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First Class Metals #FCM – Update on REE Potential of the McKellar Property
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 land holding is pleased to provide an update on exploration activities in respect to the Rare Earth Elements (“REE”) potential of the McKellar claim block.
Highlights
-Historical data review of the REE potential of the McKellar property and commencement of prospecting on the McKellar Creek Diatreme
McKellar
FCM is pleased to announce that exploration of the McKellar diatreme has been initiated and rock samples have been collected for assay.
The McKellar property, comprising 58 claims covers 11km² is and it is situated in prime geological terrain within the Coldwell complex. Located to the west of the Generation Mining’s Palladium Project, McKellar is roughly 25 kilometres from the town of Marathon, the main service centre for Barrick’s Hemlo mine.
The property contains known ‘showings’ (“samples”) for gold, silver, and base metals as well as a diatreme with reported anomalous REE.
Historical exploration on the property includes not only the diatreme but other significant occurrences, such as the drill hole on the Gold Bar Lake prospect reporting over 1% Cu, 6% Zn as well as 0.5g/t Au and 60g/t Ag. Elsewhere on the property samples of 6,419ppm Mo (molybdenum) and 4,400ppm Zn (Zinc) are reported. Whilst the small scale historic Little Pic silver mine produced ‘ore’ containing in various samples 618g/t Ag and over 7% Pb and 32% Zn, see Figure 1.
There are also a significant number of showings within the vicinity of the McKellar property, including the Prairie River West showing which returned 1.13g/t Au and 45g/t Ag, as well as the Marhill Prospect to the west with values up to 18.5g/t Ag. Importantly these showings are hosted in the mafic to intermediate metavolcanics which are identified in the western extension of the property: nearology and vector.
Although it is primarily the high precious and base metal values in the historic showings that makes McKellar stand out, the presence of a relatively underexplored rare earth hosting diatreme in the south of the property has potential significance implications.
The diatreme occupies a topographic low and occurs within a north trending linear stricture. The breccia may have been emplaced within a shear or fault zone, however, geologic data supporting this possibility are lacking.
Historically general prospecting, geological mapping and rock sampling of the diatreme was focussed on discerning whether gold, platinum and palladium were associated with the diatreme structure and what REE the diatreme carried.
In 2013 prospecting, geological mapping and rock sampling of the diatreme was performed by Russel Renner, 5 bedrock grab samples were taken and assayed, results of which and other assayed samples from the diatreme area are included in the table below.
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Historical assay results for selected elements (including REE’s), McKellar Creek Diatreme: |
Value |
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Gold Au |
25 ppb |
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Platinum Pt |
17 ppb |
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Neodymium Nd |
300 ppm |
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Lanthanum La |
400 ppm |
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Beryllium Be |
2.8 ppm |
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Cerium Ce |
513 ppm |
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Yttrium Y |
214 ppm |
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Strontium Sr |
1280 ppm |
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Thorium Th |
180 ppm |
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U308 |
38 ppm |
In his 2013 assessment report1, Renner suggested that if interest in REE was to increase, and the Prairie Lake intrusion and Dead Horse Lake diatremes were to come back into the limelight and create enthusiasm for the area, then the McKellar Creek diatreme would certainly have some potential to become part of the revived interest in REE in the Coldwell area.
FCM mobilised a field crew to explore as a ‘first pass’ review of the McKellar diatreme area with the intention of identifying and re sampling the outcrop,. During a brief campaign the team collected 10 rock samples, of which 9 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 south west.. The photo (Figure 2) indicates early success in the reconnaissance with distinct diatreme breccia being encountered and sampled.
Figure 2-Diatreme Breccia sampled from the McKellar Diatreme
Marc J. Sale CEO First Class Metals said “this month we have returned field crews to the projects after a brief hiatus, I am particularly pleased we have started to explore the REE potential at McKellar. The Autumn campaign generally plans to build on the visual encouragement and preliminary assay results from samples collected in the first pass across our properties earlier this year. Work completed to date on key properties has given us increased confidence to push forward with further exploration, vectoring us in to now what are becoming priority targets”.
For further information, please contact:
First Class Metals PLC
James Knowles, Executive Chairman 07488 362641
Marc Sale, Chief Executive Officer 07711 093532
MarcS@FirstClassMetalsPlc.com
Ayub Bodi, Executive Director 07860 598086
First Equity Limited (Financial Adviser & Broker) 020 7374 2212
Jonathan Brown
Jason Robertson
NOTES TO EDITORS
First Class Metals PLC – Background
First Class Metals is focussed on exploration in Ontario, Canada which is considered a top global destination forexploration with a robust and thriving junior mineral exploration sector. Specifically, the Hemlo ‘camp’ is a proven worldclass address for gold /VMS exploration. This geological terrane has significant production, both base / precious metalsand a prolific number of exploration projects and numerous prospector’s ‘showings’.
