional fees from parties who have opted to take payment in Shares over a cash payment. We welcome this commitment to the Company.
Zigzag Year Two Share Option Payment
1,090,631 new Shares are being issued to Nuinsco Resources Limited in respect of the year two Zigzag ‘option to earn in’ (1see news release 9th March 2023), they will rank pari passu with the Company’s existing issued ordinary shares.
1https://polaris.brighterir.com/public/first_class_metals/news/rns/story/x8eolox
Both the professional fee shares & Zigzag Second Year Option payment are being made from the Share Lending Agreement.
Total Voting Rights
The total number of voting rights in the Company remains unchanged. The figure of 91,741,361 may be used by shareholders in the Company as the denominator for calculations to determine if they have a notifiable interest in the share capital of the Company under the Disclosure Guidance and Transparency Rules, or if such interest has changed.
Directors Participation
As part of the Placing, 428,571 Shares were placed with two Directors of the Company, as set out below:
|
Director |
Number of new Shares |
|
Marc Sale |
321,429 |
|
James Knowles |
107,142 |
Ends
For further information, please contact:
|
James Knowles, Executive Chairman |
07488 362641 |
|
|
Marc J Sale, CEO |
07711 093532 |
Novum Securities Limited (Financial Adviser)
|
David Coffman/ George Duxberry |
www.novumsecurities.com |
(0)20 7399 9400 |
First Class Metals #FCM – Commencement of Field Operations
First Class Metals PLC (“First Class Metals” “FCM” or the “Company”) the UK metals exploration company seeking large scale metal discoveries across its extensive Ontario land holding is pleased to provide an operations update on activities across the portfolio.
Highlights
- Canada field work has been initiated, with three exploration teams deployed.
- Channel Sampling of the Rare Earth Element (REE) Diatreme at McKellar underway.
- Sunbeam historic review widened to encompass detailed core review from historical drill holes. Grades up to 93.3g/t Gold (AU), see table 2.
- Field base set up and exploration soon to commence on the North Hemlo and Esa properties to follow up on the successes of 2022.
First Class Metals PLC through its 100% owned Canadian subsidiary controls nine properties in northwest Ontario, see figure 1. The properties cover collectively 230km² though three properties account for over 60% of the area under licence. The properties have assessment credits through 2023, regardless, FCM intends to undertake exploration of all the properties this field season, with the intention of drilling at least one.
Figure1-Northwest Ontario showing the locations of the FCM properties with Sunbeam in the West through to Zigzag and then the Schreiber-Hemlo Properties in the East.
Marc Sale CEO commented:
“FCM is pleased to announce that exploration has now started for the 2023 Field Season, we have a vigorous programme planned to follow up on last year’s stellar performance, specifically At North Hemlo and Esa with the intention to define drill targets. FCM will also undertake exploration at Sunbeam to define drill targets as well as prospecting the wider licence. Similar work is also intended at Zigzag. Other properties will be explored, further evaluated as time and priorities allow. The priority remains to drill at least one location this season.”
McKellar
Initial field work will focus on the McKellar Rare Earth Element (REE) diatreme, this work has commenced with a programme of sawn channel sampling being conducted, see figure 2.
Figure 2-the Emerald Geological Services (EGS) team cut channels being sampled at McKellar.
The McKellar diatreme occupies a topographic low and occurs within a north trending linear structure. The diatreme breccia may have been emplaced within a shear or fault zone, however, owing to vegetation cover geologic data to confirm this is vague.
Historically general prospecting, geological mapping and rock sampling of the diatreme was focused on discerning whether gold, platinum and palladium were associated with the diatreme structure and what REE the diatreme carried.
FCM has previously reported the historic assays from a prospecting programme in 2013 by R Renner, 5 bedrock grab samples were taken and assayed, results of which and other historic reported assayed samples from the diatreme area are included in the table below.
| Historical assay results for selected elements (including REE), McKellar Creek Diatreme: | Value |
| Gold Au | 25 ppb |
| Platinum Pt | 17 ppb |
| Neodymium Nd | 300 ppm |
| Lanthanum La | 400 ppm |
| Beryllium Be | 2.8 ppm |
| Cerium Ce | 513 ppm |
| Yttrium Y | 214 ppm |
| Strontium Sr | 1280 ppm |
| Thorium Th | 180 ppm |
| U308 | 38 ppm |
Table 1-Historic McKellar REE Diatreme grab sample assays.
