REG - First Class Metals - Accelerated Exploration at North Hemlo

FIRST CLASS METALSAnnouncement

24/07/2024 07:00

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RNS Number : 5525X  First Class Metals PLC  24 July 2024

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

FIRST CLASS METALS PLC

24 July 2024

Accelerated Exploration at 3.7km Gold Trend in North Hemlo

 

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
strategic exploration footprint in Ontario, Canada is pleased to provide an
exploration update.

Following a detailed technical review, the Company has upgraded the Dead Otter
trend ("Dead Otter") within its 100% owned North Hemlo Property to high
profile target status and has immediately launched the next stage and a
potentially significant impact exploration programme.

Historic Dead Otter Exploration Highlights included:

·    The Company has confirmed the presence of a discontinuous 3.7km long
gold trend at Dead Otter (open along strike so potentially larger) in the
south of the North Hemlo Property which is located 23km north of Barrick's
Hemlo (1)23 million ounce gold ("Au") mine (see Figure 1 below).

 

·    The structure forming the Dead Otter trend is considered to be
subparallel to a district scale structure identified in the magnetics that has
similarities to the structure hosting the Barrick Hemlo gold mine.

( )

·    Visible gold has been observed in multiple grab samples from the Dead
Otter trend, a grab sample reported 19.6g/t gold (Au) with a 13.6g/t gold
sample in the near vicinity.

 

·    Gold has been 'panned' from pulverised grabs taken from the
structure.

 

·    An Exploration Permit covering the 3.7km gold trend at Dead Otter
was granted in November 2023 and is valid for three years. The permit allows
mechanical stripping and diamond core drilling, and a drilling operator has
successfully reviewed site logistics and access for a diamond drill rig.

Next Exploration Programme Highlights:

 

·    As outlined above previous exploration results were considered by the
Company's technical team to be particularly significant due to the robust
structure, tenure of gold reported and similarities to other mineralisation in
the area. Therefore, the decision was taken to accelerate exploration work at
Dead Otter which is further outlined below.

 

·    Emerald Geological Services ('EGS'), has been commissioned to conduct
a stripping and channel sampling across several high priority targets along
the Dead Otter Trend, which will provide crucial information to vector-in
drilling at this key target zone.

 

·    The EGS crew is now onsite, and access for stripping has started
which will focus in particular on the area where previous exploration yielded
gold sampling assay grades up to 19.6g/t.

 

·    The Company believes that this work programme will be the last
exploration step that should be required for delineation of drill targets. The
entire field programme is expected to take approximately four weeks to
complete and further information will be provided to the market as soon as
practicable.

 

·    In addition, selected samples from historical work demonstrating the
potential for 'coarse gold' at Dead Otter, have been submitted to the
laboratory for re-assay.

 

Marc J. Sale CEO First Class Metals Commented:

"The continued exploration work on the Dead Otter trend is potentially
transformational insomuch that positive results have the ability to catapult
the structure along the Dead Otter Trend into 'new discovery' status.

The North Hemlo property and its gold endowment forms the spearhead of our
current exploration campaign.

Sawn channels, the work we are proposing, are comparable to horizontal drill
holes and can be utilised in resource calculations. The work is exciting as it
could significantly elevate the importance of this substantial gold bearing
structure which is now one of the high-profile targets within the Company's
portfolio of strategic exploration interests."

 

North Hemlo Exploration Progress:

A field team, working from Manitouwadge, is focussed on the Dead Otter Trend.
Past exploration by FCM was focussed at the historic showing which reported
3.1 g/t gold (Au) and 0.59% molybdenum (Mo), reconnaissance subsequently
identified the extension of the trend to the south east where, over 3km along
strike a 19.6ppm Au sample was reported, this is thought to be the highest
grab samples recorded in the north limb.

The structure forming the Dead Otter trend is considered to be subparallel to
a district scale structure identified in the magnetics that has similarities
to the structure hosting the Barrick Hemlo gold mine, see Figure 1.
Furthermore, the Dead Otter showing contains significant molybdenum, also a
characteristic of the Hemlo mineralisation.

Figure 1 showing the district setting with the vast Barrick Hemlo gold mine on
the south limb and the Dead Otter trend on FCM's 100% owned property
containing the high grade '19 grammer' location.

Further exploration validated this high-grade sample as well as identifying
other outcrop along strike that reported multi gramme gold values. Whilst the
trend is not currently considered continuous as the outcrop is intermittent,
the geological structure, based on the geophysics and topographic evidence is
considered robust. The structure occupies the contact between the mafic
volcanic succession and the Dotted Lake pluton. Pathfinder elements such as
arsenic and antimony indicates the trend is anomalous along the known outcrop,
giving further support to the robust nature of the structure and its potential
to contain additional gold occurrences.

