Fireweed Metals

Overview

Fireweed Metals Corp. (TSXV:FWZ) is exploring for high-grade critical minerals at its wholly owned projects in Canada’s Yukon and Northwest Territories (NWT). These projects, which focus on zinc and tungsten, should benefit from increasing government incentives under Canada’s Critical Minerals Strategy.

The Canadian government aims to shore up domestic supply of critical minerals needed to power the transition to green energy and reduce supply dependence on foreign countries, especially China, which currently dominates the global critical minerals supply chain. Under the Critical Minerals Strategy, the Canadian government provides mining companies with substantial tax and funding incentives, and a commitment to expedite the federal environmental impact review process.

The Yukon is home to deposits rich in critical minerals, such as copper, zinc, molybdenum, tungsten, tin, nickel and platinum group elements. The Yukon government’s climate change plan, known as ‘Our Clean Future,’ lays the groundwork for increased investment in critical minerals, and positions the region to emerge as a world-class mining district.

The demand outlook for zinc and tungsten is robust. Zinc will remain in deficit over the coming decade, with a supply gap of around 6.9 million tons (Mt) by 2040. The tungsten market is anticipated to register strong growth due to its wide range of applications. According to Straits Research, the global market size for the metal was estimated at $4.4 billion in 2022 and is expected to reach $9.3 billion in 2031, representing a compounded annual growth rate of 8.7 percent. Fireweed’s focus on the exploration of critical minerals, such as zinc and tungsten, makes it an attractive investment candidate given the focus of Western governments on securing a ‘friendly’ supply of critical minerals in a market currently dominated by China.

The company has three core projects:

The flagship Macpass Project represents one of the largest high-grade undeveloped zinc deposits globally*.The Mactung Project is one of the largest high-grade tungsten deposits, globally*.The Gayna Project is characterized by its high potential for zinc, germanium, gallium, lead and silver.

The successful 2023 drill program at Macpass, particularly the discovery of high-grade massive sulphide mineralization at the Boundary Zone, has increased the potential for the prospect to contribute significantly to a planned resource update in 2024, which should be accretive to the overall valuation of Fireweed. Further, the Mactung Project, as an advanced-stage development asset, holds substantial potential for medium-term production. The expected PEA study at Mactung in 2024 will reaffirm its potential as a leading domestic tungsten source in a North American market with marginal access to the commodity.

Company Highlights

Fireweed Metals is a Canadian company that explores critical minerals, such as zinc and tungsten, in the Yukon and Northwest Territories in Canada.The company has three 100 percent owned projects in Canada — Macpass Project, Mactung Project and Gayna Project.The company’s flagship project — Macpass — boasts one of the world’s largest high-grade undeveloped zinc deposits*1.Likewise, the Mactung Project represents the world’s largest high-grade tungsten resource*2.The Gayna Project has high potential for discovering several minerals, including zinc, lead and silver, as well as gallium and germanium.Zinc, tungsten, gallium and germanium are on the U.S. and Canada’s critical mineral list as these countries try to shore up domestic supply to mitigate the supply dependence on China. Fireweed Metals is well-positioned to capitalize on the scarcity of these metals.

Key Projects

Macpass Project

The Macpass Project in Yukon, Canada, is one of the largest undeveloped zinc projects globally. The project is in Eastern Yukon, roughly 200 kilometers from Ross River, close to the Northwest Territories border and within the Kaska Dena Nation and First Nation of Na-Cho Nyӓk Dun territories. The project spans around 940 square kilometers and hosts large-scale zinc-lead-silver deposits. The project enjoys excellent infrastructure and is accessible by North Canol Road and Macmillan Pass Aerodrome.

The project is characterized by several zinc-lead-silver occurrences, including at Tom and Jason, Boundary Zone, End Zone, and other high-potential targets.

