REG - First Class Metals - Zigzag Lithium Update & Issue of Equity

FIRST CLASS METALSAnnouncement

18/09/2023 07:00

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RNS Number : 6889M  First Class Metals PLC  18 September 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

18(th) September 2023

Zigzag lithium Exploration Update & Issue of Equity

 

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 and Zigzag
land holdings is pleased to announce the launch of systematic exploration
campaign at the Zigzag Lithium project in the Province of Ontario Canada.
("Zigzag" or the "Project").

 

Highlights:

 

·      The Zigzag project is considered highly prospective for the
discovery of economic pegmatite hosted lithium mineralisation. Historically
several outcropping lenses of a potentially cohesive lithium-tantalum bearing
pegmatite has been sampled across the property with encouraging results.

 

-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.

-Sampling by Nuinsco returned highly anomalous lithium (Li), tantalum (Ta),
and rubidium (Rb), peaking at 3.55% Li(2)0 , 836 ppm Ta₂O5, and 4,003 ppm
rubidium Rb2O.

-Several shallow historic drill holes along the occurrence have returned
encouraging results, 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.

 

·      First pass limited sampling whilst achieving access  returned
samples with a peak of 1.7% Li20 and 346ppmTantalum, 104 ppm Niobium and
>3000ppm Rubidium.

·      Currently an experienced geological team is on the project,
undertaking a prospecting and mapping of the known exposures.

·      In parallel with this initial systematic sampling programme the
team has initiated a sawn channel sampling programme along strike at intervals
across the exposed pegmatite outcrop.

·      Marc J Sale CEO visited the project in the last week to oversee
the commencement of operations.

·      A further thirty-nine grab samples have been collected and are at
the laboratory for assay and will be reported as soon as available.

 

Figure 1-Historical drill holes and sampling results from the Zigzag project.

 

Marc J Sale First Class Metals CEO Commented:

"The initial, non-systematic grab samples collected by FCM, myself included,
have demonstrated and validated the potential indicated by the historic
samples from the Zigzag showing. Having visited the property and walked the
outcrop I am confident that drilling will support the tenor of assays reported
to date. Whilst we await further assays, FCM has embarked on a prospecting and
systematic sampling programme including sawn channel sampling of 'exposed'
outcrop in the central zone. I am confident that further outcrops in this zone
and along strike will be identified. The focus of the current, ongoing
programme is to bring Zigzag to a drill ready status in a 'fast track,' but
diligent manner.'

 

Photograph of pegmatite sample exhibiting significant spodumenes crystals Li
 AlSi2O6 

2023 Sample Results to date:

 Sample
 Number    Lithium (Li) %  Tantalum (Ta) ppm  Niobium (Nb) ppm  Rubidium (Rb) ppm
 A1104880  1.39            184                104               884
 A1104881  0.51            85                 48                2770
 A1104882  1.0             139                81                855
 A1104883  0.012           198                88                3750
 Sample-1  0.07            346                72                1140
 Sample-2  0.41            219                79                1130
 Sample-3  0.196           79                 54                361
 F006543   1.7             75                 41                820
 F006544   1.63            235                90                1200
 F006545   1.65            115                60                1190

Table of the sample results to date. Note these are 'non-systematic samples
collected during access appraisal. (Values rounded for clarity).

 

 

Background & Location

The project is less than 100km from Armstrong in northwest Ontario in
the Seymour Lake area (See figure 2 ), 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 (Tebishogeshik
occurrence) and is wholly contained within the claim block, the
lithium-tantalum mineralization is pegmatite-hosted with significant rubidium
and niobium mineralisation 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 strike of the known outcrop 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 known outcrop have returned significant intersections,
including, (in separate drill holes) an intersection grading 1.08% Li(2)O over
6.1m and  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)

 

Figure 2-Location of the Zigzag property within a 'key' area for Ontario's
rapidly expanding lithium industry.

 

Issue of Equity & Total Voting Rights

159,735 new ordinary shares are being issued to Nuinsco Resources Limited in
respect of the year one Zigzag 'option to earn in' ((2)see news release 9(th)
March), they will rank pari passu with the Company's existing issued ordinary
shares. The issue price is 11.15p which represents $30,000CAD, being the
consideration for the year one share element fees of the option.

The Company intends to allot and issue these new ordinary shares under its
existing authorities on a non-pre-emptive basis.

The Company will be making its application to admit the new ordinary shares to
the Official List of the FCA and to trading on the Main Market (Standard
List) of the LSE. Admission is expected to occur on the 20(th) of September
2023.

(2)https://polaris.brighterir.com/public/first_class_metals/news/rns/story/x8eolox

 

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

 

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 base / precious metals and a prolific number of
exploration projects and numerous prospector's 'showings'.

 

FCM currently 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. Late last year 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 drill proven Ni-Cu
project. 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 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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