During a brief campaign in 2022 the team collected ten rock samples, of which nine were grab samples of outcrop in the vicinity of an identified drill hole and the other a ‘float’ / boulder sample in a creek immediately to the southwest. The results were anomalous but did not replicate the historic grades. It is intended that the current sampling will verify and hopefully even expand the potential outlined by the historic assays.
Sunbeam Historic Drill Core Review
A second team is mobilising to review the historical drill core from the Sunbeam Property. This is in collaboration with and leads on from the detailed review of the historic data which is now complete.
Figure 3-EGS Team loading core for removal to a cutting facility for review.
Historical drilling at Sunbeam by Nuinsco:
In July 2021, Nuinsco reported grading up to 93.3g/t on a drill programme conducted within the Sunbeam Mine area. The drill programme was a follow up on a surface sampling programme which produced results up to 83.5g/t from underground waste rock from the Sunbeam mine. Eight drill holes totalling 1,091 metres were collared. Significant results include:
| Historic-Drill Hole | Assay-Comments/Observations |
| NS-21-01 | 3.98g/t Gold (Au) over 0.6m (from 96.0m) within 3.39m of strongly gold anomalous deformation zone. |
| NS-21-02 | 13.8g/t Au over 0.15m (from 80.85m) within 2.83m of strongly gold anomalous deformation zone. |
| NS-21-03 | 93.3g/t Au over 0.44m (from 99.5m) within 3.19m of strongly anomalous deformation zone. |
| NS-21-05 | 2.94g/t Au over 0.5m (from 118.5m) within 7.50m of strongly anomalous deformation zone. |
Table 2-Selected historic Sunbeam drill assays.
Further, three holes were drilled within 100m of the Pettigrew shafts. Hole 57751 intersected 19.4 g/t Au over 0.63m and 15.17 g/t over 1.37m in two zones separated by 15m.
In 2008, the Rubble occurrence was discovered on the property. Assays of up to 1.42 oz per ton gold have been obtained from pyritized and iron carbonate altered rocks.
A reinterpretation of the geophysics survey conducted by previous owners, Nuinsco is under way with Paterson Grant Watson (PGW).
North Hemlo & Esa
A third team is mobilising next week to continue the exploration at Esa, focusing on the anomalous soil sample results as well as the 0.7ppm boulder identified in the central eastern sector as detailed in the recent news release.
The team currently working on the McKellar diatreme will relocate to the North Hemlo project later this month. In order to bring the prospect to drill ready status, the intention is to follow up the encouraging sampling on the Dead Otter trend which has been sampled along its 3km plus length, which includes numerous gold occurrences up to 19.6 g/t Au. Over the winter months ninety-six lake sediment samples as well as a number of rock samples were collected from North Hemlo, results are pending.
Discussions are ongoing with drill companies to undertake a maiden drilling programme at Esa and or North Hemlo. To this end the Application for an Exploration permit to allow drilling is currently being reviewed by the First Nation groups with traditional lands covering Esa and North Hemlo.
Recon visits-Zigzag, Sugar Cube and Sunbeam
Reconnaissance trips have also been made to the Zigzag, Sugar Cube and Sunbeam properties to assess access. The intention at the Zigzag prospect is to undertake a field programme of sawn channel sampling to better quantify the strike length, width and tenor of the lithium and tantalum potential. The aim is to sample along the exposed outcrop of the pegmatite with sawn channels like at McKellar – equivalent to a horizontal drill hole.
Previous workers have identified Li₂O and Ta₂O5 mineralization along the entire length of the showing from sampling at surface, grading up to 1.68% Li₂O (Lithium Oxide) over 7.9m and 0.168% Ta₂O5 (Tantalum Oxide) over 2.54m in separate channels samples. Several shallow historic drill holes along the occurrence have returned significant intersections, including, (in separate drill holes) an intersection grading 1.08% Li₂O over 6.1m and a separate intersection of 399.8ppm Ta₂O5 over 2.92m. Both intersections were less than 20m down hole.
The occurrence is open along strike and depth and remains to be fully evaluated. It is anticipated that the channel sampling will allow a focused drill programme to be executed later in the season.
Field work at Sugar Cube will be to investigate – ground-truth- the potentially mineralised structures highlighted by the recently completed high resolution magnetic / electromagnetic (EM) survey.
