REG - Fulcrum Metals PLC - Leaching Results from Phase 1 at Teck-Hughes

Fulcrum MetalsAnnouncement

06/06/2024 07:00

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RNS Number : 2964R  Fulcrum Metals PLC  06 June 2024

Fulcrum Metals plc / EPIC: FMET / Market: AIM / Sector: Mining

 

 

6 June 2024

 

Fulcrum Metals plc

("Fulcrum" or the "Company" or the "Group")

 

 

Strong Initial Leaching Results from Phase 1 Tailings Programme at Teck-Hughes
Gold

 

 Extrakt's technology delivers impressive initial gold recovery rates of up
to 59.4%

 

 

Fulcrum Metals plc (LON: FMET), a company focused on mineral exploration and
development in Canada, is pleased to announce strong initial leaching results
from the Phase 1 sampling and testing programme (the "Programme") using
Extrakt Processing Solutions LLC's ("Extrakt") non-toxic technology at the
Teck-Hughes gold tailings project in Ontario, Canada (the "Project").

Highlights

·    A proportionate mixed composite sample of all six sites grading
0.723g/t Au was submitted for batch leach testing using Extrakt technology for
gold recovery rates (please see announcement dated 7 May 2024).

 

·    Preliminary leaching results from the "as-received" composite sample
(please see announcement dated 7 May 2024) achieves strong initial gold
recovery rates of up to 59.4%.

 

·    Optimisation of operational parameters are underway to achieve
targeted recovery rates beyond 60% focussing on overall efficiency and cost
effectiveness.

 

Ryan Mee, Chief Executive Officer of Fulcrum, commented:

"The success of every tailings project is dependent on the efficiency and
effectiveness of the technology used. I am thrilled with the exceptional gold
grades from our initial sampling and testing programme which are 16.9% higher
than the historical reported average grade, and with Extrakt's non-toxic
technology achieving initial leaching gold recovery rates of over 59%. It is
important to note that no metallurgical studies have been completed at
Teck-Hughes before and that recovery rates from refractory gold without
cyanide or pre-treatment are usually below 40%, so to achieve the recovery
rates that we have on samples with no pre-treatment or re-grinding is
outstanding and hugely encouraging.

"The work undertaken so far provides a compelling pathway to transform mine
tailings from an environmental liability into a sustainable resource by
extracting metals from mine waste through innovative technology.

"I look forward to providing further updates on the leaching test work
optimisation at Teck-Hughes and developing the exciting potential of Fulcrum's
tailings business in Ontario".

 

 

The Phase 1 Programme summary

 

The Programme, which is designed to evaluate the efficiency of Extrakt's
processing technology in recovering gold from the tailings at the Teck-Hughes
Project, has been very successful to date. Sampling and analysis of the gold
content of the tailings produced composite samples for each of the six sites
returning an average weighted grade of 0.717g/t Au which is 16.9% higher
(please see announcement dated 7 May 2024) than historic sampling of the same
sites. Initial leach tests using the Extrakt Technology has reported gold
recovery rates of up to 59.4%, using the as-received composite sample with no
re-grinding.

 

Further leach tests are underway to optimise the operational parameters to
achieve beyond 60% recovery focussing on overall efficiency and cost
effectiveness.

 

 

Licensing discussions with Extrakt

 

The Company announced on 30 November 2023 that, inter alia, it had entered
into a mining option agreement to acquire the Project. Since this
announcement, Fulcrum has been advancing its discussions with Extrakt, a
sustainable technology company which uses separation technology to extract
metals from tailings without the use of cyanide, about the licensing of its
proprietary technology. On 24 January 2024, Fulcrum entered into a phased
study and testing programme for the Project. The company is continuing term
sheet stage discussions in relation to a wider licencing framework in Ontario.

 

The Phased development programme outline

 

Phase 1 - sampling and testing

·    Sampling - complete across six locations chosen to provide
representative sampling across the tailings with 32 samples (totalling 39kg).
The 32 samples were compiled into six individual site composite samples for
testing.

·    Grade and composition testing - the six composite samples were sent
for ICP multielement analysis and gold fire assay at the ISO-17025 accredited
American Assay Laboratories facility in Sparks, Nevada. Results returned an
average weighted gold grade of 0.717g/t Aum which is 16.9% higher (see RNS 7
May 2024) than historic sampling at the same sites. Initial XRD
Semi-Quantitative Analysis of the six samples reports primary tailings
composition comprising quartz - felspar - carbonate. Further detailed XRD
analysis is to be carried out.

