First Class Metals plc plans to add rare earths elements to its portfolio with three-year options over two properties in northwest Ontario, Canada.
BATHOLITH
Block H and F, covering 18km² and 33km² respectively, lie within “one of the most anomalous REE regions”, as identified in the province-wide lake sediment geochemical database, containing 48,367 samples.
Both blocks are also in the Atikokan area and close to the company’s Sunbeam gold property.
The company has started a review of all available data, before exploration in the Spring on “ground-truthing historic anomalies, validating assays, and refining geological controls on mineralisation”.
First Class noted that some of the database samples come from the White Otter batholith, north of Atikokan.
“The White Otter batholith is a Thorium (Th) high,” said First Class. “Anomalous REE’s in lake sediments in the area are often associated with elevated Th.
“It is possible that the White Otter batholith is a source for REE pegmatites or related mineralisation in the area.
“Block H is in the core of the White Otter REE element anomaly.
“Block F sits astride what is interpreted as a major geological regional fault.
This fault is emphasised by the topography and the anomalous lake sediment results further highlight this prospective feature.
“Satellite imagery of the area also shows possible pegmatite dykes.”
The blocks are also believed to be within the traditional territory of Lac des Mille Lacs First Nation, with which the explorer already has a “constructive working relationship”.
Chief executive officer Marc J. Sale added: “Gold remains the cornerstone of FCM’s exploration strategy and continues to underpin our approach to value accretion to FCM’s Ontario properties.
“However, against a backdrop of accelerating global demand for rare earth elements, and a clear strategic shift by allied governments towards securing critical minerals, the opportunity
presented by these two properties is particularly compelling.
“Their geochemical and geographic location allows FCM to gain meaningful exposure to this evolving sector while maintaining our gold-focused exploration strategy and Ontario focus.”
First Class would pay, over three years, CAD$73,500 cash and $60,000 in ordinary shares in the company to acquire Block F.
Exercise of the option over Block H would be for $67,600 cash and $30,000 in shares, also over three years.
The company aims to rename the blocks, via an online poll, to “enhance stakeholder engagement and market visibility”.
In addition to the two new options, First Class owns seven claim blocks and three further blocks under option.