REG - Fulcrum Metals PLC - Teck-Hughes Tailings: Positive Initial Results

Fulcrum MetalsAnnouncement

07/05/2024 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240507:nRSG2783Na&default-theme=true

RNS Number : 2783N  Fulcrum Metals PLC  07 May 2024

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

 

 

7 May 2024

 

 

Fulcrum Metals plc

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

 

Positive Initial Results from Phase 1 Tailings Programme at Teck-Hughes

 

Records gold grades 16.9% higher than historically reported

 

Fulcrum Metals plc (LON: FMET), a company focused on mineral exploration and
development in Canada, is pleased to announce initial results of the Phase 1
sampling and testing programme ("the Programme") at the Teck-Hughes gold
tailings project, Canada.

 

Highlights

 

·    Sampling completed by local contractors across six site locations to
provide representative sampling across the Teck-Hughes tailings.

·    Composite samples for each site returned an average weighted grade of
0.717g/t Au which is 16.9% higher (see table 1) compared to historic sampling
of the same sites.

·    Composite sample of all six sites of 0.723g/t Au submitted for batch
leach testing using Extrakt technology for gold recovery rates.

·    12 samples from first batch leach testing submitted to American Assay
Laboratories for gold recovery rate analysis.

·    Second batch leach testing run underway for refinement and
optimisation.

·    Final results from Phase 1 will feed into Phase 2 conceptual study.

 

A total of 32 samples were taken for testing across six locations and
composited into individual samples. Testing of the gold grades within the
tailings has been extremely successful with composite samples for each of the
six sites sampled, returning an average weighted grade of 0.717g/t Au which is
16.9% higher (see table 1) than historic sampling of the same sites.

 

First batch leach testing using the Extrakt technology has been completed with
12 samples sent to an external laboratory for gold rate recovery analysis,
whilst a second batch leach test run is underway.

 

The Company announced on 30 November 2023 that, inter alia, it had entered
into a mining option agreement to acquire the Teck-Hughes gold tailings
project. Since this announcement Fulcrum has been advancing its discussions
with Extrakt, a sustainable technology company using separation technology to
extract metals from tailings without the use of cyanide, about the licensing
of its proprietary technology. In addition, further to the Company's
announcement on 24 January 2024, Fulcrum entered into a phased study and
testing programme for the Teck-Hughes project and is continuing further
discussions in relation to a wider licencing framework, including the
Sylvanite Gold Tailings Project.

The Programme is designed to evaluate the efficiency of Extrakt's processing
technology in recovering gold and other by-products from the tailings at
Teck-Hughes.

Ryan Mee, Chief Executive Officer of Fulcrum, commented:

"I am delighted that the results of the sampling and testing of the gold
grades at Teck-Hughes have come in above expectations and at 16.9% higher than
the historical reported average.

The first batch of leaching samples using Extrakt's technology is at the
laboratory for assay whilst a second batch of leach testing is underway as we
refine testing parameters and optimise recovery rates from the tailings. The
leaching samples are essentially to find out the gold recoverable rates from
the tailings material.

I look forward to updating the market on the results of the leaching test work
at Teck-Hughes, progress on a programme at Sylvanite and indeed progress on
the tailings business as a whole as we map out an exciting future for the
company and its shareholders."

 

Phase 1 sampling and testing

 

Sampling - complete across six locations chosen to provide representative
sampling across the tailings with 32 samples (totalling 39kg). The samples
were composited into six individual site composite samples for testing.

Grade and composition testing - the six composite samples were sent for ICP
multi-element analysis and gold fire assay at the ISO-17025 accredited
American Assay Laboratories facility in Sparks, Nevada. Results confirmed gold
results with average weighted grade of 0.717g/t Au being 16.9% higher (see
table 1) compared to historic sampling at the same sites. Initial XRD
Semi-Quantitative Analysis of the six samples reports primary tailings
composition comprising quartz - felspar - carbonate. Further detailed XRD
analyses to be carried out.

 

Gold recovery testing - a composite sample across all six sites grading
0.723g/t Au was then submitted for batch leach testing using Extrakt
technology for gold recovery rates. The First batch leach testing of 12
samples has been run and sent to ISO-17025 accredited American Assay
Laboratories facility in Sparks, Nevada for gold recovery rates analysis. A
second batch leach test run with further refinement and optimisation is
underway that will then also be submitted to American Assay Laboratories for
similar analysis.

Next steps - Further detailed analysis of the tailings composition is to be
undertaken in addition to at least a second batch leach test run using Extrakt
Technology to further refine testing parameters, which will also be sent for
gold recovery rate analysis at American Assay Laboratories. Results of the
final sampling and testing will feed into Phase 2 conceptual study.

