Audited Annual Results for Year Ended 31 December 2023
First Class Metals PLC the UK listed metals exploration company seeking economic metal discoveries across its extensive Canadian, focused in northern Ontario land holdings is pleased to announce its audited annual results for the year ended 31 December 2023.
The Annual Report and Financial Statements for the year ended 31 December 2023 will shortly be available on the Company’s website at www.firstclassmetalsplc.com. A copy of the Annual Report and Financial Statements will also be uploaded to the National Storage Mechanism where it will be available for viewing at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
HIGHLIGHTS
A summary of the company’s highlights for the year 2023 follows:
Corporate
· 26th June 2023 – The Company raised £1,049,170 raised via an oversubscribed placing, subscription, and warrant conversion through the issuing of 9,974,000 shares (placing & subscription) and 375,000 shares warrant conversion all at 10p per share.
· 16th October 2023 – The Company appointed of Andrew Williamson as a Non-Executive Director.
· 24th November 2023 – The Company raised £603,000 via a placing through a directors share loan of 11,990,665 shares at 6p per share.
Exploration and Operations
· The Company obtained 6 exploration Permits granted on its North Hemlo, Sunbeam, Zigzag, Esa McKellar and Enable properties.
· The Company signed agreement with four First Nations being: Whitesand First Nation, Lac Des Mille Lac First Nation, Lac La Croix First Nation, and Netmizaaggamig Nishnaabeg First Nation.
· There was confirmation of 19g/t gold assays at the North Hemlo property.
· The Company completed a successful stripping programme at Sunbeam with high grade results.
· The results of a soil sampling programme conducted confirms robust gold anomaly at Esa.
· The Company completed channel sampling and drilling at the Zigzag property.
Post-Period
· Quinlan
The Company entered into an exclusivity agreement with Broken Rock Resources (‘BRR’) which was consolidated into an Option agreement on March 20, 2024. The Quinlan property contains 98 claims with FCM staking 50 claims and 48 claims being optioned from BRR. The Agreement with BRR required an execution payment of CAD$10,000 in cash and CAD$15,000 in FCM shares. The property contains a significant lithium anomaly in a lake sediment sample collected by the Ontario Geological Survey (OGS). The contractual work requirement for year 1 on the property is a sum of CAD$50,000.
Full details of the Agreement were in RNS of March 21, 2024.
· Kerrs Gold
The Company entered into an exclusivity agreement with (1544230 Ontario Inc. and Gravel Ridge Resources) for a sum of CAD$ 5,000, and this was consolidated into an Option agreement on April 21, 2024. The property contains 36 single cell mining claims, totalling approximately 665 hectares and lies 90 kilometres east-northeast of Timmins Mining Camp.
The Kerrs Gold Project contains a historical NI43-101 compliant resource (2011), of 386,467 Oz Au.
Full details of the Agreement were in RNS of April 22, 2024.
· McInnes Lake
In March 2024, the Company entered into an exclusivity agreement with Emerald Geological Services (‘EGS’) in order to acquire certain mining claims. The Company is progressing due diligence on these claims with the intention of entering into an option agreement which would grant the Company rights to acquire these claims in a staged manner.
· OJEP
In addition to the CAD$ 200,000 received by the Company in 2023, The Company received a further CAD$200,000 OJEP Grant from the Canadian Ministry of Mines for the Zigzag lithium & critical metals property for work completed during 2023 in April 2024. The receipt of the cash credit for the 2023 Zigzag OJEP Grant was received in April 2024 but is accounted for within the 2023 financials.
· McKellar and Enable divestment to the 79th GRP Limited
In June 2024, an agreement was reached with the 79th GRP Limited to sell 100% of the McKellar and Enable projects. The combined sale price is GBP £270,000
· Term Loan with the 79th GRP Limited
In addition to the ‘McKellar and Enable’ assets sale, FCM has entered into a £230,000 working capital term loan with eh 79th GRP Limited in May 2024.
CHAIRMAN’S STATEMENT
For the Year Ended 31 December 2023
Dear Shareholders,
I am pleased to present the Chairman’s statement for the year 2023, a year that has seen exciting developments and notable achievements for First Class Metals (FCM).
Throughout the year, we have made significant progress, starting with the initial discovery at Dead Otter (North Hemlo). This discovery has opened up new opportunities for further development of the North Hemlo property. We are optimistic about the potential that this project holds for FCM’s future.
In late 2022, we completed the strategic acquisition of Sunbeam, which has proven to be a positive move for FCM. During 2023, we have made substantial strides in advancing the development of Sunbeam, which has shown great potential for our overall growth trajectory. We are enthusiastic about the continued progress of this project.
We have also further advanced the Zigzag Lithium/Critical Metals property, which adds value to our portfolio of prospects. FCM’s carefully selected property assets in northwest Ontario, Canada-known for its favourable mining conditions-provide us with a strong foundation for exploration. We remain focused on gold, semi-precious metals, and battery metals critical to the evolving energy storage and power generation sectors.
At present, FCM maintains exposure to ten exploration projects, each showcasing potential in a variety of commodities such as gold, lithium, nickel, copper, zinc, molybdenum, and rare earth elements (REE). This diversification positions us for growth and establishes FCM as a relevant player in the exploration industry.
