REG - Fulcrum Metals PLC - Study Provides Pathway to Exclusive Tech Agreement

Fulcrum MetalsAnnouncement

12/03/2025 07:00

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RNS Number : 2690A  Fulcrum Metals PLC  12 March 2025

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
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UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

Fulcrum Metals plc / EPIC: FMET / Market: AIM / Sector: Mining

 

 

12 March 2025

 

 

Fulcrum Metals plc

("Fulcrum" or the "Company" or the "Group")

 

Fulcrum Advances Path to Exclusive Technology Agreement with Extrakt and
Alliance Partner Bechtel After Positive Study reported at Teck Hughes

 

Fulcrum Metals plc (LON: FMET), a technology led company focused on the
recovery of precious metals from mine tailings in Canada, is pleased to
announce positive results for the Phase 2 high level conceptual study (the
"Study") at its Teck Hughes Gold Tailings Project in Ontario, Canada ("Teck
Hughes" or the "Project"). The Study was undertaken by Extrakt Process
Solutions, LLC. ("Extrakt") and Testing Design Implement Solutions LLC ("TDI")
and provides Fulcrum with an initial non-optimised assessment of the Project,
based on information obtained from the previous high-level leaching test work.

 

Highlights of Study

·    Proof of concept provides scalable opportunity to introduce tailings
from several local sites and replicate across Canada

·    US$33 million pre-tax Net Present Value at a 7.5% discount
("NPV(7.5)") with an Internal Rate of Return ("IRR") of 21.4% based on a 9
year operational life just at Teck-Hughes

·    Circa 3-year payback period from production

·    Based on an initial scenario of 2,000 tonne per day ("Mt/day") of
tailings, non-optimised gold recovery of 59.4% and leach time of 6 hours

·    Refining the leaching technology and optimisation of test work
parameters has the potential to increase gold recovery to at least 70%

·    Sensitivity analysis shows a 25% increase on recovery rates to 74%
suggesting an initial scenario of:

o  Increase of NPV(7.5) to US$75.5 million pre-tax

o  Increase IRR to 37.7%; and

o  Reduction of payback period to less than 2 years from production.

·    Additional upside potential from reducing leach times, additional
reagent and water recycling, vacuum filtration of residue and recovery of
other minerals held in the pregnant leach

·    The Company now plans to focus on optimising all parameters and
further evaluate the resource to enhance ore grade and volume

 

William Florman, President of Extrakt, commented:

"We are encouraged by the results of the conceptual study. The initial
unoptimised gold leach recovery rates from the Teck Hughes refractory tailings
are very positive and demonstrate the robustness of the technology with
refractory ore. With the plant design conceptualised and first phase testing
complete, the work we have accomplished with Fulcrum provides a solid basis
focus on optimising the leaching technology and capabilities of the
reprocessing facility.

"We look forward to working with Fulcrum to finalise the master licensing
agreement and to help unlock further potential for tailings in this region
using Extrakt's technology through our relationship with Fulcrum."

 

Ryan Mee, Chief Executive Office of Fulcrum, commented:

"We are delighted with this unoptimised study which has successfully
established proof of concept at the Teck Hughes Gold tailings project. The
operating design integrates Extrakt's breakthrough non-cyanide leaching
technology with a comprehensive tailings management plant, enabling the
reprocessing of mine waste to generate meaningful returns while enhancing
environmental sustainability.

"These fantastic results firmly position Fulcrum as a prospective leader in
tailings reprocessing. I am excited about what can be delivered through
optimisation, scalability through creating a tailings hub at Teck Hughes and
how we can use this concept to help address the many historic gold mine waste
sites throughout Canada."

"Importantly, this study provides the technical detail required to enable us
to move forward with Extrakt and its alliance partner, Bechtel Energy
Technologies & Solutions, Inc., on the technology exclusivity agreement
for historic gold mine waste sites in the regions of Timmins and Kirkland Lake
- two of Canada's most productive and important gold camps."

Teck Hughes Phase 2 Conceptual Study

Fulcrum engaged Extrakt and TDI to execute a conceptual study to an accuracy
of +/- 50% using the information developed during the previous high-level test
work, to provide the Company with a first insight into the Teck-Hughes project
viability.

