Press Release, First Energy Metals Acquires Subsequent Lithium Property Near Augustus Project in Quebec, Canada
VANCOUVER, BC, Feb. 8, 2021 /CNW/ - First Energy Metals Ltd. (CSE: FE) ("First Energy" or the "Company) is pleased to announce that it has entered into an option agreement to acquire another lithium exploration property located in Landrienne & Lacorne-Townships, Quebec, Canada. The property consists of 15 mining claims in two non-contiguous claim groups representing a total area of 671.58 hectares located approximately 40 kilometres northwest of the town of Val d'Or on map sheet 32C/05. The newly acquired claims are located to the west and south of the Augustus Lithium Property claims which were optioned in January 2021 (see Company's news release dated Jan 21, 2021).
Property Highlights
- Of particular interest on this new acquisition is claim CDC-2196058 (Range 1 Lot 25) which hosts a part of the historical Canadian Lithium Prospect which extends to the west from the Augustus claim CDC-2427519.
- The Canadian lithium prospect is a worked deposit located in Range 1 lot 25-26 in the Landrienne Township at G.P.S 284861 E - 5368288 N. The main outcrop was discovered in 1948 near the boundary line separating the Landrienne and Lacorne Townships. A group of parallel pegmatite dykes associated with Lacorne Batholith contains aggregates of spodumene, lepidolite, quartz and feldspar accompanied by traces of beryl, clevelandite, colombo-tantalite.
- Historical drilling in 1955 on claim CDC-2196058 documented on the Quebec Ministry of Energy and Natural Resources (MERN) database indicate a total of 12 drill holes with a cumulative drilling 1,454 metres indicating extension of Canadian Lithium deposit to the west on this newly acquired claim. Additionally, fourteen historical drill holes documented on the Canadian Lithium Prospect located on the adjoining Augustus claim have already been reported in the Company's news release dated February 02, 2021.
- Highlights of the historical drilling results are provided below (also see Table 1):
- Drilling results show several large low grade lithium pegmatite intercepts ranging in width from 5.73 meters (m) to 84.94m with lithium grades 0.11% lithium oxide (Li2O) to 0.38% Li2O.
- The low-grade pegmatites are intersected by high grade spodumene bearing lithium pegmatites with grades in the range of 1.2% Li2O to 2.3% Li2O and widths in the range of 0.46m to 6.55m (Source Reports GM03952 and GM00744).
Cautionary Statement: Investors are cautioned that the above information is taken from the publicly available sources. The Company has not been able to independently verify the information contained. The information is not necessarily indicative of the mineralization on the Property, which is the subject of this news release. The Company will need to conduct exploration to confirm historical mineralization reported on the property and there is no guarantee that significant discovery will be made as a result of its exploration efforts.
Table 1: Summary of historical drill holes results (Source: Report GM03952)
Hole ID | Depth | Depth | Total | Lithium |
m | m | m | Li2O % | |
CL-39 | 8.84 | 52.73 | 43.89 | 0.318 |
Including | 17.62 | 21.7 | 4.08 | 1.2 |
and | 30.48 | 30.94 | 0.46 | 2.3 |
CL-40 | 30.72 | 32.55 | 1.83 | 1.9 |
CL-41 | 35.42 | 41.15 | 5.73 | 0.11 |
45.84 | 47.55 | 1.71 | 2.25 | |
CL-44 | 34.5 | 119.45 | 84.95 | 0.16 |
Including | 37.18 | 39.16 | 1.98 | 1.24 |
and | 80.49 | 81.35 | 0.86 | 1.14 |
and | 102.65 | 103.32 | 0.67 | 1.22 |
CL-46 | 15 | 18.84 | 3.84 | 1.8 |
20.57 | 37.03 | 16.46 | 0.6 | |
Including | 30.48 | 37.03 | 6.55 | 1.2 |
38.59 | 74.73 | 36.14 | 0.13 | |
Including | 39.07 | 39.77 | 0.7 | 1.94 |
CL-49 | 95.37 | 119.2 | 23.83 | 0.16 |
Including | 108.78 | 109.72 | 0.94 | 1.5 |
CL-56 | 105.76 | 120.36 | 14.6 | 0.24 |
Note: Reported intersections are drilled intervals and true widths have not been calculated | ||||
Gurminder Sangha, CEO of First Energy Metals stated that, "We are pleased to acquire additional lithium exploration claims in the Augustus Lithium Property area. Now the Company's claim area completely covers the historical Canadian Lithium Prospect with 2,398 m diamond drilling performed in 26 drill holes. With a total of over 12,000 metres drilling in 74 drill holes over the entire property gives a wealth of data to make future exploration plans. We feel the new acquisition in the growing lithium market will assist with creating value for both current and prospective shareholders.
Transaction Details:
Pursuant to a property purchase agreement between the Optionor (Mr. Glenn Griesbach) and the Company, dated February 3rd, 2021 (the "Effective Date"), First Energy holds an option to acquire a 100% interest in the Property by making cash payments and common shares issuances as follows:
(a) | the Optionee making the following cash payments to the Optionor: | |
(i) | $15,000 to be paid on the Effective Date; | |
(ii) | $20,000 to be paid upon the first anniversary of the Effective Date; | |
(iii) | An additional $25,000 on or before the second anniversary of the Effective Date; | |
(b) | The Optionee allotting and issuing the following common shares in its capital stock to the Optionor subject to the approval of the regulatory bodies as follows: | |
(i) | 325,000 shares issued upon the Execution of the option Agreement. | |
(ii) | An additional 250,000 shares issued on or before the date of being one year from signing the agreement. | |
(iii) | An additional 300,000 shares issued on or before the date of being two years from signing the agreement. | |
The Optionor will retain a 2.0 % NSR from any future production.
This above noted agreement is with a non-related party and there are no directors, officers or senior management in common. Closing of the Transaction is subject to obtaining all required approvals, including the CSE and including any other regulatory approval.
Afzaal Pirzada, P.Geo., who is a consultant of the Company, and a "Qualified Person" for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information contained in this news release.
About First Energy Metals Limited.
First Energy Metals is a Canadian mineral exploration company with a primary focus of acquiring a multicommodity mineral property portfolio. Its goal is to identify, acquire and explore North American mineral prospects in the precious metal, base metal and industrial metals sector.
The company's strategy is to:
- Acquire and advance projects through prospecting and early-stage exploration;
- Source joint venture partners to finance future exploration and project development;
- Create shareholder value through exploration success.
First Energy will continue to add to its multicommodity portfolio through organic acquisitions of new projects and opportunities with the intention of adding value and projects over time.
ON BEHALF OF THE BOARD OF
FIRST ENERGY METALS LTD.
"Gurminder Sangha"
Gurminder Sangha
President & Chief Executive Officer
Neither the Canadian Securities Exchange (CSE) nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this news release and has neither approved nor disapproved the contents of this news release.
Forward-looking Information
Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes information about the Company's proposed Transaction with Mr. Glenn Griesbach; and other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the Company's proposed Transaction with Mr. Glenn Griesbach may not be completed on the terms and timing currently contemplated, or at all; and other risks as more fully set out in the Company's continuous disclosure filings at www.sedar.com.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's ability to obtain required approvals and close the proposed Transaction with Mr. Glenn Griesbach. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
SOURCE First Energy Metals Limited