 

Table 1 - Comparison of Fulcrum's 2023 sampling and gold grade analysis to
reported historic grades for each site.

                2023                            Historical ((1))
 Site Location  Metres sampled  Average g/t Au  Metres sampled  Average g/t Au  Diff to 2023 Grade g/t Au  Diff to 2023 Grade %
 225-12         5.0             0.592           5.0             0.52            0.069                      13.2%
 225-2          5.0             0.975           5.0             0.75            0.225                      30.0%
 425-14         7.0             0.635           7.0             0.59            0.047                      8.0%
 425-4          5.0             0.837           5.0             0.81            0.025                      3.1%
 525-10         6.0             0.641           6.0             0.49            0.149                      30.3%
 625-4          4.0             0.662           4.0             0.54            0.123                      22.8%
 Total          32.0            0.717           32.0            0.61            0.104                      16.9%

 

Notes:-

 

((1)) Includes direct comparison of historic samples from 2019 and 2022

 

Phased development programme outline

Phase 1 - High-Level Gold Recovery Investigation

Initial high-level gold recovery investigation will serve as the primary
evaluation of the enhanced gold recovery achievable through Extrakt
technology. The data collected in this Phase will validate and refine the
technology and support the planned Phase 2.

 

Phase 2 - Conceptual Study

The conceptual study will provide Fulcrum with a first insight into the
project's viability using the information developed during Phase 1. According
to the information available, the accuracy level of the study is approximately
± 50%.

 

Phase 3 - Laboratory Test Work

More detailed test work is required to optimise some of the leach parameters
as well as develop necessary scale-up parameters for all the major equipment
of the operation.

 

Phase 4 - Economic Assessment Study

The economic assessment study will provide a more accurate insight into the
project viability using the more detailed test work results for the whole of
the flowsheet. The study is aimed to be at a pre-feasibility accuracy level of
± 30%.

 

Teck-Hughes Gold Tailings Project Background

On 30 November 2023, the Company announced that it had entered into a mining
option agreement to acquire 100% of the Teck-Hughes Gold Tailings Project.
Concurrently, it also entered advanced discussions with Extrakt to test its
proprietary sustainable processing technology on the tailings found at the
project. Historic sampling and auger drilling campaigns were conducted at the
project, the first in 1980 and the most recent between 2018 and 2022 which
produced a non-complaint resource estimation.

 

As part of the most recent campaign a total of 95 auger samples were collected
and assayed at Actlabs in Timmins. The highest sample assayed 1.73g/t Au with
72 of the 95 samples assaying between 0.5 to 0.8 g/t Au, the average being
0.66g/t Au.

 

Based on the data from this sampling along with that of the drill programme
from 1980 an estimate of the tonnage was calculated over the north, west and
northeast arm of the tailings totalling 6,531,300 tonnes of material at
0.66g/t Au for 138,460 ounces contained Au. This estimate remains to be
verified by Fulcrum.

 

 

Glossary

 

 Item    Definition

 "g/t"   Grams per metric tonne

 "ICP"   Inductively Coupled Plasma - an analytical technique that can be used to
         measure elements at trace levels

 "XRD"   X-Ray Diffraction analysis - a non-destructive technique that provides
         detailed information about the crystallographic structure, chemical
         composition, and physical properties of a material

 "QAQC"  Quality assurance and quality control

 

 

Further information

The various historic non-compliant resource estimates cited above have not
been verified by Fulcrum and the tailings body requires detailed follow-up
sampling along with appropriate QAQC and estimation by an independent
qualified resource geologist in order to be able to report a resource
compliant with established resource codes.

 

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 this announcement of the matters and
information presented in the form and context in which it appears.

 

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

 

Fulcrum Metals PLC (LON: FMET) is an AIM quoted exploration and development
company which finances and manages exploration projects focused on Canada,
widely recognised as a top mining jurisdiction. Fulcrum's ambition is to
create an environmentally friendly and sustainable tailings and mine waste
business, driving mining change through combining low discovery risk assets
and jurisdictions with transformative technology capable of near-term cash
flow whilst capitalising on a portfolio of highly prospective exploration
assets.

 

Creating an environmentally friendly and sustainable tailings and mine waste
business

 

Through the adoption of potentially industry disruptive technologies to
deliver near-term cash producing assets. Fulcrum has acquired two gold
tailings projects via option agreements, the Teck-Hughes and Sylvanite gold
tailings projects, in the prolific Kirkland Lake gold camp, Ontario. The
projects are within 3km proximity of each other, with non-compliant estimates
of 138,460 ounces of gold and 67,051 ounces of gold respectively, totalling
205,511 ounces, subject to verification by Fulcrum. In addition, Fulcrum is
working on delivering a licensing framework in Ontario with Technology
partners Extrakt Process Solutions and alliance partners Bechtel Engineering.