FCM 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.
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 soil / VTEM anomaly. 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 predominantly attributable to the overall lack of outcrop. However, modern exploration techniques are better able to ‘see through’ the ground cover and to identify anomalies.
Power Metal Resources #POW Completes Sale of Schreiber-Hemlo Interests to First Class Metals Ltd, which plans to list in London in Q4 2021
Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces completion of the sale of its Schreiber-Hemlo project interests located in Ontario, Canada, to First Class Metals Ltd (“First Class” or “FCM”).
The terms of the transaction were agreed on 07/09/21 and the related announcement may be viewed through the link below:
https://www.londonstockexchange.com/news-article/POW/sale-of-schreiber-hemlo-interests/15125039
Power Metal has arranged for the transfer of Schreiber-Hemlo claims held by its wholly-owned Canadian subsidiary Power Metal Resources Canada Inc (“Power Metal Canada”) to FCM’s wholly owned Canadian subsidiary.
Power Metal Canada has been issued with 333,334 FCM shares at a price of £3 per share for total consideration of £1 million.
Power Metal has also now subscribed for 9,588 shares in the pre-IPO financing of FCM at £3 per FCM share. The total subscription value of £28,764 has been paid to FCM.
Power Metal now has an interest in 342,922 FCM shares representing circa 36.1% of FCM after allowance for the pre-IPO fundraise shares issued by FCM.
Latest updates on FCM’s progress may be viewed through the FCM website and the following link:
https://www.firstclassmetalsplc.com/mining-news
Whilst it is the intention of FCM to pursue a listing on a recognised stock exchange in London targeted for late 2021, there is no guarantee that the IPO of FCM will proceed, whether it will be able to raise additional equity funding or at what price it will issue new shares to potential investors.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“Completion of this transaction sees Power Metal hold a significant interest in FCM, and we look forward to FCM’s progress with exploration and corporate activities in the weeks and months ahead.
Notably we look forward to the planned listing of FCM on the London capital markets and the value generative opportunity this could present for Power Metal.
This is the first completed corporate disposal/spin-out event for the Company, with a number of other potential spin-out transactions currently in progress.
The Power Metal business is focused on exploration to secure major metal discoveries, however our corporate disposal/spin-out developments have the potential to dramatically build our working capital and provide considerable financial backing to our significant exploration ambitions across the portfolio.”
ABOUT FIRST CLASS METALS
First Class Metals Limited i s a minerals exploration company focused on proving and developing the significant potential of their flagship property North Hemlo as well as systematic exploration of the Esa, Sugar Cube, McKellar, Magical, Enable and Coco East projects, totalling 176km² in the Hemlo – Harte gold mines region in the Western portion of the Wawa-Abitibi Gold Belt of Ontario, Canada
Geologically the claim blocks are located within the Schreiber-Hemlo Greenstone Belt with target minerals gold, silver, base and battery metals in typical Archaean / Hemlo style mineralised settings.
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 company which finances and manages global resource projects and is seeking large scale metal discoveries.
The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious and base metal exploration in North America, Africa and Australia.
Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.
Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.
Value generated through disposals will be deployed internally to drive the Company’s growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.
Power Metal Resources #POW – Investee Update – First Class Metals
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio notes the Business Update released this morning by First Class Metals Limited (“First Class”).
The Business Update covers the following areas:
- Expansion of flagship Hemlo North Project
- Launch of key technical study
- Positive IPO progress
- Next steps
This announcement, and future communications from First Class, may be viewed on their website through the following link:
https://www.firstclassmetalsplc.com/mining-news
Power Metal sold its Schreiber-Hemlo interests in Ontario, Canada to First Class on 7.9.21 for £1million in First Class shares the announcement in respect of which may be viewed through the following link:
https://www.londonstockexchange.com/news-article/POW/sale-of-schreiber-hemlo-interests/15125039
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 company which finances and manages global resource projects and is seeking large scale metal discoveries.
The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious and base metal exploration in North America, Africa and Australia.
Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.
Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.
Value generated through disposals will be deployed internally to drive the Company’s growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.
Power Metal Resources #POW – Interim Results for 6 months ended 31 March 2021
Power Metal Resources plc the AIM listed metals exploration and development company is pleased to announce its unaudited interim results for the six months ended 31 March 2021.
