Fulcrum Metals PLC Share News (FMET)

(Sharecast News) - Canada-focussed mineral exploration and development company Fulcrum Metals announced the start of a phased sampling, testing, and study programme at its Sylvanite Gold Tailings project in the Kirkland Lake area of Ontario on Monday.

The AIM-traded firm said the programme marked the first phase of collaboration with Extrakt Processing Solutions.

It said the Sylvanite project was designed to confirm the gold content in the tailings, and evaluate the efficiency of Extrakt's processing technology in recovering gold and other by-products.

The tailings at Sylvanite were estimated to contain around 4.14 million tonnes at a grade of 0.47 grams of gold per tonne, amounting to 67,051 ounces of gold.

It said the programme would see the selection of eight site locations across the Sylvanite tailings area to obtain representative samples for analysis and testing.

Composite samples from each site would be sent to Extrakt's testing facility in Kentucky, with test work to include a comprehensive suite of metallurgical characterisation, such as ICP testing for a minimum of 40 elements, including gold, XRD mineralogical analysis, and batch leach testing using Extrakt's technology.

Sampling at the selected sites was set to begin imminently.

"Earlier this month, the company announced the results from initial leach testing at the Teck-Hughes tailings project," said chief executive officer Ryan Mee.

"The testing, which used Extrakt's technology, recovered up to 59.4% of gold, which is an incredible achievement, especially when you consider that recovery rates from refractory gold, without the use of toxic cyanide and pre-treatment, usually recover less than 40%.

"We believe that with further optimisation recovery rates have the potential to increase to beyond 60%."

Mee said that, having seen the "important successful results" at Teck-Hughes, he was "delighted" to announce the start of work at Sylvanite with a similar programme, meaning the company now had multiple work programmes underway to develop its tailings assets.

"It is an exciting period of growth for Fulcrum as it sets itself out from its peers as a sustainable and responsible metals company with a pathway to transform mine tailings from an environmental liability into a sustainable cash generative resource by extracting metals from mine waste through innovative technology.

"I look forward to providing further updates on developing the exciting potential of Fulcrum's tailings business in Ontario."

At 0957 BST, shares in Fulcrum Metals were up 0.34% at 14.9p.

Reporting by Josh White for Sharecast.com.