Once the spring access is sufficiently advanced two teams will be deployed to Sunbeam; one will prospect the peripheral claims whilst the second team will focus on the mineralised trends containing the Sunbeam, Roy and Pettigrew mine shafts with the intention of determining drill targets for later in the season.
FCM is committed to exploring the properties currently under its control in order to add value and bring where warranted to a drill point.
For Further Information:
| James Knowles, Executive Chairman | JamesK@Firstclassmetalsplc.com | 07488 362641 |
| Marc J Sale, CEO | MarcS@Firstclassmetalsplc.com | 07711 093532 |
| Ayub Bodi, Executive Director | AyubB@Firstclassmetalsplc.com | 07860 598086 |
First Equity Limited
(Financial Adviser & Broker)
| Jonathan Brown | 0207 3742212 | |
| Jason Robertson | 0207 3742212 |
First Class Metals PLC – Background
First Class Metals is focussed on exploration in Ontario, Canada which is considered a top global destination for explorationwith a robust and thriving junior mineral exploration sector. Specifically, the Hemlo ‘camp’ is a proven world class address for gold/VMS exploration. This geological terrane has significant production, both base / precious metals and a prolific number ofexploration projects and numerous prospector’s ‘showings’.
FCM currently holds 100% ownership of seven claim blocks covering over 180km² along a 150km strike of the Hemlo-Schreiber-Dayohessarah greenstone belt which also contains the >23M oz shear hosted Hemlo gold mine operated by Barrick Gold. Late last year FCM completed the option to purchase the historical high grade (gold) Sunbeam.past producing mine
The significant potential of the properties for precious, base and battery metals relate to: ‘nearology’ insomuch that all properties lie close to identified mineral anomalism, for example Palladium One’s RJ and Smoke Lake nickel projects are close to the FCM’s West Pickle Lake drill proven Ni-Cu project. This also demonstrates the second critical asset the properties hold: vector, anomalies, be they geological, geochemical, or geophysical that have demonstrated mineral potential extend on to FCM’s properties.
The inferred shear on the Esa property is being explored by neighbours both to the west and east where it crosses into their properties. Furthermore, the properties have not been extensively explored either historically or more contemporaneously . This is attributable to the overall lack of outcrop. However, modern exploration techniques are better able to ‘see through’ the ground cover and to identify anomalies.
Forward Looking Statements
Certain statements in this announcement may contain forward-looking statements which are based on the Company’s expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. Such forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘aim’, ‘anticipate’, ‘target’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, or other words of similar meaning. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise
#FCM First Class Metals PLC – Zigzag Lithium Property Earn-In & Issue of Equity
First Class Metals PLC (“First Class Metals” “FCM” or the “Company”) the UK metals exploration company seeking large scale metal discoveries across its extensive Canadian Schreiber-Hemlo & Sunbeam land holding is pleased to announce that it has signed an agreement with Nuinsco Resources Limited in respect to the Zigzag lithium project in Ontario.
Highlights:
· Historic grades at surface up to 1.68% lithium (Li20) over 7.9m and 0.168% tantalum (Ta205) over 2.54m. The claim group covers the historic Tebishogeshik occurrence as well as other mineralised occurrences.
· The pegmatite hosting the deposit is reported to be more than 800m in length and 20m thick at surface.
· Sampling by Nuinsco returned strongly anomalous lithium, tantalum, and rubidium, peaking at 3.55% Li20 with significant tantalum, and rubidium results at 836 ppm Ta₂O5, and 4,003 ppm Rubidium Rb₂2O.
· Exploration Permit already in place, allowing for exploration activities which may include stripping, trenching, and drilling.
· Property located 10.5km from the Green Technology Metals Limited (ASX: GT1) Seymour Project and several other hard rock lithium properties. Close to nearby current and future planned key infrastructure.
· Signing completes the process outlined in the ‘Exclusivity Agreement’ announced on the 112th of December 2022 for the ‘Lithium property Earn In’. The project funding was also announced in the same news release, James Goozee a High Net Worth Individual (“HNWI”) lithium/battery metals focussed investor took the full £300,000 private subscription at 16p per share.
1https://polaris.brighterir.com/public/first_class_metals/news/rns/story/r790kzx
Figure 1–ZigZag Lake pegmatite (grey) with very coarse gained lithium bearing spodumene crystals (pale green), for scale the business card 3″x2″.