The scope of the Study included evaluating the economic impact of
incorporating Extrakt's non-cyanide leaching technology and TNS(TM) dewatering
technology to improve solid-liquid separation. The objective of the high-level
conceptual study was to provide the major equipment scoping, specification and
sizing using the scale-up information generated by the laboratory test work.
Together with a conceptual plant layout, flowsheet, and mass balance, the
capital and operating expenditures for the operation were estimated.

Operating Expenses (OPEX) for different ore throughput capacities were
considered, ranging from 1,000 to 2,000 Mt/day, while maintaining a uniform
particle size of 80 microns and a gold recovery rate of 59.4 wt% at the
prevailing market price of gold (US$ 2,887.5/oz). The analysis provided
insight into how operational costs are scaled with increased processing
volumes under controlled conditions. The data suggest that the optimal plant
capacity, within the range evaluated, would be at the upper end (2,000
Mt/day). This observation implies that higher processing rates may offer
better operational efficiencies.

The Capital Expenditure (CAPEX) estimate for the three throughput scenarios,
focussed solely on the process plant and associated infrastructure within
Extrakt's scope. All costs were denoted in USD. These estimates are considered
to have an overall accuracy of ±50%. Email quotations were sourced from
multiple vendors solely for major equipment, while the costs for the remaining
equipment necessary for the process were derived from a comprehensive
database.

The IRR evaluation, at various throughput capacities, was performed as a
function of gold recovery while maintaining a constant gold market price of
US$ 2,899/oz. The analysis was conducted with, and without, considering the
residual plant value. The results, including the residual value, are presented
in Table 1. IRR and NPV sensitivity analysis is shown in Tables 2 and 3.

Table 1 - IRR as a function of gold recovery at different throughput
capacities (with residual)

Table 2 - IRR sensitivity analysis for 2,000 M/t day

Table 3 - NPV sensitivity analysis for 2,000 M/t day

Conclusions of the Study

·    The cash flow model developed for the three evaluated throughput
scenarios (1,000, 1,500, and 2,000 Mt/day) indicates that a plant throughput
of 2,000 M t/day is the most economically favourable within the range
considered in the study.

·    At 2,000 Mt/day, the projected payback period is approximately 4
years, which is shorter compared to the 5.5 years estimated for a throughput
of 1,500 M t/day. These scenarios include a 12-month period pre-production for
set up and commissioning. This suggests that in the range evaluated increasing
the plant's capacity enhances economic returns, with only a marginal increase
in operating costs relative to the additional revenue generated.

·    While all three throughput scenarios show positive cash flow over
time, the 2,000 M t/day option provides the best balance of accelerated
payback and improved financial performance. The difference in payback periods
between 1,500 M t/day and 2,000 M t/day is significant enough to justify
scaling up production, assuming capital expenditure and operational risks
remain manageable.

·    The sensitivity analysis of the Internal Rate of Return (IRR) shows
that gold price and recovery are the most influential variables, with steep
and symmetric curves indicating proportional impacts on IRR. Small changes in
these factors significantly affect project returns. Capital cost negatively
correlates with IRR, where increased expenditure reduces returns, though the
project is less sensitive to capital and operating costs overall.

·    The sensitivity analysis of Net Present Value (NPV) at a 7.5%
discount rate shows that NPV is most sensitive to gold price and recovery,
with small changes in these factors having a disproportionate impact. Negative
changes in gold price and recovery have a more severe effect. Capital and
operating costs also influence NPV, though to a lesser extent. Prioritising
high recovery rates and closely monitoring market conditions is recommended to
maintain project value.

·    Overall, the findings indicate that a throughput level of 2,000 M
t/day is the most economically efficient and offers the shortest payback
period within the scope of the study.

 

Qualified Person Statement

The technical information in this announcement has been reviewed by Edward
(Ed) Slowey, BSc, PGeo, technical advisor to Fulcrum Metals Plc. Mr Slowey is
a graduate geologist with more than 40 years' relevant experience in mineral
exploration and mining and a founder member of the Institute of Geologists of
Ireland. Mr Slowey has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration and to the activity
which has been undertaken to qualify as a "Qualified Person" in accordance
with the AIM Rules Guidance Note for Mining and Oil & Gas Companies. Mr
Slowey consents to the inclusion in the announcement of the matters based on
their information in the form and context in which it appears.