 

Growth stage gold projects in Ontario

 

Fulcrum has two drill ready gold projects in Ontario.

 

The Big Bear and Jackfish Schreiber - Hemlo properties have a history of
prospecting and localised extraction since the late 19th century. However,
coherent property-level exploration programmes have been limited or absent,
particularly in recent times. The work completed by Fulcrum at Big Bear has
established a gold corridor of 3km in the Schreiber-Pyramid area with high
grade gold in rock samples of up to 45g/t and historical grades of upto
233g/t, developing multiple drill targets and prospects. This trend is open to
the North, East and South for further discovery. Fulcrum has also completed
high resolution geophysical surveys which now fully cover Big Bear,
identifying a further 5 high priority exploration targets for follow-up
investigation. Big Bear is reported to have the potential to host a large,
structurally controlled, stratabound-style banded iron formation (BIF) gold
prospect similar to the Musselwhite deposit (McNicoll et al., 2016), in
addition to an Archean greenstone, orogenic-style lode gold prospect,
extending past the bounds of known historical mineral occurrences.

 

The Tully property is host to a NI 43-101 compliant resource of 107,000 ounces
of gold with high grades reported in 1997 drilling of up to 2,555.5g/t Au over
0.5 metres within a wider intersection of 322.02g/t over 5.7 metres and 2013
drilling by SGX demonstrating potential extension and depth reporting 9.01g/t
Au over 6.7 metres, and 8.0g/t Au over 6.5 metres. Tully is located 30
kilometres northeast of Timmins within the world class Timmins-Porcupine gold
camp that has produced over 70m Oz of gold to date. Tully is 2 kilometres
southwest of the 1.2Moz Bradshaw Gold Project of Gowest Gold Ltd., currently
in development and within 30km of several multi-million ounce historical
deposits including the producing Hoyle Pond gold deposit. Work undertaken by
Fulcrum has identified several drill target locations with the objective of
extending the deposit along strike and at depth.

 

Establish the prospectivity of its wider non-core Ontario and Saskatchewan
portfolio

 

Fulcrum has highly prospective base metal projects in Ontario and Uranium
projects in Saskatchewan for which cost effective exploration methods will be
utilised to evaluate the projects with a view to securing potential joint
venture and/or acquisition interest.

 

Ontario Base Metals - Fulcrum has developed a strong nickel target at Dog Lake
in the Michipicoten Greenstone Belt with several rock samples in excess of
1,000ppm Ni related to a mafic/ultramafic intrusives, a strong copper
exploration target at Carib Creek in the Winston Lake Greenstone belt with
soil sampling surveys returning several strongly anomalous copper samples up
to 737ppm whilst at Tocheri Lake in the Dayohessarah Greenstone belt a
Versatile Time Domain Electromagnetics (VTEM) airborne geophysical survey
conducted over the southwest corner of the property identified a weak
electromagnetic conductor which may indicate buried mineralisation in addition
to several magnetic targets.

 

Saskatchewan Uranium - Fulcrum has amassed a highly prospective uranium
portfolio of over 59,000 hectares across the Charlot-Neely, Fontaine Lake,
Snowbird and South Pendleton claims. All of the projects are outside the
Athabasca basin along major structures, on trend with historic mines and areas
of significant M&A activity. Recent discoveries such as the Arrow
discovery (4.3m tonnes at 0.83% U308) and Triple R discovery (2.7m tonnes at
1.94% U308) have proved the concept of exploring along major structure outside
the Athabasca Basin. Historic records at Charlot-Neely include rock samples of
up to 6.2% U308, trenching samples of up to 2.1% U308 and significant
electromagnetic conductors covering a 16km zone thought to be prospective for
uranium mineralisation. Work completed by Fulcrum at Charlot-Neely and
Fontaine Lake includes hyperspectral data compilation identifying exploration
targets and field work resulting in discovery of high-grade uranium
mineralisation of up to 0.8% U308 and the discovery of new uranium and
radioactive trends.

 

The Company entered into a non-binding Letter Of Intent ("LOI") with Terra
Balcanica Resources (CNSX:TERA) regarding disposal of the uranium portfolio,
announced by the Company on  3 April 2024.

 

 

Conclusion

 

Fulcrum's mining assets are a combination of low discovery risk and high
prospectivity in the exploration phase, so Fulcrum stands to be able to add
significantly to the inherent value through exploration and development
success. Fulcrum will continually review opportunities with potential and with
a view to increasing shareholder value. It is the Board's intention to deliver
medium and long-term growth and to establish the Group as a significant
exploration and development company.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DRLBQLFBZELBBBF