First Class Metals – FY23 Results and Plans for H2 and Beyond

First Class Metals PLC has published its FY23 results. FY23 saw First Class Metals advance its existing exploration projects, acquire six new exploration permits and demonstrate its commitment to corporate social responsibility by signing agreements with four different First Nations.

Key Financials

• Loss before tax increased to ￡1.6 million in FY23 from ￡0.7 million in FY22
• Net debt totalled ￡0.02 million in FY23 compared to net cash of ￡0.49 million in FY22.
• Post period end the company has secured c. ￡730,000 in non-dilutive financing from four different funding sources including a C$200,000 grant from the Ontario Junior Exploration Programme, a $212,780 tax credit, ￡270,000 from the sale of the McKellar & Enable Properties and a ￡230,000 secured loan.

FY23 a year of progress

At the Zigzag Lithium Property, First Class Metals completed trenching and drilling programmes, demonstrating the presence of significant bodies of lithium mineralisation with assay results including:

• 5.5 meters at a grade of 2.35% Li2O (Channel 7)
• 2.0 meters at a grade of 1.96% Li2O (Channel 6)
• 4.3 meters at an average grade of 1.65% Li2O from a depth of 12.7 meters (ZIG-23-01)
• 5.0 meters at an average grade of 1.50% Li2O from a depth of 15.0 meters (ZIG-23-02)
• 3.0 meters at an average grade of 1.28% Li2O from a depth of 65.5 meters (ZIG-23-08)

At the Sunbeam Gold Property, a programme of stripping was completed at the Roy Prospect returning high-grade assay results, including:

• 18.8 g/t gold (Au) over 0.3 meters
• 6.27 g/t Au over 0.35 meters
• 4.98 g/t Au over 0.5 meters
• 5.58 g/t Au over 0.5 meters

The presence of gold mineralisation was also confirmed at the North Hemlo and Esa Properties with initial exploration returning some interesting results. At North Hemlo a magnetic survey also defined several linear anomalies throughout the property that form new exploration targets, these targets include the possible intersection of north-south and northwest structures.

Looking ahead to H2 2024 and beyond

First Class Metals has a portfolio of ten exploration projects in a variety of commodities, including; gold, lithium, nickel, copper, zinc, molybdenum, and rare earth elements (REE) all located in Ontario, Canada.

With a focus on a low geopolitical risk jurisdiction with an established mining industry and a diverse portfolio with exposure to different commodities, First Class Metals is reducing many of the risks associated with junior exploration companies. Going forward we would expect to see the company focus on its more advanced exploration projects, with initial work continuing to be completed on the early-stage projects.

At the Sunbeam Property, the Company plans to focus its exploration activities around the discovery of gold within the sheared and altered porphyry. This represents a new target for gold mineralisation at the project, where historic production came from the high-grade vein system hosted in mafic schist.

At the North Hemlo Property, First Class Metals is expected to start more detailed prospecting along the 3 km long gold trend, to test the continuity of the structure along strike from existing gold occurrences. This target refinement work is likely to lead to a programme of stripping, trenching and drilling.

At the Esa Property, the company expects to be able to follow up on the 4.5km long anomaly with additional trenching and stripping.

Alongside these extensive exploration programmes at the more advanced projects, we would anticipate news flow from the company’s early-stage exploration projects and we would also expect to see the company continue to be transactionally active, with further acquisitions, potential joint ventures, and partial and full divestments.

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Disclaimer

This newsletter has been published by Mining and Metals Research Corporation (“the Company”). The information used to compile the article has been collected from publicly available sources and the Company cannot guarantee the 100% accuracy of those sources. This communication is intended for information purposes only and does not constitute an offer, recommendation, solicitation, to make any investments.? Nothing in this communication constitutes investment, legal accounting or tax advice, a personal recommendation for any specific investor. The Company do not accept liability for loss arising from the use of this communication. This communication is not directed to any person in any jurisdiction where, by reason of that person's nationality, residence or otherwise, such communications are prohibited. The Company may derive fees from the production of this newsletter.

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