Tom and Jason targets represent high-grade zinc-lead-silver deposits. The 2018 resource estimates for the target are: 11.2 Mt of indicated tonnage at 9.61 percent zinc equivalent (ZnEq), with 6.59 percent zinc, 2.48 percent lead and 21.33 grams-per-ton (g/t) of silver; 39.5 Mt of inferred tonnage at 10 percent ZnEq, with 5.84 percent zinc, 3.14 percent lead and 38.15 g/t of silver1.The Boundary Zone target represents an advanced prospect with drilling of over 36,500 meters and roughly 100 holes. The prospect is characterized by high-grade zinc-lead-silver mineralization in well constrained stratiform and massive sulphides, with a broad halo of vein and breccia sulphide mineralization.End Zone is yet another prospect that hosts high-grade zinc-lead-silver mineralization. The drilling in 2018 intersected high grades, including 11.08 meters of 4.78 percent zinc, 10.17 percent lead, and 87 g/t silver.

Tom and Jason Deposit

The 2023 drilling program at the Tom-Jason deposit led to the discovery of a new Tom South zone. Tom South extends more than 100 meters beyond the known Tom West resource boundary and reveals grades considerably higher than those reported in the 2018 resource statement. These findings hint at a potential link between Tom West and Southeast through a fold hinge at Tom South. The drill holes at Tom South intersected high-grade, feeder-style mineralization compared to the more distal facies present at Tom West. At Tom South, drill holes TS23-009, TS23-009D1 and TS23-009D2 encountered high-grade stratiform and massive sulphides, affirming the presence of continuous mineralization beyond the 2018 resource. This suggests the mineralized zone extends along strike toward Tom Southeast and remains open down dip.

The key highlights from the preliminary economic assessment report released in 2018 for the Tom and Jason deposit include:

Life-of-mine (LOM) tonnage of 32.7 Mt over 18 yearsLOM production of 2.89 million lbs of zincInitial capex of C$404 millionPost-tax NPV of C$448 millionPost-tax IRR of 24 percent

Boundary Zone Deposit

Drilling at the Boundary Zone shows a high-grade massive sulphide layer indicating the potential for another large zinc system. The results from several holes drilled at Boundary Zone have been announced, of which hole NB23-028 remains the best intersection drilled to date at the target. The hole intersected 143.95 meters at 14.45 percent zinc, 1.15 percent lead, and 60 g/t silver, including a high-grade intersection over 28.71 meters at 25.52 percent zinc, 1.27 percent lead, and 91.3 g/t silver. Step-out drilling expanded the boundaries of identified zinc mineralization and highlights the elevated-grade nature of the mineralization at Boundary Zone. The company expects to deliver the inaugural resource estimate at Boundary Zone in the spring of 2024.

Mactung Project

The Mactung Project, located in NWT and Yukon in Canada, is the largest high-grade tungsten deposit globally2. Mactung straddles the Yukon-Northwest Territories border and is situated within the territories of Kaska Dena Nation and First Nation of Na-Cho Nyӓk Dun and the Sahtu Settlement Area. Mactung is adjacent to Fireweed’s flagship Macpass Project and enjoys excellent infrastructure in terms of access by road and air.

The project is 100 percent owned by the company and spans an area of around 38 square kilometers. It has seen extensive historical drilling, metallurgical testing and engineering for a project feasibility study done in 2009. Following acquisition by Fireweed, an updated mineral resource estimate was released in 2023, showing a 41.5 Mt indicated resource at 0.73 percent tungsten trioxide and 12.2 Mt inferred resource at 0.59 percent tungsten trioxide. These estimates make it the world’s largest high-grade tungsten deposit.

The project has a clear path to production, with various studies, including a feasibility study, planned for 2024-2025. Project construction is expected to start in 2028–2029, and production is expected to begin in 2029.