 

·    Gold recovery testing - a composite sample across all six sites
grading 0.723g/t Au was then submitted for batch leach testing using Extrakt's
technology for gold recovery rates. The leach test samples were sent to
ISO-17025 accredited American Assay Laboratories facility in Sparks, Nevada
for gold recovery rates analysis. The initial leach tests have reported gold
recovery rates of 59.4%. Further leach tests are underway with further
refinement and optimisation which will then also be submitted to American
Assay Laboratories for the same analysis.

·    Next steps - Further refinement of leach tests with Extrakt
Technology and final report on Phase 1 will be provided. These results will
then feed into the Phase 2 conceptual study.

 

Phase 2 - Conceptual Study

The conceptual study will provide Fulcrum with a first insight into the
project viability using the information developed during Phase 1. According to
the information available, the accuracy level of the study is approximately ±
50%.

 

Phase 3 - Laboratory Test Work

More detailed test work is required to optimize some of the leach parameters
as well as develop necessary scale-up parameters for all the major equipment
of the operation.

 

Phase 4 - Economic Assessment Study

The economic assessment study will provide a more accurate insight into the
project viability using the more detailed test work results for the whole of
the flowsheet. The accuracy of the study is aimed to be at a pre-feasibility
level of ± 30% accuracy level.

 

Teck-Hughes Gold Tailings Project Background

Historic sampling and auger drilling campaigns were conducted at the Project,
the first in 1980 and the most recent between 2018 and 2022 which produced a
non-complaint resource estimate.

 

As part of the most recent campaign, a total of 95 auger samples were
collected and assayed at Actlabs in Timmins. The highest sample assayed
1.73g/tonne Au with 72 of the 95 samples assaying between 0.5 to 0.8 g/tonne
Au. The average was 0.66g/tonne Au.

 

Based on the data from this sampling, along with that of the drill programme
from 1980, an estimate of the tonnage was calculated over the north, west and
northeast arm of the tailings totalling 6,531,300 tonnes of material at
0.66g/tonne Au for 138,460 ounces contained Au. This estimate remains to be
verified by Fulcrum.

 

 

 

Glossary

 

 Item   Definition

 "g/t"  Grams per metric tonne

 "ICP"  Inductively Coupled Plasma - an analytical technique that can be used to
        measure elements at trace levels

 "XRD"  X-Ray Diffraction analysis - a non-destructive technique that provides
        detailed information about the crystallographic structure, chemical
        composition, and physical properties of a material

 

 

Further information

The various historic non-compliant resource estimates cited above have not
been verified by Fulcrum and the tailings body requires detailed follow-up
sampling along with appropriate QAQC and estimation by an independent
qualified resource geologist in order to be able to report a resource
compliant with established resource codes.

 

Qualified Person Statement

The technical information in this announcement has been reviewed by Edward
(Ed) Slowey, BSc, PGeo, technical advisor to Fulcrum Metals Plc. Mr Slowey is
a graduate geologist with more than 40 years' relevant experience in mineral
exploration and mining and a founder member of the Institute of Geologists of
Ireland. Mr Slowey has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration and to the activity
which has been undertaken to qualify as a "Qualified Person" in accordance
with the AIM Rules Guidance Note for Mining and Oil & Gas Companies. Mr
Slowey consents to the inclusion in the announcement of the matters based on
their information in the form and context in which it appears.

 

For further information please visit https://fulcrummetals.com/
(https://fulcrummetals.com/) or contact:

 Fulcrum Metals PLC
 Ryan Mee (Chief Executive Officer)           Via St Brides Partners Limited

 Allenby Capital Limited (Nominated adviser)
 Nick Athanas / George Payne                  Tel: +44 (0) 203 328 5656

 Clear Capital Markets Limited (Broker)
 Bob Roberts                                  Tel: +44 (0) 203 869 6081

 St Brides Partners Ltd (Financial PR)
 Ana Ribeiro / Paul Dulieu                    Tel: +44 (0) 20 7236 1177

 

 

Notes to Editors

 

FULCRUM METALS - BACKGROUND

 

Fulcrum Metals PLC (LON: FMET) is an AIM quoted exploration and development
company which finances and manages exploration projects focused on Canada,
widely recognised as a top mining jurisdiction. Fulcrum's ambition is to
create an environmentally friendly and sustainable tailings and mine waste
business, driving mining change through combining low discovery risk assets
and jurisdictions with transformative technology capable of near-term cash
flow whilst capitalising on a portfolio of highly prospective exploration
assets.

 

Creating an environmentally friendly and sustainable tailings and mine waste
business

 

Through the adoption of potentially industry disruptive technologies to
deliver near-term cash producing assets. Fulcrum has acquired two gold
tailings projects via option agreements, the Teck-Hughes and Sylvanite gold
tailings projects, in the prolific Kirkland Lake gold camp, Ontario. The
projects are within 3km proximity of each other, with non-compliant estimates
of 138,460 ounces of gold and 67,051 ounces of gold respectively, totalling
205,511 ounces, subject to verification by Fulcrum. In addition, Fulcrum is
working on delivering a licensing framework in Ontario with Technology
partners Extrakt Process Solutions and alliance partners Bechtel Engineering.

