Tag Archives: onGold

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

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: 

Novum Securities Limited

(Financial Adviser)