Gayna Project

Located in NWT, Canada, the Gayna Project has huge exploration potential for zinc, germanium, gallium, lead and silver. The project is located 180 kilometers west of Norman Wells, 180 kilometers north of Macpass, and is situated within the Sahtu Settlement Area, Gwich’in Settlement Area, and First Nation of Na-Cho Nyӓk Dun.

The project area spans around 128 square kilometers, hosting significant deposits of critical minerals, including zinc, gallium, germanium, lead and silver. The mineralization is found in veins and breccias within carbonate rocks, resembling Mississippi-Valley-Type (MVT) or Irish-type zinc-lead mineralization. Contemporary grab samples returned elevated concentrations of zinc (7.3–33.3 percent), lead (0–73.7 percent), and silver (<0.5–40.5 g/t) as well as gallium (4–48 ppm) and germanium (9–99 ppm). While 28,000 meters of wide-spaced historical drilling outlined an extensive mineralized area, recent studies suggest the potential for high-grade massive sulfide exploration models that the previous operators were not targeting.

Recent geophysical programs in 2022 and 2023 identified two broad areas with gravity anomalies and several potential drill targets.

Management Team

Brandon Macdonald – CEO and Director

Born in Yukon to a mining family, Brandon Macdonald began his career in the industry as a teenager staking claims and in exploration camps. Following a Bachelor of Science in geology from the University of British Columbia, he pursued exploration geology worldwide. In 2007, he graduated with an MBA with distinction from Oxford University and subsequently joined Macquarie Bank in London, England, where he focused on project finance and risk management for mining. Since returning to Canada, Macdonald has been a principal of, or consultant to, numerous junior mining companies and joined Fireweed as a Founder and CEO in late 2016.

James Scott – Senior Vice-president, Projects

James Scott holds an M.Sc. in geology from the University of Alberta and a B.Sc. in geology from Carleton University. He is a professional geologist with two decades of experience in mineral exploration and development. He has worked extensively with several leading mining players and junior exploration companies and has been associated with federal government surveys.

Pamela O’Hara – Vice-president, Sustainability

Pamela O’Hara holds an M.Sc. in environment and management from Royal Roads University and a B.Sc. in oceanography and biology from the University of British Columbia. She has over three decades of experience in approval acquisition for mining and infrastructure projects, and has a deep understanding of the regulatory landscape. She has previously worked with several companies, including Goldcorp, BHP, Yukon Zinc, Newmont, Canadian Pacific Railway, and others.

Cindy Chiang – Chief Financial Officer

Cindy Chiang is a chartered accountant and a chartered professional accountant. She holds a BBA in accounting and finance from Simon Fraser University. She has experience in public practice and industry and has previously worked with KPMG.

Jack Milton – Vice-president, Geology

Jack Milton holds a Ph.D. in geological science from the University of British Columbia, an M.Sc. in mining geology, and a B.Sc. in applied geology from the University of Exeter. He is a professional geologist and a fellow of the Geological Society, London. He has over 14 years of experience working in the Northwest Territories, Yukon and British Columbia.

Moira Cruickshanks – Vice-president, Technical Services

Moira Cruickshanks holds an M.Sc. in geology from Imperial College London and an M.Sc. in geological sciences from the University of British Columbia. She has over 14 years of experience in mineral exploration in North America and has worked in the Northwest Territories, Yukon, British Columbia, the U.S. and Mexico.

Kelly Bateman – Vice-president, Studies

Kelly Bateman holds a B.Sc. degree in geological sciences from Queen’s University and currently serves on the board of Commander Resources. She is a professional geologist with more than 12 years of experience in the exploration sector with a focus on projects in Northern Canada. She has been associated with the Wellgreen Deposit in the Yukon, JDS Energy & Mining, and Goldcorp’s Coffee Project.

Andrew Crook – Vice-president, Operations

Andrew Crook is a professional engineer with a Bachelor of Applied Science in mining engineering from the University of British Columbia. He has over 10 years of experience in various domains, such as operations, project management and engineering, and has worked with leading mining companies and junior developers.

