REG - First Class Metals - MoU with Whitesand FN - Zigzag Lithium Property

FIRST CLASS METALSAnnouncement

16/08/2023 07:30

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RNS Number : 4451J  First Class Metals PLC  16 August 2023

 

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

16(th) August 2023

MoU Signed with Whitesand First Nation in respect to Zigzag lithium property

First Class Metals PLC ("First Class Metals" "FCM" or the
"Company") the UK metals exploration company seeking economic metal
discoveries across its extensive Canadian Schreiber-Hemlo & Sunbeam land
holding is pleased to announce that it has signed an agreement (the
"Memorandum of Understanding" or "MoU") with the Whitesand First Nation (WFN)
for initial exploration on the Zigzag lithium project.

Highlights:

·      MoU signed for a three-year term with the Whitesand First Nation
provides for the formal commencement of exploration work on the Zigzag
property.

·      The Zigzag lithium property  is situated in the Armstrong area
of Canada in a locality that hosts several developing hard-rock pegmatite
lithium projects, including Green Technology Metals Limited (ASX:GT1) owned
Seymour Lake Project and Battery Age Minerals Limited (ASX:BM8) owned Falcon
Lake Project.

 

Whitesand First Nation MOU

FCM has optioned the Zigzag property from Nuinsco who were successfully
awarded an Exploration Permit. However, as no agreement was needed nor
discussed with the First Nations at that time, FCM took the step of entering
into discussions with the Whitesand First Nation. FCM is now pleased to
announce that, following continued positive discussions and consultation with
Whitesand First Nation, FCM has executed a MoU, by which the Company will
commence formal exploration activities on the Zigzag lithium property in
Ontario, Canada in collaboration with the Whitesand First Nation.

First Class Metals is grateful for the support and endorsement of Whitesand
First Nation and is committed to continuing to work closely with Whitesand
throughout all stages of the Zigzag project. The Company believes that, by
working with indigenous communities in Ontario, it can create long lasting and
mutually beneficial partnerships that generate significant economic
opportunities and contribute to the sustainable development of local
communities.

In the meantime, FCM intends to advance the discussions with Whitesand First
Nation to formalise an Early Exploration Agreement (EEA).

 

 

 

 

 

Figure 1-Zigzag Lithium Location in key Ontario 'Battery Metals Belt'

 

Recent activity by Battery Age Minerals Limited as reported in their news
release of 26(th) July 2023, indicates that widths of plus 20m with grades of
over 1% even 2% Li(2)O are attainable in this lithium belt. Historical
sampling and limited drilling at Zigzag has proved that grades of >1%
Li(2)O exist and FCM will be focussing exploration efforts to confirm the
width of the pegmatite as being in the order of 20m and extending over 800m as
previously reported, .

Figure 2- the historical work conducted by and pre-Nuinsco

Background-Zigzag Lithium

Historic grades at surface up to 1.68% lithium (Li(2)0) over 7.9m and 0.168%
tantalum (Ta(2)0(5)) over 2.54m. The claim group covers the historic
Tebishogeshik occurrence as well as other mineralised occurrences.

 The pegmatite hosting the deposit is reported to be more than 800m in length
and 20m thick at surface.

 Sampling by Nuinsco (previous operator) returned strongly anomalous lithium,
tantalum, and rubidium, peaking at 3.55% Li(2)0 with significant tantalum,
and rubidium results at 836 ppm Ta₂O5, and 4,003 ppm Rubidium Rb₂2O.

The project is a little over 50km from Armstrong in northwest Ontario in
the Seymour Lake area, a district already proved to be prospective for hard
rock, pegmatite hosted lithium. Existing infrastructure currently in place in
the local area is expected to be further bolstered in the future by the
planned Jackfish Hydro project and a Spodumene Process Plant at the Green
Technology Metals, Seymour site which is just over 10km away.

The six-unit claim group includes a mapped structure of 800m which
(Tebishogeshik occurrence) and is wholly contained within the claim block, the
lithium-tantalum mineralization is pegmatite-hosted with significant rubidium
and cesium mineralization also reported. All of which are 'critical
minerals' as identified by the (1)Canadian and United Kingdom Governments.

