REG - First Class Metals - Kerrs Gold Property Earn-In Agreement Signed

FIRST CLASS METALSAnnouncement

22/04/2024 07:00

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RNS Number : 4170L  First Class Metals PLC  22 April 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

22 April 2024

Kerrs Gold Property Earn-In Agreement Signed

 

First Class Metals PLC ("First Class Metals" "FCM" or the "Company") the UK
listed metals exploration company seeking economic metal discoveries across
its extensive Canadian, focused in north west Ontario land holdings, is
pleased to announce the signing of the Kerrs Gold earn-in agreement.

 

Highlights

 

·    The Kerrs Gold Project in Northeastern Ontario holds a historic
resource estimate of 386,467 Oz (ounces) of Au (gold) as per the NI-43-101
standard.

 

·    Located in the Timmins Mining Camp which is one of the most prolific
camps for gold production in Canada. Nearby producing gold mines are operated
by Newmont (Hoyle Pond & Hollinger) and McEwan Mining (Black Fox Complex).

 

·    Accessible by road and close to existing mining and service
infrastructure.

 

·    Comprehensive historical data review with a view to creating a
greater understanding of the resource and its potential is underway. Results
from which will allow for the planning of an initial summer field campaign on
the property

 

 

 

Marc Sale First Class Metals CEO Commented:

"The signing of this deal signifies two important events for FCM, firstly
reinforcing the concept of identifying opportunities to add value then
monetise, secondly the potential acquisition of the Kerrs Gold Project
catapults FCM from an explorer to a company with a resource. Given the
continuous rise in gold prices, with new all-time highs being reached, the
opportunity to earn into Kerrs Gold is an incredibly appealing proposition for
FCM"

 

 

Kerrs Gold Property Background

Further to the announcement of 3 April 2024 and prior to the expiry of the
thirty day exclusivity agreement FCM has now executed an option to purchase
agreement with the 100% owners of the Kerr gold property claims. The deal
outline is summarised at the foot of this release.

 

On completion of the terms of the Agreement FCM will control 100% of the Kerrs
Gold Project located in northeastern Ontario.

 

The road accessible Kerrs Gold Deposit consists of 36 units totalling
approximately 665 hectares and lies 90 kilometres east-northeast of Timmins,
in the Larder Lake Mining Division.

 

Geologically the Project is located in the Abitibi Greenstone Gold Belt, see
Figure 01.

Figure 01 showing the district scale location of the Kerrs gold property as
well as significant producing mines in the area.

 

The occurrence was discovered by Noranda in the late 1970's and early 1980's
by following glacial dispersion trains 'up-ice' to the source. Drilling
continued into the late 1980's, with further drilling in the early to
late-2000 and early 2011. The drilling database was used to calculate the 2011
historic resource estimate, with further drilling completed subsequent to the
release of the estimate, see Figure 02.

 

Figure 02 at property scale showing the significant historical sampling as
well as the drill grid

 

Kerrs Gold is considered a stratabound deposit, occurring at the contact of a
thick, mafic pillow flow sequence overlying an ultramafic, magnetite-rich flow
sequence. Quartz feldspar porphyry sills are spatially located above and below
the breccia zones. This stratigraphy is synclinally folded with the deposit
lying 350m to 425m below surface. Drilling has traced the main zone 800 metres
and remains open in both directions and at depth.

 

Gold mineralisation occurs as pyritized quartz vein replacement breccias
enveloped by quartz fuchsite carbonate vein breccias averaging approximately
10 m and alteration envelopes varying up to 40 m in thickness. Gold tenure is
proportional to the pyrite content ranging up to 10% which is commonly
disseminated and crystal aggregates in the sheeted, quartz vein replacement
breccias. These breccias, averaging 31% quartz, exhibit reasonable correlation
conforming to volcano-stratigraphic contacts as well as moderate to good
continuity in grade correlations at the lower and upper boundaries of the vein
breccia and alteration envelope assemblages.

 

The Kerrs Gold historical resources estimate of 386,467 Oz Au was disclosed in
"NI 43-101 Resource Estimation on the Kerr's Gold Deposit, Matheson, Ontario"
prepared for Sheltered Oak Resources Inc. by Garth Kirkham, P. Geo of Kirkham
Geosystems Ltd. And dated June 10, 2011.

 

FCM is reviewing the resource estimate with a view to it defining further
exploration.

Whilst there was further drilling completed after the historic estimate was
released FCM is not aware of any more recent resource estimates.

 

The resource estimation methods and parameters were as follows:

 

o  Forty-one drill holes were utilized to interpolate the KBX Zone.

o  Composite length of 2 m was chosen and composites were weighted by length.

o  Sectional interpretations were wire-framed to create 3-D solids of the
zones.

o  Zones were coded to the composites, and the block model, to constrain the
modelling process.

o  Composites for the mineralised zone were used to interpolate into the
blocks foreach zone.

o  Ordinary kriging was used as the interpolator.

o  Relative elevation modelling was used to guide the ellipse orientation
that accounts for the variation in dip due to the synclinal structure.

o  A minimum of two composites were used for each block and a maximum of two
composites were used per drill hole; a maximum of 12 composites were used per
hole.

o  A cutting factor was applied for gold with outlier composites limited to
10 g/t Au based on cumulative frequency plots. A zero cut-off grade was used
for the manual polygonal method.

 

The Kerrs historic estimate is an inferred resource as defined in National
Instrument 43-101.  The table below shows the potential ounces with differing
cut of grades. FCM would look at remodelling the resource in order to identify
higher grade envelopes for targeting in any proposed future drilling.

 Kerrs Resources          TONNES     GOLD (g/t)  Metal

 Estimate Cut-Off Grade                          (OZ.)
 0.5                      7,041,460  1.71        386,467
 1                        5,237,213  2.04        342,856
 1.5                      3,375,361  2.47        268,468
 2                        1,936,189  3.04        188,972
 2.5                      1,165,664  3.57        133,778
 3                        818,171    3.94        103,622

 

FCM has already instigated a review of the historical information,
particularly the drilling in order to fully appraise the potential of the
resource. The review will also include a property-wide appraisal of the
potential for further targets for prospecting as well as possible future
drilling.

 

The Kerrs property is not currently permitted and once the data review has
been completed in conjunction with ground appraisal a permit will be drafted
for consultation with the local First Nations.

 

The Company plans an immediate review of the historical database to define
target areas to both significantly expand the historic resource and to test
for additional structures. The Company has yet to verify the historical data.

 

 

Terms of Deal

 

 Due Date                                                                        Share Payments               Cash Payment (CAD)
 Upon signing the Agreement                                                      -                            $6,000 ($10,000 less $4,000 exclusivity deposit)
 Six months after effective date                                                                              $10,000
 Within four months of signing the Agreement on the publication of a prospectus  CAD20,000 in share value(1)
 On the 1(st) anniversary of the Effective Date                                  CAD30,000 in share value(1)  $30,000
 On the 2(nd) anniversary of the Effective Date                                  CAD40,000 in share value(1)  $40,000
 On the 3(rd) anniversary of the Effective Date                                  CAD60,000 in share value(1)  $60,000
 Total                                                                           CAD150,000 in share value    $150,000

 

(1) Shares to be issued at the mid-price on the day of issue

Ends

For further information, please contact:

 

 James Knowles, Executive Chairman  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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