REG - First Class Metals - ‘Pickle Lake Property’Earn-In

FIRST CLASS METALSAnnouncement

11/07/2023 07:00

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RNS Number : 5713F  First Class Metals PLC  11 July 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

11(th) July 2023

'Pickle Lake Property'Earn-In

 

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 & Sunbeam land
holding is pleased to announce that it has signed an agreement with OnGold
Investment Corp ("OnGold") in respect to the  Pickle Lake Property, McGill
Township in Ontario.

 Highlights:

·      The property consists of 163 single cell mining claims,
comprising 3,455ha (hectares). Contiguous to both First Class Metals' North
Hemlo Property and Palladium One's (TSXV:PDM) Tyko Project.

·      The West Pickle Lake Nickel (Ni) Copper (Cu) discovery, with
grades of up to 10.4% Ni & 3.4% Cu over 2.3m is situated immediately south
of the Pickle Lake Property. See FCM news release 29(th) November 2022
polaris.brighterir.com/public/first_class_metals/news/rns/story/xz0603r
(https://polaris.brighterir.com/public/first_class_metals/news/rns/story/xz0603r)

·      Eleven high priority targets defined on the property from
previous operators work program.

·      Winter Lake Sediment sampling by FCM across the area as part of
the due diligence process returned gold grades of up to 103ppb gold (Au) which
is deemed to be extremely high for the wider area.

·      FCM's footprint in the area is now substantially increased, in a
district that holds numerous high grade nickel copper sulphide discoveries in
the near locality.

 Figure 1-Regional location map showing the 'Pickle Lake' Property to the
North and east of FCM's 100% owned North Hemlo Property.

The project is located roughly 21kms southeast from the town of Manitouwadge,
Ontario (see Figure 1), comprising of 163 single cell mining claims (all of
which are in good-standing through the 2023 field season). Limited previous
exploration has been focussed to investigate several discreet magnetic
anomalies thought to be associated with Ni-Cu-PGE mineralised mafic-ultramafic
intrusions. Similar rock types comprise the Tyko, RJ, Smoke Lake and the
recently discovered West Pickle massive sulphide discovery. The recently
identified 103ppb Au lake sediment sample collected by FCM also now shows the
gold potential of the area.

FCM, as part of the due diligence process, conducted an extension to our wider
North Hemlo lake sediment sampling campaign in April to March 2023. The
initial results from this campaign have reported gold grades of up to 103ppb.
The program was led under the supervision of Bruce MacLachlan, Principle of
Emerald Geological Services (EGS). Bruce has been quoted as saying "To the
best of our knowledge the 103ppb Au Lake sediment value is the highest lake
sediment value collected in the Hemlo Belt outside of the deposit area". While
at a very early stage, these initial results are extremely encouraging and add
to the potential for the prospectivity of the property.

 

Terms of the deal:

The deal is structured so that FCM has an option to earn-in up to an 80%
interest over the property. The payments for the exercise of this option are
1,000,000 shares of FCM Shares to be issued by the 31(st  )of October 2023
and a work commitment of $300,000 over a three year term. At the end of the
'earn-in' it is expected a JV will be created.

                         Ordinary FCM Shares  Annual Work Commitment (CAD$)
 By 31(st) October 2023  1,000,000            0.00
 By 10(th) July 2024                          $50,000
 By 10(th) July 2026                          $300,000 (aggregate)

 

 The JV possess a dilution mechanism on the basis of non-contribution. Should
Ongold not wish to contribute, or their ownership falls below 10%, the
remainder of their holding is automatically converted in to a 2% NSR. FCM has
the right to acquire 67% of the stated NSR for C$ 750,000 and a first right of
refusal over the remaining NSR.

Marc Sale CEO commented:

I am very pleased with this acquisition which has significantly increased our
area of exploration, not only because its is contiguous to North Hemlo, but
also for its proximity to West Pickle Lake and also the significant gold assay
in the lake sediment sample. Furthermore a share-issue deal for such an asset
further confirms the industries confidence in our ability to deliver success.
FCM will now formulate an exploration programme to follow on from the
excellent work by OnGold."

 

 

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.

 

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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