Previous workers of the Tebishogeshik occurrence have identified Li(2)O and
Ta(2)O(5) mineralization along the entire length of the showing from sampling
at surface, grading up to 1.68% Li(2)O over 7.9m and 0.168% Ta(2)O(5) over
2.54m in separate channels samples. Several shallow historic drill holes along
the occurrence have returned significant intersections, including, (in
separate drill holes) an intersection grading 1.08% Li(2)O over 6.1m and a
separate intersection of 399.8ppm Ta(2)O(5) over 2.92m. Both intersections
were less than 20m down hole. The structure is open along strike and to depth
and remains to be fully evaluated.

Lithium-ion battery production capacity pipeline globally to 2030 increases up
to 8.1 TWh and North American EV battery production is forecast to reach 1 TWh
annually by 2030. Even if production from known current assets were to double
against planned capacities, expected North American demand alone would exceed
supply by 40%.

(1) Minister Wilkinson Releases Canada's $3.8-billion Critical Minerals
Strategy to Seize Generational Opportunity for Clean, Inclusive Growth -
Canada.ca
(https://www.canada.ca/en/natural-resources-canada/news/2022/12/minister-wilkinson-releases-canadas-38-billion-critical-minerals-strategy-to-seize-generational-opportunity-for-clean-inclusive-growth.html)

Resilience for the Future: The United Kingdom's Critical Minerals Strategy (
(https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1097298/resilience_for_the_future_the_uks_critical_minerals_strategy.pdf)
publishing.service.gov (http://publishing.service.gov/) .uk)

 

 

 

 

Figure 3-Photo of specimen samples of Zigzag lithium bearing pegmatite taken
from the Zigzag property near to where historic as well as recently reported
samples by FCM were collected, (see RNS of June 8(th) 2023). Note very coarse
crystalline fabric.

Marc Sale First Class Metals CEO Commented:

"I am delighted that having now visited the property and seen a 'snapshot' of
Zigzag's potential I am pleased that the exploration of the Zigzag property
will now commence in earnest. More so that it is with the support of the
Whitesand First Nation. We will shortly have a team on the ground prospecting
in advance of a sawn channel sampling programme aimed at identifying sections
of the pegmatite for a focussed drill programme.

 

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
 Ayub Bodi, Executive Director      AyubB@Firstclassmetalsplc.com (mailto:AyubB@Firstclassmetalsplc.com)    07860 598086

 

First Equity Limited

(Financial Adviser & Broker)

 

 Jonathan Brown     0207 3742212
 Jason Robertson    0207 3742212

 

 

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 for exploration with a robust and thriving
junior mineral exploration sector. Specifically, the Hemlo 'camp' is a
proven world class address for gold / VMS exploration. This geological terrane
has significant production, both in base / precious metals, and a prolific
number of exploration projects as well as 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.  Recently FCM completed the option to purchase the historical high
grade (gold) Sunbeam past producing mine

 

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.

 

Zigzag Lithium-Deal Terms

 

Terms of the deal:

The deal is structured so that FCM has an option to earn-in up to an 80%
interest over the exclusive option held by Nuinsco Resources over the Zigzag
mining claims. The payments for the exercise of this option include a cash
component of $CAD500,000 and a share component of $CAD250,000 in FCM Ordinary
Shares spread across approximately 3.5 years. Additionally, FCM has committed
to undertake exploration related expenses on the property over the same period
to a value of $CAD550,000.

 Table 1 Zigzag Option Schedule
                                     Cash (CAD$)          Ordinary FCM Shares (CAD$)              Annual Work Commitment (CAD$)
 On Signing                          50,000               25,000                                  0.00
 June 01, 2023                       75,000               30,000                                  50,000
 June 01, 2024                       100,000              50,000                                  100,000
 June 01, 2025                       125,000              60,000                                  150,000
 June 01, 2026                       150,000              85,000                                  250,000
 Total                               500,000              250,000                                 550,000

These payments and work commitments maybe accelerated at FCM's option. Upon
completion, the Zigzag mining claims will be owned by FCM and Nuinsco on an
80:20 basis and the parties will have deemed to enter a joint venture for the
development of these mining claims. Should either party not wish to contribute
to this joint venture a standard industry dilution clause shall apply. If
either party dilutes to a 10% ownership interest or lower, their entire
interest will automatically convert into a NSR royalty payment, and the other
party shall be the 100% owner of the Zigzag mining claims. Additionally, half
of such NSR royalty payment may be purchased by the other party by paying a
sum of $CAD 750,000.

 

 

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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