 

Growth stage gold projects in Ontario

 

Fulcrum has two drill ready gold projects in Ontario.

 

The Big Bear and Jackfish Schreiber - Hemlo properties have a history of
prospecting and localised extraction since the late 19th century. However,
coherent property-level exploration programmes have been limited or absent,
particularly in recent times. The work completed by Fulcrum at Big Bear has
established a gold corridor of 3km in the Schreiber-Pyramid area with high
grade gold in rock samples of up to 45g/t and historical grades of upto
233g/t, developing multiple drill targets and prospects. This trend is open to
the North, East and South for further discovery. Fulcrum has also completed
high resolution geophysical surveys which now fully cover Big Bear,
identifying a further 5 high priority exploration targets for follow-up
investigation. Big Bear is reported to have the potential to host a large,
structurally controlled, stratabound-style banded iron formation (BIF) gold
prospect similar to the Musselwhite deposit (McNicoll et al., 2016), in
addition to an Archean greenstone, orogenic-style lode gold prospect,
extending past the bounds of known historical mineral occurrences.

 

The Tully property is host to a NI 43-101 compliant resource of 107,000 ounces
of gold with high grades reported in 1997 drilling of up to 2,555.5g/t Au over
0.5 metres within a wider intersection of 322.02g/t over 5.7 metres and 2013
drilling by SGX demonstrating potential extension and depth reporting 9.01g/t
Au over 6.7 metres, and 8.0g/t Au over 6.5 metres. Tully is located 30
kilometres northeast of Timmins within the world class Timmins-Porcupine gold
camp that has produced over 70m Oz of gold to date. Tully is 2 kilometres
southwest of the 1.2Moz Bradshaw Gold Project of Gowest Gold Ltd., currently
in development and within 30km of several multi-million ounce historical
deposits including the producing Hoyle Pond gold deposit. Work undertaken by
Fulcrum has identified several drill target locations with the objective of
extending the deposit along strike and at depth.

 

Establish the prospectivity of its wider non-core Ontario and Saskatchewan
portfolio

 

Fulcrum has highly prospective base metal projects in Ontario and Uranium
projects in Saskatchewan for which cost effective exploration methods will be
utilised to evaluate the projects with a view to securing potential joint
venture and/or acquisition interest.

 

Ontario Base Metals - Fulcrum has developed a strong nickel target at Dog Lake
in the Michipicoten Greenstone Belt with several rock samples in excess of
1,000ppm Ni related to a mafic/ultramafic intrusives, a strong copper
exploration target at Carib Creek in the Winston Lake Greenstone belt with
soil sampling surveys returning several strongly anomalous copper samples up
to 737ppm whilst at Tocheri Lake in the Dayohessarah Greenstone belt a
Versatile Time Domain Electromagnetics (VTEM) airborne geophysical survey
conducted over the southwest corner of the property identified a weak
electromagnetic conductor which may indicate buried mineralisation in addition
to several magnetic targets.

 

Saskatchewan Uranium - Fulcrum has amassed a highly prospective uranium
portfolio of over 59,000 hectares across the Charlot-Neely, Fontaine Lake,
Snowbird and South Pendleton claims. All of the projects are outside the
Athabasca basin along major structures, on trend with historic mines and areas
of significant M&A activity. Recent discoveries such as the Arrow
discovery (4.3m tonnes at 0.83% U308) and Triple R discovery (2.7m tonnes at
1.94% U308) have proved the concept of exploring along major structure outside
the Athabasca Basin. Historic records at Charlot-Neely include rock samples of
up to 6.2% U308, trenching samples of up to 2.1% U308 and significant
electromagnetic conductors covering a 16km zone thought to be prospective for
uranium mineralisation. Work completed by Fulcrum at Charlot-Neely and
Fontaine Lake includes hyperspectral data compilation identifying exploration
targets and field work resulting in discovery of high-grade uranium
mineralisation of up to 0.8% U308 and the discovery of new uranium and
radioactive trends.

 

Conclusion

 

Fulcrum's mining assets are a combination of low discovery risk and high
prospectivity in the exploration phase, so Fulcrum stands to be able to add
significantly to the inherent value through exploration and development
success. Fulcrum will continually review opportunities with potential and with
a view to increasing shareholder value. It is the Board's intention to deliver
medium and long-term growth and to establish the Group as a significant
exploration and development company.

 

 

 

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