The current work: 'stripping' off of the vegetation to reveal the underlying
outcrop will focus on the Dead Otter showing, the '19 grammer' then possibly
two other locations along the strike, see Figure 2

Figure 2 showing the multiple multi-gramme gold assays as well as the historic
Dead Otter showing. Also note the proposed areas for stripping.

The Company's stated objective in the 2023 field season to advance the Dead
Otter Trend to drill ready status the stripping now taking place at several
points along the 'trend' will define actual drill locations.

There is compelling evidence to suggest that there is a coarse gold issue
across predominantly the norther sector of the Dead Otter Trend. All grab
samples collected specifically along the favourable 'horizon' in the area of
the old showing were scrutinised for visible gold. A similar exercise was
undertaken in the 19 gramme sector, see Figure 3

Figure 3 showing the location of the 19.6g/t sample in the southeast of the
Dead Otter trend.

Gold has been sighted in several samples, see Figure 4. These samples
subsequently did not report significant gold values in the Fire Assay, further
suggesting a coarse gold issue.

Figure 4-Visible gold in a second sample in a photomicrograph of rock from the
Dead Otter Trend

Furthermore, rock samples collected randomly from the areas of sampling were
'dollied' then panned-off. A number of gold flecks were seen in the 'tail' in
the panning dish This is significant in not only proving the presence of gold
in the Dead Otter Trend but also signifies that there is coarse gold in the
system, the gold one would assume therefore is 'free-milling'.

FCM has now submitted a selection of samples to the laboratory and the whole
residue, up to 500g will be analysed.

FCM believes that the Dead Otter trend represents one of the most exciting
recent discoveries in the Hemlo area. Not only is there a robust structure
that has had little systematic exploration historically, but the work also
completed to date by FCM continues to increase its potential. Whilst the
coarse gold is an issue for evaluation, the basic scenario of a gold bearing
structure of several kilometres strike extent is valid. Furthermore, it has
never been drilled. The stripping currently underway and channel sampling to
follow has the focus to define drill targets / coordinates as well and
confirming the validity of the Dead Otter system.

 

(1) Barrick Gold Corporation - Operations - Hemlo
(https://www.barrick.com/English/operations/hemlo/default.aspx)

 

For Further Information:

For further information, please contact:

 

 James Knowles, Executive Chair  JamesK@Firstclassmetalsplc.com (mailto:JamesK@Firstclassmetalsplc.com)  07488 362641
 Marc J Sale, CEO                MarcS@Firstclassmetalsplc.com (mailto:MarcS@Firstclassmetalsplc.com)    07711 093532

Novum Securities Limited

 

(Financial Adviser)

 

 David Coffman/ George Duxberry   www.novumsecurities.com   (0)20 7399 9400

 

 

NOTES TO EDITORS

First Class Metals PLC - Background

First Class Metals listed on the LSE in July 2022 and is focused on metals
exploration in Ontario, Canada which has a robust and thriving junior mineral
exploration sector. In particular, the Hemlo 'camp' near Marathon, Ontario is
a proven world class address for gold exploration, featuring the Hemlo gold
deposit operated by Barrick Gold (>23M oz gold produced), with the past
producing Geco and Winston Lake base metal deposits also situated in the
region.

FCM currently holds 100% ownership of seven claim blocks covering over 180km²
along a 150km strike of the Hemlo-Schreiber-Dayohessarah greenstone belt,
exploring for gold, base metals, and rare earth element mineralization. In
addition, FCM is carrying out a joint venture with Palladium One on the West
Pickle Lake Property in the region, a drill-proven ultra-high-grade Ni-Cu
project.

The flagship property North Hemlo had a high-definition low level magnetic
Heli-borne survey flown in April 2022, this was followed with ground
prospecting which ultimately defined the 'Dead Otter Trend' which is a
discontinuous 4.5km gold anomalous trend with a 19.6g/t Au peak grab sample.
This sampling being the highest known assay ever recorded on the North Limb of
Hemlo.

In October 2022 FCM completed the option to purchase the historical high-grade
past-producing Sunbeam gold mine near Atikokan, Ontario, ~15 km southeast of
Agnico Eagle's Hammond Reef gold deposit (3.3 Moz of open pit probable gold
reserves).

FCM acquired the Zigzag Project near Armstrong, Ontario in March 2023. The
property features Li-Ta-bearing pegmatites in the same belt as Green
Technology Metals' Seymour Lake Project, which contains a Mineral Resource
estimate of 9.9 Mt @ 1.04% Li2O. Zigzag was drilled prior to Christmas 2023
and results have now been released.

The significant potential of the properties for precious, base and battery
metals relates to 'nearology', since all properties lie in the same districts
as known deposits (Hemlo, Hammond Reef, Seymour Lake), and either contain
known showings, geochemical or geophysical anomalies, or favourable structures
along strike from known showings (e.g. the Esa project, with an inferred
Hemlo-style shear along strike from known gold occurrences).

 

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.

 

 

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