REG - Panther Metals PLC - Winston: Mine Tailings Investigation Collaboration

Panther MetalsAnnouncement

19/06/2025 07:00

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RNS Number : 4762N  Panther Metals PLC  19 June 2025

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 FOR IMMEDIATE RELEASE

PANTHER METALS PLC

("Panther" or the "Company")

(Incorporated in the Isle of Man with company number 009753V)

19 June 2025

Winston Project: Mine Tailings Investigation Collaboration

Panther Metals Plc (LSE: PALM), the exploration company focused on mineral
projects in Canada, is pleased to announce it has agreed a collaboration
 with London AIM market listed Fulcrum Metals Ltd (AIM: FMET, "Fulcrum") to
investigate the potential commercialisation of the historical mine processing
tailings storage facility located on the Winston Project ("Winston" or the
"Project) in Ontario, Canada.

Fulcrum is a company focussed on the pioneering the use of innovative
technology to recover precious metals from mine tailings at their Teck-Hughes
Gold Tailings Project, in Ontario, Canada.

 

The collaboration underscores both companies' shared vision to responsible
resource management, innovative recovery technologies, and strategic value
creation and is a precursor to an exciting opportunity for both companies to
assess the viability of extracting value from the historical mine processing
tailings located at the Project's Winston Lake Mine site (Figure 1), where the
required access and power infrastructure is already in place (Figure 2).

 

A modern, sustainable approach to mine waste reprocessing and precious metal
capture potentially offers Panther a shorter pathway to significant cashflow,
which could be deployed towards extending the 8.5 year mine life envisaged in
the 2021 mine redevelopment Feasibility Study.(1)

 

Past Production

 

The development of the Winston Lake Mine was commenced in 1986 by Inmet Mining
Limited, and subsequently acquired by First Quantum Minerals Limited. Between
1988 and 1998, a reported 3.3 million tonnes (Mt) of ore was mined and
processed with an average head grade of 14.6% Zn, 1.0% Cu, 32.2g/t Ag and
1.4g/t Au, producing 900 million pounds (Mlbs) or 408 thousand tonnes (kt) of
zinc, 54 Mlbs (24 kt) copper, with over 1.1 Moz silver and 51,168 oz gold at
reported recoveries of 93% zinc and 78% copper. The operation was finally
closed in February 1999 due to a very low zinc price at the time (US$0.42/lb).
(1,2)

 

Darren Hazelwood, Chief Executive Officer, commented:

"This collaboration is the first step in investigating a potential early
source of positive cashflow for Panther at the Winston Project. The
infrastructure is well maintained on the brownfield Winston Lake mine site
allowing for the potential rapid evaluation and monetisation of the historical
mine processing tailings.

Working with Fulcrum Metals, who are advancing mine-tailings reprocessing
project elsewhere in Ontario, we intend to explore innovative ways to generate
additional value and potentially extend the life of our flagship project. It's
a strong step forward in our mission to build a sustainable and profitable
future for our shareholders."

Ryan Mee, CEO of Fulcrum Metals Ltd, added:

"We're excited to be collaborating with Panther Metals on this promising
opportunity. Fulcrum brings advanced extraction and separation technology to
the table through its relationship with Extrakt Process Solutions, which
offers cyanide free and environmentally sensitive hydrometallurgical
techniques designed to recover critical and precious metals from legacy
tailings. This aligns perfectly with our focus on unlocking overlooked value
and accelerating resource recovery in a responsible way."

The collaboration envisages setting out a formal agreement for an initial
phase of a partnership which would focus on technical and economic assessments
of the tailings material. Subject to the results of that evaluation, Panther
and Fulcrum would formalise a commercial agreement to advance a tailings
pre-processing project.

Key Highlights:

·      The collaboration to agree terms for a strategic partnership
between Panther Metals and Fulcrum Metals to evaluate the Winston tailings
storage facility.

·      Application of modern hydrometallurgical extraction technology to
maximise recovery while minimising environmental impact

·      Low-cost, high-impact opportunity with upside potential for both
parties.