Statement by Paul Johnson, Chief Executive Officer:
“In the six months ended 31 March 2021 we have pushed the Power Metal business to explore extensively across its project portfolio with, in our view, some excellent and very fortunate findings. We are seeking large scale metal discoveries with the emphasis on plural as we believe our portfolio is capable of delivering a number of discoveries.
Junior resource exploration is a high-risk endeavour, so investors in Power Metal rightly expect the potential for outsized returns that come with discoveries and to achieve them requires proactivity and investment in exploration.
Since October 2020 we have invested in exploration work in every single project we hold an interest in including three separate drill programmes across interests in Botswana, Canada and Tanzania. There are more planned drill campaigns in the coming months.
Notable exploration successes announced to date include the identification of extensive anomalies from the Kalahari Copper Belt, Botswana (held in JV with Kavango Resources plc), significant nickel drill intersections from Molopo Farms Complex Project, Botswana, and bonanza grade silver from the Silver Peak Project, Canada. These are by no means the only successes and as noted above we have been very fortunate with early exploration success across our portfolio.
Notwithstanding the exploration progress being made, and our search for large scale metal discoveries, we are also running a commercial enterprise that has to balance the books and generate working capital to fund its operations.
We recognise the value of the London capital markets providing access to additional finance and that is one of the principal reasons junior resource companies list. That said we are also looking to build our working capital organically through targeted growth in our investment portfolio and the spin-out of certain projects into their own listed vehicles.
Financial strength for a junior exploration company is important and as at 21 May 2021 Power Metal had working capital of circa £2.57 million, representing cash and listed company investments. This robust working capital figure was notwithstanding the material expenditure on exploration and corporate development in the half year ended 31 March 2021.
We seek size and scale in our business through metal discoveries in district scale exploration and innovative corporate activity. To do this we have recognised the need to build our operational team and now have an in-house Exploration Manager, Investor Relations Manager and Corporate Spin-Out Management. The expanded team is intensively engaged on delivering growth in our business through our project portfolio.
I would like to thank the board and Power Metal team for their determined dedication to our business objectives. The support we receive from our advisor network continues to be first rate and needs to be as Power Metal is a proactive company.
As always, and never to be left unsaid, I thank our shareholders for their support and commitment to the Power Metal business and its ambitions. It is easy to be ordinary, yet we have no such desire, and with the support of our shareholders we aim to make Power Metal a stand-out performer demonstrating how an ambitious, determined junior resource company can deliver.”
Power Metal Interests at today’s date:
|
Country |
POW % |
Project |
Resources Targeted |
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Australia |
49.9% |
Victoria Goldfields |
Gold |
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Australia |
75%(1) |
Paterson Province |
Copper – Gold |
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Botswana |
50.8%(2) |
Molopo Farms Complex |
Nickel – Copper – Platinum Group Metals (PGMs) |
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Botswana |
50% |
Kalahari Copper Belt |
Copper – Silver |
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Botswana |
50% |
Ditau Camp |
Rare Earth Elements |
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Canada |
30% |
Silver Peak |
Silver |
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Canada |
100% |
Schreiber-Hemlo Projects |
Gold – Nickel |
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The DRC |
70% |
Kisinka |
Copper – Cobalt |
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Tanzania |
35% |
Haneti |
Nickel – Copper – PGMs – Gold – Lithium |
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USA |
Earn-in up to 75% |
Alamo Gold |
Gold |
(1) Conditional agreement to acquire First Development Resources (Pty) Ltd.
(2) 50.8% reflects effective economic interest including 40% direct project interest and 10.8% indirect interest through shareholding in project holding company Kalahari Key Mineral Exploration Pty Ltd
Operational Highlights
In the Half Year to 31 March 2021:
Australia
· Further development of the Australian Gold Joint Venture focused on the Victoria Goldfields including notably the grant of the first three exploration licences announced in February 2021, a further two licences in March 2021 and the commencement of ground exploration across the granted licence ground.
· Option Agreement announced in January 2021 to acquire First Development Resources Pty Limited with interests in two copper-gold properties in the Paterson Province Eastern Pilbara, Western Australia. (Note this Agreement was subsequently superseded in April 2021 as outlined below).
Botswana
· Drilling commenced in October 2020 at the Molopo Farms Complex Project in Botswana with a 2,500m diamond drill programme targeting nickel sulphide and platinum group metal (“PGM”). By half year end 3 holes were complete with results sent for assay testing. Mineralogical studies confirmed the presence of nickel sulphides in drill core.