The project is less than 100km from Armstrong in northwest Ontario in the Seymour Lake area, a district already proved to be prospective for hard rock, pegmatite hosted lithium. Existing infrastructure currently in place in the local area is expected to be further bolstered in the future by the planned Jackfish Hydro project and a Spodumene Process Plant at the Green Technology Metals, Seymour site which is just over 10km away.
The six unit claim group includes a mapped structure of 800m which (Tebishogeshik occurrence) and is wholly contained within the claim block, the lithium-tantalum mineralization is pegmatite-hosted with significant rubidium and cesium mineralization also reported. See figure 2. All of which are ‘critical minerals’ as identified by the 2Canadian and United Kingdom Governments.
Previous workers of the Tebishogeshik occurrence have identified Li2O and Ta2O5 mineralization along the entire length of the showing from sampling at surface, grading up to 1.68% Li2O over 7.9m and 0.168% Ta2O5 over 2.54m in separate channels samples. Several shallow historic drill holes along the occurrence have returned significant intersections, including, (in separate drill holes) an intersection grading 1.08% Li2O over 6.1m and a separate intersection of 399.8ppm Ta2O5 over 2.92m. Both intersections were less than 20m down hole. The structure is open along strike and to depth and remains to be fully evaluated.
Lithium-ion battery production capacity pipeline globally to 2030 increases up to 8.1 TWh and North American EV battery production is forecast to reach 1 TWh annually by 2030. Even if production from known current assets were to double against planned capacities, expected North American demand alone would exceed supply by 40%.
Figure 2-Zigzag Claim Block geology with main known Lithium Pegmatite’s mapped.
Terms of the deal:
The deals is structured so that FCM has an option to earn-in up to an 80% interest over the exclusive option held by Nuinsco Resources over the Zigzag mining claims. The payments for the exercise of this option include a cash component of $CAD500,000 and a share component of $CAD250,000 in FCM Ordinary Shares spread across approximately 3.5 years. Additionally, FCM has committed to undertake exploration related expenses on the property over the same period to a value of $CAD550,000.
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Table 1 Zigzag Option Schedule |
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Cash (CAD$) |
Ordinary FCM Shares (CAD$) |
Annual Work Commitment (CAD$) |
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On Signing |
50,000 |
25,000 |
0.00 |
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June 01, 2023 |
75,000 |
30,000 |
50,000 |
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June 01, 2024 |
100,000 |
50,000 |
100,000 |
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June 01, 2025 |
125,000 |
60,000 |
150,000 |
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June 01, 2026 |
150,000 |
85,000 |
250,000 |
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Total |
500,000 |
250,000 |
550,000 |
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These payments and work commitments maybe accelerated at FCM’s option. Upon completion, the Zigzag mining claims will be owned by FCM and Nuinsco on an 80:20 basis and the parties will have deemed to enter a joint venture for the development of these mining claims. Should either party not wish to contribute to this joint venture a standard industry dilution clause shall apply. If either party dilutes to a 10% ownership interest or lower, their entire interest will automatically convert into a NSR royalty payment, and the other party shall be the 100% owner of the Zigzag mining claims. Additionally, half of such NSR royalty payment may be purchased by the other party by paying a sum of $CAD 750,000.
Figure 3 the Zigzag property is in a very prospective exploration proven lithium rich belt.
Issue of Equity
350,000 new ordinary shares are being issued to cover elements of the Nuinsco Share Payments and professional fees incurred, they will rank pari passu with the Company’s existing issued ordinary shares. The Company intends to allot and issue these new ordinary shares under its existing authorities on a non-pre-emptive basis.
The Company will be making its application to admit the new ordinary shares to the Official List of the FCA and to trading on the Main Market (Standard List) of the LSE. Admission is expected to occur on the 16th of March 2023.
Conditional on Admission, the Company’s issued ordinary share capital will be 70,794,589 ordinary shares, which may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules.
Marc Sale CEO commented:
“FCM is very enthused with the opportunity to have executed the agreement on this very prospective lithium prospect. FCM has now significantly augmented their portfolio of critical minerals within our exploration focus. Given the worldwide shift toward greener and cleaner economies, the acquisition of additional property assets such as Zigzag Lake is a strategic progression for FCM.“
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 |
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Ayub Bodi, Executive Director |
07860 598086 |
First Equity Limited
(Financial Adviser & Broker)
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Jonathan Brown |
0207 3742212 |
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Jason Robertson |
0207 3742212 |