·      Supports long-term sustainability goals through reprocessing of
legacy materials

·      All infrastructure well maintained and in place for rapid
execution of the opportunity should it exist.

This development underscores both companies' shared commitment to responsible
resource management, innovative recovery technologies, and strategic value
creation.

Figure 1: Location of Winston Lake Project, Ontario, Canada

 

 

Figure 2: Winston Lake Minesite Infrastructure including Plant Site, Tailings
and Water Storage Facilities (2)

 

Technical References

1.     NI 43-101 Technical Report Feasibility Study for the Superior Zinc
and Copper Project, dated 13 October 2021, prepared for Metallum Resources Inc
by DRA Global ("DRA").

 

2.     Ontario Ministry of Mines Record ID MDI42D14NW00015. Schnieders et
al, 1999. OFR5989, Report of Activities 1998, p. 5 (
https://www.geologyontario.mines.gov.on.ca/persistent-linking?mineral-inventory=MDI42D14NW00015
(https://www.geologyontario.mines.gov.on.ca/persistent-linking?mineral-inventory=MDI42D14NW00015)
)

 

Competent Person Statement

Technical information in this announcement has been reviewed by Nicholas
O'Reilly BSc (Hons) MSc DIC MIMMM QMR MAusIMM FGS, a director of the
Company. Mr O'Reilly is principal geologist and a director of Mining
Analyst Consulting Ltd. He has over 20 years' experience in mining,
exploration and development across all major commodities. As a qualified
geologist, he can act as Competent Person for JORC Code and UK Listing Rules
purposes.

The person who arranged for the release of this information is Darren
Hazelwood, the Company's Chief Executive Officer.

For further information, please contact:

Panther Metals PLC:

Darren Hazelwood, Chief Executive Officer:            +44(0) 1462
429 743

 
                                                             +44(0)
7971 957 685

Broker:

SI Capital Limited

Nick Emerson
                         +44(0) 1438 416 500

Winston Project

The Panther Metals Winston Project, located 50 km east of Thunder Bay,
Ontario, Canada, is an advanced stage polymetallic zinc, copper and precious
metal property comprising a high-grade critical mineral mine redevelopment and
resource building opportunity. Based on a Feasibility Study published in 2021
the Project is expected to generate average life of mine ("LOM") annual EBITDA
of C$67.64 million (M) and have a pre-tax NPV(8%) of C$ 175.8 M and IRR of
26%, with further strong exploration potential for defining additional Mineral
Resources and Mineral Reserves from the two main deposits as well as
additional near-mine volcanogenic massive sulphide ("VMS") exploration
targets.

2021 Feasibility Study Headline Metrics

·      NPV(8%):             C$175.8M pre-tax, assuming zinc
priced at US$2,700/t, copper at US$7,300/t,
gold at US$1,635/oz & silver at US$21/oz. At a derisked 6%
discount                             Pre-tax NPV =
C$213.2M.

·      IRR:                  26% pre-tax

·      EBITDA :          C$574.9M (gross), C$67.64M (annual).
Gross revenue: C$983.3M

·      CAPEX:            C$145.1 M

·      OPEX:              C$65.17/t

·      LOM:                Initial 8.5 year life of mine,
with 3.5 year pay-back period. Strong potential to increase LOM.

·      Producing an average 33.40ktpa contained zinc,1.3ktpa contained
copper, 698oz recovered gold and 90.8koz recovered silver (after ramp-up),
from an onsite processing facility with an annualised 326ktpa capacity.

·      The unit pricing for copper, gold and silver, concentrate payable
percentages and exchange rates, are positively different from 2021 in today's
dollars, providing scope for additional value uplift.

·      Indicated Resource 2.07 Million Tonnes @ 18% Zn

·      Volcanogenic Massive Sulphide mineralisation well understood by
Panther.

·      Panther plans to build value through extending the mine life
utilising the Company's strong local exploration network and leveraging
institutional, governmental and critical mineral programme support.

·      No name discussions in Canada have indicated strong support for
this deal on an asset base previously supported by industry heavyweights,
including Sprott.

·      Strong prospects to increase Mineral Resources and Mineral
Reserves through exploration down-dip and along strike of the current
Resources.