 

Glossary

 

 Item         Definition

 "Au"         Gold

 "IRR"        Internal rate of return

 "Mt /day"    Metric tonnes per day

 "NPV(7.5)"   Estimated net present value using a discount rate of 7.5%

 

 

For further information please visit https://fulcrummetals.com/
(https://fulcrummetals.com/) or contact:

 Fulcrum Metals PLC
 Ryan Mee (Chief Executive Officer)           Via St Brides Partners Limited

 Allenby Capital Limited (Nominated adviser)
 Nick Athanas / George Payne                  Tel: +44 (0) 203 328 5656

 Clear Capital Markets Limited (Broker)
 Bob Roberts                                  Tel: +44 (0) 203 869 6081

 St Brides Partners Ltd (Financial PR)
 Ana Ribeiro / Paul Dulieu                    Tel: +44 (0) 20 7236 1177

 

 

 

Notes to Editors

 

FULCRUM METALS - BACKGROUND

 

About Fulcrum Metals PLC

 

Fulcrum Metals PLC (AIM: FMET) is an AIM quoted technology led natural
resources company focused on recovery of precious metals from mine tailings
(previously milled and processed ore) in Canada using non-cyanide leaching
technology developed by Extrakt Process Solutions LLC and its associates
(together "Extrakt").  The Company's initial projects are the tailing sites
of the former Teck Hughes and Sylvanite mines which are the third and fifth
largest producing gold mines in Kirkland Lake, Ontario. The priority is to
deliver a total tailing management concept at the Teck Hughes site that is
capable of scaling across further mine waste sites. In addition, the Company
has interests in a portfolio of highly prospective mineral exploration and
development projects in both Ontario and Saskatchewan Canada.

 

Fulcrum is in advanced discussions with Extrakt to acquire exclusive licenced
use of their proven disruptive leaching technology on gold mine waste sites
over the mining districts of Timmins and Kirkland Lake. These are two of
Canada's biggest gold camps with a history of over 110Moz Au produced over the
past 100 years and more than 70 documented legacy mine waste sites. This
presents Fulcrum with the opportunity to develop into a significant
environmentally friendly gold producer.

About Extrakt

Extrakt Process Solutions is a technology company that is focused on
separation technologies for recovering precious mineral recovery, hydrocarbon
separation as well as dewatering of mine waste and other related processes
without the use of cyanide. The company has a global patent portfolio and
continues to develop new processes and technologies. See www.extraktps.com
(https://www.extraktps.com/)

About Bechtel

Bechtel is a trusted engineering, construction and project management partner
to industry and government. Differentiated by the quality of our people and
our relentless drive to deliver the most successful outcomes, we align our
capabilities to our customers' objectives to create a lasting positive impact.
Since 1898, we have helped customers complete more than 25,000 projects in 160
countries on all seven continents that have created jobs, grown economies,
improved the resiliency of the world's infrastructure, increased access to
energy, resources, and vital services, and made the world a safer, cleaner
place. Bechtel serves the Infrastructure; Nuclear, Security &
Environmental; Energy; Mining & Metals; and Manufacturing & Technology
markets. Our services span from initial planning and investment, through
start-up and operations. See www.bechtel.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.bechtel.com%2F&esheet=54164232&newsitemid=20241210300061&lan=en-US&anchor=www.bechtel.com&index=2&md5=0882499bb33a4d564aec4011418bfcf5)

Extrakt Process Solutions, LLC (Extrakt) and Bechtel Energy Technologies &
Solutions, Inc. (BETS) have formed a strategic global technology alliance, to
commercialize Extrakt's novel, leaching technology and solid-liquid separation
technology, known as TNS™. TNS addresses the difficult challenges of mine
tailings, dewatering, and product recovery in a sustainable, effective manner.
Click here
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fen.prnasia.com%2Freleases%2Fapac%2Fextrakt-and-bechtel-partner-to-commercialize-groundbreaking-solid-liquid-separation-technology-437122.shtml&esheet=54164232&newsitemid=20241210300061&lan=en-US&anchor=here&index=1&md5=b45e3f287d370b8ad4d40844f8ddfffd)
 to read about the strategic alliance press release.

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