In January 2023, FCM proudly announced the discovery of a noteworthy gold and molybdenum trend on the North Hemlo (Dead Otter Trend) extending over 3 kilometres. This discovery had several gold assays exceeding 1 g/t, with the highest recorded at an impressive 19.6 g/t. We believe this discovery to be one of the highest occurrences of gold on the Northern portion of the Hemlo area. Subsequent work conducted throughout 2023 further supported and reinforced the potential of this expanding discovery.
In June, FCM engaged in extensive consultations with our First Nation partners, which culminated in the submission of exploration permit applications for North Hemlo and Esa to the Ontario Ministry of Mines. These applications sought permission for invasive exploration methods such as drilling, mechanical stripping, and trenching on the properties. We are pleased to announce that in November, both permits were granted approval, representing a significant milestone for FCM. This achievement signifies that both properties have achieved a drill-ready status, with the necessary permits in place to facilitate further exploration activities.
We successfully raised £1,049,170 @ 10p per share with a broker led placing alongside a private subscription (Directors Purchase of £37,500 by Marc Sale CEO) and a warrant conversion in late June 2023. The funds were used to further develop the company’s exploration activities across its portfolio.
In the second half of 2023 exploration commenced on the Zigzag property with an initial grab sample campaign which produced a successful first pass of exploration over the property with multiple samples reporting +1% Lithium. This focussed work started to define a 400m ‘core’ zone of interest. FCM returned to complete a channel sampling campaign in early autumn. The results from the channels were announced in November. Again, a significant number of the channels returned samples of +1% Lithium with an outstanding highlight of 2.36% lithium (Li2O) over 5.5m.
In late December 2023, FCM commenced its inaugural drill program with a 500m diamond drill program focused on the core zone at Zigzag. Results announced in February exceeded all expectations. Numerous intercepts over 1% lithium with some very interesting elevated critical/technology metal grades in Rubidium, Tantalum & Caesium.
We successfully completed a second broker led fundraising of 2023 in November raising £603,000, the funds supported the company working capital position and allowed repayment of the Sanderson Capital Partners outstanding £500,000 convertible loan note (Sanderson CLN).
We have through 2023 developed the business to a point at which the portfolio may be rapidly commercialised via sale or JV/Earn in:
· Zigzag Lithium and Critical Metals: successfully drilled and open on strike and depth with a second potential trend identified to the South. The property is fully permitted and is located in a prime location, sat between several developing lithium projects on the Seymour/Falcon Lake lithium belt. A large hydro scheme at Jackfish River 7km south of Zigzag Lake is under consultation and there are numerous advanced stage studies from other project developers for construction of key infrastructure including a spodumene benefaction plant at Seymour Lake (Green Technology Metals Limited ASX:GT1).
· North Hemlo: the Dead Otter Trend was extensively worked in 2023 with further encouraging results. The granting of the exploration permits further enhances the prospects of the property and we look forward to carrying out more invasive exploration in 2024.
· Esa: soil sampling results in 2023 gave further credence to the ‘Esa Shear Zone’ theory which is a 4.5km trend with anomalous gold and pathfinder finder elements present. A limited stripping program in November will be followed up in 2024.
· Sunbeam: early season prospecting helped gain a more in-depth geological knowledge of the property and the wider ‘English Option’ ground. This was followed up by two stripping and channel sampling campaigns around the historical workings of the Sunbeam Mine, Roy, and Pettigrew shafts.
Results from the channel sampling across all three sites peaked at 18.8 g/5 Au at Roy with multiple results above 1 g/t across the sample locations. Pleasingly up to 4.98g/t Au was discovered in the porphyry at Roy. Significantly the discovery of gold within the sheared and altered porphyry could add significant upside to what was thought to be predominantly a high-grade vein system hosted in mafic schist, from which the known historic production was mined. This will form a focus for future exploration activity in 2024.
We are continuously evaluating and advancing various strategies to enhance the value of our portfolio and ensure the sustainable growth of the company.
To this end, we are exploring potential joint ventures, partial divestments, or even project sales that align with our objective of maximizing value within the shortest possible timeframe. Our board of directors is fully committed to exploring innovative ways to unlock the full potential of our assets and capitalize on strategic opportunities as they arise.
With the recent addition of the Quinlan, and the Kerr Gold properties (also the potential addition of the McInnes Lake property), we have achieved a well-balanced portfolio that provides us with multiple options for divestment and renewed focus on developing the next set of promising prospects. This strategic balance enables us to navigate the market dynamics effectively and strategically allocate our resources for sustained growth.
We understand that adaptability and flexibility are key to success in the ever-evolving metals exploration industry. By actively assessing our options and making informed decisions, we are positioning FCM to capitalise on opportunities and drive value creation for our shareholders.
The activities undertaken by First Class Metals (FCM) during the period have been very positive, and we would like to extend our thanks to our dedicated exploration teams in Canada led by Emerald Geological Services for their unwavering drive and determination.
The momentum generated during this period will continue to be a central pillar of our overall strategy moving forward. As we look ahead, we are excited to build upon this strategy in the coming year. Our priority is to provide our shareholders with a clear and well-defined vision for the future development pathway of our substantially advanced exploration project pipeline. We recognize the importance of transparent communication and are committed to keeping our shareholders well-informed about our progress and strategic goals.
Our team remains dedicated to delivering sustainable growth and striving for excellence in all aspects of our operations. By prioritising disciplined exploration, responsible exploration practices, and prudent portfolio management, we are confident in our ability to deliver long-term value to our shareholders.
James Knowles
Chairman
For further information, please contact:
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James Knowles, Executive Chairman |
07488 362641 |
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Marc J Sale, CEO |
07711 093532 |