· Exploration work undertaken across the Botswana Joint Venture with Kavango Resources plc (LON:KAV) at the South Ghanzi (Kalahari Copper Belt), targeting copper-silver and the Ditau Project, targeting rare earth elements.
Canada
· A 500m diamond drill programme was launched in October 2020 at the Silver Peak Project in British Colombia, Canada, but access challenges and weather conditions led to a change in plans with a man-portable drill rig being used instead to undertake a shortened drill programme. Results announced December 2020 showed high grade silver and demonstrated mineralised vein continuity, with the full drilling programme planned to recommence in 2021.
· Acquisition of 7 exploration properties in the Schreiber-Hemlo region of Ontario.
The Democratic Republic of the Congo (The DRC)
· High grade copper and cobalt values announced November 2020 from assay testing on the 2020 pitting, mapping and sampling undertaken at the Kisinka Project in the DRC, which led to the commencement of ground geophysics in December 2020 to delineate targets for drilling.
Tanzania
· A rotary air blast drill programme commenced in December 2020 at the Haneti Nickel Project, held in joint venture with Katoro Gold plc (LON:KAT), to provide information leading into a subsequent planned diamond drill programme targeting nickel sulphide and Platinum Group Metals.
USA
· Exploration fieldwork undertaken at the Alamo Gold Project in Arizona USA, as announced in December 2020.
After 31 March 2021:
· The Rotary Air Blast drilling programme results from the Haneti Nickel PGM Project were announced in April 2021 and confirmed the move to deep diamond drilling;
· Assay results released in April 2021 from hole K1-6 at the Molopo Farms Complex Project in Botswana, confirming significant nickel intersections and later that month the Company confirmed the completion of its earn-in to a 40% direct project interest;
· Extensive exploration work continued at the Australian Gold Joint Venture in the Victoria Goldfields granted licences and a further update covering this was provided in April 2021, together with confirmation of a further two licence grants later that month;
· A conditional acquisition of First Development Resources Pty Limited was announced in April 2021, with a revised acquisition structure and now including 5 licence interests in the Paterson Province, East Pilbara, Western Australia;
· The Company announced the creation of a new resource project incubator subsidiary in May 2021, Power Capital Investments Limited;
· In May 2021, the Company announced the Kisinka Project in the DRC saw prominent magnetic highs identified from ground geophysics, and an intention to drill at Kisinka following completion of preparatory exploration work. In addition, confirmation was received that the project had been awarded a 25-year Production Licence;
· An Option agreement was announced in May 2021 allowing for the acquisition of a 100% interest in two exploration licences in the Tati Greenstone Belt, Botswana, targeting gold and nickel;
· In May 2021 positive findings were announced from the South Ghanzi Project in the Kalahari Copper Belt, Botswana, with extensive anomalies identified including 7 airborne electromagnetic targets for follow up geochemical sampling and drill testing; and
· As at 21 May 2021, Power Metal’s working capital comprising cash and listed investments amounted to circa £2.57 million, providing a robust underlying financial position for ongoing operations.
Financial Highlights for the Half Year Ended 31 March 2021:
· Loss for the period, attributable to owners of the parent of £0.59 million (2020: £0.24 million), resulting in a loss per share of 0.07 pence (2020: 0.05 pence);
· Warrant exercises during the period raised £2,692,474 for the Company; and
· Net assets of £4.6 million at the period end (30 September 2020: £2.4 million).
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 POW 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 |
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Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale discovery of precious or base metals.
The Company has a global portfolio of project interests including precious and base metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage prospects currently subject to 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.
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 Options – Magical and Enable Properties
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 both the Magical Property (“Magical”) and Enable Property (“Enable” together the “Properties”) located on the prospective Schreiber-Hemlo Greenstone Belt in north-western Ontario, Canada.
These are the final two of four gold exploration properties upon which the Company signed an exclusive option to acquire a 100% interest (as announced 26 January 2021) and follows the McKellar option exercise and the Coco East option exercise which were announced on 18th and 24th February 2021 respectively.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“The exercise of our options over the Magical and Enable properties concludes Power Metals’ current acquisition strategy over the Schreiber-Hemlo Greenstone Belt in Ontario. Power’s portfolio of exploration properties provides us the opportunity to build value, within a 120km strike length, of a prolific exploration belt.
We will now commence a phase of desk-based remote sensing targeting and exploration planning with a view to being in a position to initiate ground reconnaissance and target follow-up work after the snow thaw. We look forward to providing further updates as plans progress.”
