First Class Metals (LSE: FCM) continue to demonstrate its determination to uncover Canada’s battery metal bounty, with the explorer having entered into an earn-in agreement with OnGold Investment Corp to earn up to 80 per cent of the Pickle Lake Ni-Cu Project.
Growing Canadian Ground
Covering 3,455 hectares over 163 single mining claims, Pickle Lake is located contiguous to First Class Metals’ flagship North Hemlo Property and sits immediately north of the West Pickle Lake Nickel (Ni) Copper (Cu) discovery, which shows grades up to 10.4% Ni & 3.4% Cu over 2.3m.
The Project already hosts eleven high-priority targets that were identified by the work of previous operators, most of which focussed on several discreet magnetic anomalies thought to be associated with Ni-Cu-PGE mineralised mafic-ultramafic intrusions, with these instructions serving as the basis for nickel-sulphide discoveries in the surrounding area like RJ and Pickle Lake West.
While still in its early stages, Pickle Lake looks to be a strong addition to the Company’s already extensive Canadian battery metal portfolio and will well complement its other battery metal holdings such as the Zigzag Lithium Project which recently showed lithium values up to 1.00% Li2O and tantalum up to 198 ppm.
Due diligence work done by First Class Metals earlier this year also revealed the Project’s golden potential, with a winter sediment sampling program undertaken across the Project returning gold grades of up to 103ppb gold which is deemed to be extremely high for the wider area.
First Class Metals is now putting together an exploration program for the promising area and will be well-funded to hit the ground running, having raised £1.04 million recently to accelerate exploration activities as it works to drill at least one of its Canadian projects by the end of this field season.
The earn-in deal will allow First Class Metals to earn up to an 80 per cent interest in the Pickle Lake property through the payment of 1,000,000 shares of First Class Metals shares to be issued to On-Gold by the end of October and by fulfilling a work commitment of $300,000 over a three-year term.
Once the terms of the earn-in deal are completed, the two companies will form a joint venture over the Project.
The Company said that the earn-in deal substantially increases its footprint in the area.
“I am very pleased with this acquisition which has significantly increased our area of exploration, not only because it is contiguous to North Hemlo, but also for its proximity to West Pickle Lake and also the significant gold assay in the lake sediment sample,” Chief Executive Marc Sale said.
“Furthermore a share-issue deal for such an asset further confirms the industries confidence in our ability to deliver success. FCM will now formulate an exploration programme to follow on from the excellent work by OnGold.”
FCM’s London Stock Exchange-listed share price is currently selling at 10.25 pence (1:32 pm UTC+ 8 hours).