REG - First Class Metals - McInnes Lake Property Exclusivity Signed

FIRST CLASS METALSAnnouncement

19/03/2024 07:00

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RNS Number : 3242H  First Class Metals PLC  19 March 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

19(th) March 2024

McInnes Lake Property Exclusivity 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 North West Ontario land holdings is pleased to announce that is
has signed a sixty day exclusivity agreement with Emerald Geological Services
Limited ("EGS") in respect of an earn into the McInnes Lake Property ("McInnes
Lake") in NW Ontario.

 

HIGHLIGHTS

 

 

·     Claims cover in part the interpreted deep-rooted extensional shear
zones continuing north from the Red Lake Greenstone Belt along slivers of
greenstone sandwiched between granitic plutons.

 

·     Similar aged rocks to Balmer Assemblage in Red Lake which hosts
major gold deposits.

 

·     Underexplored greenstone belt in the North Caribou Terrane of the
Superior Province.

 

·     No previously known gold occurrences until 2021. Field programs in
2021 and 2023 identified 6 new gold occurrences >100 ppb up to 3.6 g/t Gold
("Au") on the current claims.

 

·     Anomalous lithium ("Li") in volcanic host rocks up to 1200 ppm Li
in boulders and 984 ppm Li in outcrop discovered in 2021 and 2023 field
programs.

 

·     Three pegmatite dykes previously identified by the Ontario
Geological Survey ("OGS"), related to McInnes Lake Pluton, a fertile
peraluminous granite body.

 

 

·     (1)The three pegmatite dykes were investigated and sampled in 2023.
Lithium values up to 354 ppm from bulk samples of pegmatite; rubidium ("Rb")
and caesium ("Cs") values up to 2750 ppm and 413 ppm respectively from samples
of blocky k-feldspar. Up to 984 ppm Li, 649 ppm Rb and 216 ppm Cs from
adjacent volcanic host rocks.

 

·     Pegmatite exposures are up to approximately 40m wide with mapped
strikes of up to 190m.

 

·     (1)Pegmatite and anomalous lithium (up to 501 ppm Li) in volcanics
discovered further north of the previously identified pegmatites in 2023;
system now has ~700-meter strike length and is open along strike.

 

(1)Review of data undertaken by Frederick Breaks, PhD, P. Geo. Comparisons
made between McInnes Lake Pluton - exocontact pegmatite system and Separation
Rapids pluton (Avalon Advanced Materials Lithium Mining | Avalon
(avalonadvancedmaterials.com)
(https://www.avalonadvancedmaterials.com/lithium-mining) .

 

(1)GoldON Provides Analytical Results from the Fieldwork at McInnes Lake
Li-Pegmatite Prospect (goldonresources.com)
(https://goldonresources.com/index.php/news/382-goldon-provides-analytical-results-from-the-latest-fieldwork-at-its-mcinnes-lake-lithium-pegmatite-prospect)

 

Marc Sale CEO commented:

"This is an exciting development for FCM greenfield exploration opportunities
on a property which potentially contains the same structure that is present at
Red Lake. The lack of previous systematic or comprehensive exploration in a
favourable geological setting presents realistic expectation for a significant
discovery."

 

Exclusivity Terms & Background

First Class Metals (FCM) is currently in the process of finalising the
commercial terms for the McInnes Lake Property. As part of the negotiation
process, FCM will make an exclusivity payment of $5,000 CAD, for a sixty-day
exclusivity period. This payment ensures that FCM has the exclusive right to
negotiate and finalise the terms of the project within the specified
timeframe.

The $5,000 exclusivity payment will be deducted from the year one work
program, which is proposed to have a total value of $50,000, with the payment
credited towards FCM's total commitment for the first year.

EGS will undertake the geological work on the property and no charge for their
personnel's time.

In the first year, apart from the work program of $50,000 which will give FCM
a 40% interest in the property, FCM will not have any additional cash
commitments for the project. This structure allows FCM to have a relatively
low cost entry into what is considered to be a highly prospective greenfield
project.

The Red Lake Mining District is renowned for its rich gold mining history and
impressive production. As of 2020, the Red Lake Mining District has
collectively produced over 26 million ounces of gold. This significant
production figure highlights the district's status as a major Canadian
contributor to the global gold supply.

The Campbell and Red Lake mines, operated by Evolution Mining, have
collectively contributed to over 26 million ounces of gold production.
Notably, both mines have maintained historic ore grades averaging about 22
grams per tonne of gold (g/t Au). Their consistent high-grade ore has been
instrumental in their productivity, highlighting the district's reputation for
hosting quality gold deposits.

 

 

 

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

 

 

Qualified Person

The technical disclosures contained in this announcement have been drafted in
line with the Canadian Institute of Mining, Metallurgy and Petroleum standards
and guidelines and approved by Marc J. Sale, who has more than 30 years in the
exploration industry and is considered a Qualified person owing to his status
as a Fellow of the Australian Institute of Mining and Metallurgy.

 

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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