MAGICAL PROPERTY OVERVIEW
– Magical is located 9km northwest of Barrick Gold Corporation’s Hemlo Mine which has produced more than 21Moz gold and has been operating continuously for more than 30 years1.
– The property is located upon the North Limb of the Schreiber-Hemlo Greenstone Belt, the property is located at the prospective contact between the intrusive Gowan Lake Pluton and metavolcanic/metasedimentary rock packages, with a similar geological setting to the Hemlo deposit. Magical offers potential for orogenic style gold mineralisation.
– The regional geophysics data shows a north trending regional scale magnetic structure intersects the intrusion within the centre of the property, defining a preliminary target for investigation.
– Magical 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.
– Magical directly abuts and covers the westward strike extension of the Canadian listed junior Hemlo Explorers Inc (TSX-V: HMLO) North Limb Property2 .
MAGICAL CLAIM STATUS
– The Magical property consists of a total of 14 Single Cell Mining Claims (“Claims”) covering an area of circa 3.0km2.
– Claims are valid through to 27 July 2022 upon which they can be renewed on an annual basis. For renewal the Magical Claims will require an aggregate work spend of CAD$5,600 (circa £3,145) prior to the individual Claim renewal dates.
ENABLE PROPERTY OVERVIEW
– The Enable property is located on the western part of the Schreiber-Hemlo Greenstone Belt, at the contact of metavolcanic and volcano-sedimentary rock packages with the Terrace Bay Batholith.
– On a regional scale the Terrace Bay Batholith contact is spatially associated with at least 28 documented gold showings including the Northshore Property which has historical resources of 1.2Moz Au3. Northshore has recently been subject to open pit mining studies and is currently held by Canadian Securities Exchange listed Ready Set Gold Corp. (CSE:RDY).
– Overburden cover has been attributed to the reason the Enable portion of the batholith contact remains unexplored. This presents an opportunity to discover new gold mineralisation utilising modern exploration technologies.
– Access to the property is good, being 4km north of the town and railway stop of Terrace Bay and with the Trans-Canada Highway running within 200m of the eastern boundary. The centre of the property is crossed by a public highway with logging roads and a lake providing access to the western part of the property.
ENABLE CLAIM STATUS
– The Enable property consists of a total of 41 Claims covering an area of circa 8.7km2.
– Claims are valid through to 25 July 2022 upon which they can be renewed on an annual basis. For renewal the Enable Claims will require an aggregate work spend of CAD$16,400 (circa £9,210) prior to the individual Claim renewal dates.
ACQUISITION TERMS
The vendors of the Option (the “Vendors”) are a consortium led by established local prospector Brian Fowler who was the Vendor of the Hemlo North Gold Project acquired by Power Metal as announced on 21 January 2021.
In exercising the Option to acquire a 100% interest in the Magical and Enable properties POW will make the following cash and equity consideration:
|
Property Name |
Cash (CAD$) |
POW Shares (CAD$) |
Note: POW Acquisition Shares to be issued |
Total Consideration (CAD$) |
|
Magical |
20,000 |
20,000 |
384,000 |
40,000 |
|
Enable |
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 each property, Power Metal may purchase 1% of each 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 the properties.
– 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 4 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 1,136,877,930 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: Barrick Gold Corporation, Hemlo Project webpage: https://www.barrick.com/English/operations/hemlo/default.aspx
2: Hemlo Explorers Inc (TSX-V: HMLO) North Limb Property webpage: https://hemloexplorers.ca/projects/hemlo-north-limb/overview/
3: Mineral resource estimate: Technical Report on the Mineral Resources of the Northshore Property, Thunder Bay Mining Division, Priske Township, Ontario, Canada with an effective date of 28 April 2014, by Giroux Consultants Ltd. and Minorex Consulting Limited.
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 – 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$12,000 (circa £6,912) prior to the individual Claim renewal dates.
ACQUISITION TERMS
The vendors of the Option (the “Vendors”) are a consortium led by established local prospector Brian Fowler who was the Vendor of the Hemlo North Gold Project acquired by Power Metal as announced on 21 January 2021.
In exercising the Option to acquire a 100% interest in the Coco East Property POW will make the following cash and equity consideration:
|
Property Name |
Cash (CAD$) |
POW Shares (CAD$) |
Note: POW Acquisition Shares to be issued |
Total Consideration (CAD$) |
|
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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|
|
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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) |
|
|
Nick Emerson |
+44 (0) 1483 413 500 |
|
|
|
|
First Equity Limited (Joint Broker) |
|
|
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.