·      Zinc and Copper deemed Critical Minerals in Canada, eligible for
enhanced tax-efficient flow-through funding.

·      Positive First Nation engagement.

·      Strong Institutional and Governmental support for future
financing options.

·      Existing historical tailings storage facility offers potential
for near-term cash-flow subject to further studies.

Highly prospective near mine exploration targets include the Pick Lake Deposit
which is not fully constrained and is considered to be open down-plunge; the
Winston Lake Deposit where there are strong electromagnetic ("EM") geophysics
conductive bodies adjacent to the current Resource; and in the vicinity of
historical Zenith deposit.  The wider project area is relatively
underexplored and there are several prospective surface zinc targets,
including Anderson, Trial and Ciglen, and the VMS hosting horizons along
strike strongly warranting geophysical investigation.

The 2021 Feasibility Study(1) for the Winston Project detailed a strong
economic case for mine redevelopment for a 1,000 tonnes per day underground
operation with a net present value (NPV(8%)) of C$171.5M and pre-tax internal
rate of return (IRR) of 26% based on an Ore Reserve of 1.96Mt @ 13.9% Zn, 0.6%
Cu with significant gold and silver credits (Table 1) producing an expected
69.8 thousand tonnes per year (ktpa) of zinc concentrate and 5.3 ktpa of
copper concentrate over an initial 8.5 year mine life. The Project boasts a
high-grade CIM compliant Indicated Mineral Resource(2) of 2.07Mt averaging
17.9% zinc, 0.8% copper, 0.4 g/t gold, and 34 g/t silver plus Inferred 0.27Mt
@ 16.2% Zn, 1.0% Cu, 0.3g/t Au & 37.2g/t Ag (Table 2).  Project is
located only 20km from the trans-Canada highway and infrastructure including
power, tailings storage facility, transport links and underground development
are already in place. The previous mining operation closed in February 1999
due to very low zinc prices at the time. In total, 3.4 million tonnes grading
1.0% copper and 16% zinc was mined and processed. The total project area
covers approximately 60.4km(2) and comprises both patented freehold, leased
and Crown-land mining claims.

Table 1: Winston Project Mineral Reserve

 Winston   Ore Reserve     Million  Zinc    Copper  Gold      Silver

 Project                   Tonnes   Grade   Grade   Grade     Grade
           Classification  (Mt)     (Zn %)  (Cu %)  (Au g/t)  (Ag g/t)
           Proven          -        -       -       -         -
           Probable        1.96     13.9    0.6     0.2       26.2
           Total           1.96     13.9    0.6     0.2       26.2

Notes: JORC (2012) compliant Mineral Reserve effective date 5 July 2019. Ore
Reserves are based solely on Indicated Mineral Resources and are reported
above an average net smelter return (NSR) cut-off grade of US$98 /t equivalent
to 5.2% Zn. (1)

Table 2: Winston Project Mineral Resource Estimate at 3% Zn cut-off grade

 Resource Areas   Mineral Resource Classification  Million  Zinc    Copper  Gold      Silver

                                                   Tonnes   Grade   Grade   Grade     Grade
                  (Mt)                                      (Zn %)  (Cu %)  (Au g/t)  (Ag g/t)
 Pick             Indicated                        1.78     19.20   0.90    0.3       36.1

 Lake
                  Inferred                         0.27     16.40   1.00    0.3       38
 Winston          Indicated                        0.29     10.40   0.70    0.9       18.4

 Lake
                  Inferred                         0.01     8.90    0.60    0.5       11.9
 Winston Project  Total                            2.07     17.90   0.80    0.4       33.6

                  Indicated
                  Total                            0.27     16.20   1.00    0.3       37.2

                  Inferred

Notes: Effective date 15 October 2020. Stated at 3% zinc cut-off grade.
Mineral Resource estimate is compliant with the Canadian Institute of Mining,
Metallurgy and Petroleum ("CIM"), CIM Standards on Mineral Resources and
Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on
Reserve Definitions. Mineral resources which are not mineral reserves do not
have demonstrated economic viability. There has been insufficient exploration
to define the inferred resources tabulated above as an indicated or measured
mineral resource, however, it is reasonably expected that the majority of the
Inferred Mineral Resources could be upgraded to Indicated Mineral Resources
with continued exploration.

