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First Class Metals signs Kerrs Gold earn-in agreement for resource expansion

22 April 2024 19:09

First Class Metals PLC (LSE:FCM) has recently secured an earn-in agreement for the Kerrs Gold Project, located in Northeastern Ontario and renowned for its historic resource estimate of 386,467 ounces of gold under the NI-43-101 standard.

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Figure 1: Showing the district scale location of the Kerrs gold property as well as significant producing mines in the area

Key highlights

First Class Metals solidified its control over the Kerrs Gold Project by executing an option to purchase agreement with the 100% owners of the Kerr gold property claims.

Situated approximately 90 kilometres east-northeast of Timmins, Ontario, within the renowned Timmins Mining Camp and spanning approximately 665 hectares within the Abitibi Greenstone Gold Belt, the Project benefits from its strategic location.

Its appeal is further heightened by its adjacency to operational mines operated by industry giants like Newmont and McEwan Mining, while accessibility via road and proximity to existing mining infrastructure enhance its attractiveness for exploration and potential development.

Geological insights

Geologically, the Kerrs Gold Deposit is characterised as a stratabound deposit, occurring at the contact of mafic and ultramafic flow sequences.

Gold mineralisation is primarily associated with pyritized quartz vein replacement breccias, offering exploration potential both laterally and at depth. Historical drilling has delineated significant mineralisation, with the deposit remaining open in multiple directions.

Exploration plans

The historical resource estimate of 386,467 ounces of gold, disclosed in accordance with NI 43-101 standards, prompts the company’s objective to review and potentially remodel the resource, aiming to pinpoint high-grade targets for upcoming drilling campaigns.

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Figure 2: at property scale showing the significant historical sampling as well as the drill grid

Additionally, a comprehensive review of historical data and ground appraisal will inform the exploration strategy, with a focus on expanding the resource base and identifying new prospects.

While the Kerrs property is currently not permitted for mining activities, First Class Metals intends to initiate the permitting process post data review and consultation with local First Nations.

CEO commentary

Marc Sale, CEO of First Class Metals, underscored the significance of this agreement, emphasising its role in augmenting the company’s value proposition.

“The signing of this deal signifies two important events for First Class Metals, firstly reinforcing the concept of identifying opportunities to add value then monetise, secondly the potential acquisition of the Kerrs Gold Project catapults First Class Metals from an explorer to a company with a resource.

“Given the continuous rise in gold prices, with new all-time highs being reached, the opportunity to earn into Kerrs Gold is an incredibly appealing proposition for First Class Metals,” he said.

FCM’s London Security Exchange-listed share price is currently trading at 2.87 GBX (07:00 pm UTC+ 8 hours).

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