Technical References:

1              NI 43-101 Technical Report Feasibility Study for
the Superior Zinc and Copper Project, dated 13 October 2021, prepared for
Metallum Resources Inc by DRA Global ("DRA").

 

2              NI 43-101 Technical Report on the Mineral Resource
Estimation of the Pick Lake and Winston Lake Properties, Ontario, Canada,
dated 15 October 2020, prepared for CROPS Inc. (renamed Metallum Resources
Inc) by MASSA Geoservices.

 

Obonga Project - Expanding Canada's Next VMS and Critical Minerals District

Panther Metals' Obonga Project in Ontario continues to demonstrate significant
potential as a leading exploration initiative targeting both base and critical
minerals. Since acquiring the Obonga Greenstone Belt in July 2021, the Company
has rapidly advanced five high-priority targets: Wishbone, Awkward, Survey,
Ottertooth, and Silver Rim.

In June 2024, Panther secured a key Exploration Permit for the Wishbone
Prospect, valid through 2027, authorizing extensive drilling and geophysical
surveys. Previous campaigns confirmed compelling volcanogenic massive sulphide
(VMS)-style mineralisation, highlighted by intercepts such as 27.3m of massive
sulphide and 51m of sulphide-dominated mineralisation with multiple
mineralised lenses. High-grade copper anomalies in lake sediment further
enhance the prospectivity of this landmark target.

July 2024 saw Panther awarded an Exploration Permit for Awkward West,
supporting an aggressive exploration program including up to 31 drill holes.
Historic drilling here revealed notable graphite mineralisation-27.2m at 2.25%
Total Graphitic Carbon (TGC) with zones exceeding 5% TGC-alongside promising
signs of nickel, copper, and platinum group elements, aligning with Panther's
strategic focus on critical minerals.

Additional exploration efforts include high-resolution magnetic geophysical
surveys across key prospects, optimizing drill targeting and advancing the
geological model. Survey and Ottertooth remain highly prospective, with
multiple magnetic and electromagnetic anomalies and historic intercepts of
massive sulphides, many targets still largely untested.

Obonga's combination of VMS-style base metals and critical mineral potential,
situated in a stable and mining-friendly jurisdiction with strong
infrastructure, positions Panther Metals to unlock a district-scale mineral
system with significant commercial upside.

 

Dotted Lake Project - Hemlo-Adjacent Gold Opportunity with Growing Momentum

Panther Metals' Dotted Lake Project, acquired in July 2020, lies just 16km
from Barrick Gold's renowned Hemlo Mine, in one of Canada's premier
gold-producing regions. The project offers a strategically located and
scalable gold exploration play.

Initial soil sampling in 2021 identified numerous gold and base metal targets,
and subsequent access improvements facilitated an initial drilling program
that confirmed gold mineralisation with anomalous values extending along
strike.

In early 2025, Panther completed a follow-up campaign featuring detailed
geological mapping, trenching, and targeted diamond drilling. These efforts
extended mineralisation both laterally and at depth, identified new structural
controls, and reinforced the potential for a broader, high-grade gold system.
Multiple zones have been prioritised for expanded drilling, underscoring
Dotted Lake's significant upside.

The project's proximity to established infrastructure and Hemlo's extensive
mining operations, combined with robust recent results, makes Dotted Lake a
key asset in Panther's growth portfolio.

Commercial Strategy - Discovery-Driven Value Creation

Panther Metals is committed to creating substantial shareholder value through
focused exploration and disciplined capital management. The Company combines
deep geological expertise with an understanding of market and financing
dynamics to advance high-potential projects efficiently.

With access to a global network of industry leaders and a rigorous operational
focus on drilling, Panther prioritises activities that directly contribute to
discovery and resource growth. The drill hole remains the ultimate validation
in mineral exploration, and Panther's strategy is to fast-track world-class
targets into drill-ready assets - delivering tangible results that underpin
long-term value creation for shareholders.

 

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