Alex Campbell – Vice-president, Corporate Development

Alex Campbell holds a B.Sc. and M.Sc. in mining engineering from Pontificia Universidad Catolica de Chile and an M.Sc. in mineral and energy economics from the Colorado School of Mines. He has over 10 years of experience in mining operations, mine finance and capital markets, having worked with Antofagasta Minerals and CIBC’s investment banking team.

Penny Johnson – Corporate Secretary

Penny Johnson graduated from Brigham Young University and is a Governance Professionals of Canada member. She has over two decades of experience in various domains, including corporate governance, compliance, board, and committee matters, disclosures, and corporate transactions.

John Robbins – Chairman

John Robbins is a professional geologist with over 35 years of experience in the mining sector. Currently, he is the chairman of the company and K2 Gold, director of Elemental Altus Royalties, and advisor to Kodiak Copper, ValOre Metals and Prospector Metals. He has been involved in several discoveries, including the Coffee Gold deposit, Yukon, Three Bluffs gold deposit, and others.

Adrian Rothwell – Director

Adrian Rothwell is a chartered professional accountant in British Columbia and a chartered accountant in New Zealand and Australia. He holds a degree in business administration from Macquarie University. He has over 25 years of experience in the mining sector. He is currently CEO of Angold Resources and has worked as CFO for many companies.

Peter Hemstead – Director

Peter Hemstead is a chartered professional accountant with a B.Sc. in economics from Western University. He has over 25 years of rich experience in various finance domains. He has been associated with Bluestone Resources and Capstone Mining.

Marcus Chalk – Director

Marcus Chalk is a chartered financial analyst and holds a BBA degree from Western University. He has over 25 years of experience in the metals and mining industry, and also has rich experience in the investment banking area, having worked with Macquarie North America, CIBC and Scotiabank.

Jill Donaldson – Director

Jill Donaldson is a corporate and securities lawyer with rich experience in various domains, including M&A, capital markets, strategy, governance and compliance. She holds an ICD.D designation from the Institute of Corporate Directors. She has been associated with Prospera Credit Union, Canuck Place Children’s’ Hospice, and Great Bear Royalties Corp.

Patrick Downey – Director

Patrick Downey holds a B.Sc. degree in Engineering from Queen’s University. He has over four decades of experience in the resource sector, including operations, construction, and development. He is the CEO of Orezone Gold and has previously worked with Elgin Mining, Aura Minerals and Viceroy Exploration.

Tim Oliver – Technical Advisor

Tim Oliver holds a B.Sc. in environmental engineering from the New Mexico Institute of Mining and Technology. He is a professional engineer with over 45 years of mining industry experience as an environmental engineer, staff engineer and independent consulting engineer.

Laurie Reemeyer – Technical Advisor

Laurie Reemeyer holds a B.E. in minerals process from the University of Queensland and an MBA from the University of California, Berkeley. He has over 30 years of experience in the mining industry, having previously worked with Zinifex and Amec Foster Wheeler.

Mark Smith – Technical Advisor

Mark Smith holds an M.E. degree in civil and geotechnical engineering from the University of Nevada. He is a professional engineer with over 45 years of experience in geotechnical engineering, focusing on mine waste and infrastructure. He has over 10 years of experience in the Yukon region and was associated with the Coffee Gold and Eagle Gold projects.

Stephen Morison – Technical Advisor

Stephen Morison holds a M.Sc. in geology from the University of Alberta and a B.Sc. in geology from Queen’s University. He is a professional geologist with 45 years of experience in geoscience, environment and regulatory areas. He has rich leadership experience in environmental assessment, climate change, approvals, and First Nations engagement and consultation.

David Bigelow – Technical Advisor

David Bigelow holds a B.Sc. in geology and earth science from Western University. He has over four decades of experience in operations, corporate management, and consultancy in the mining sector.

Steve Nicol – Technical Advisor

Steve Nicol holds a B.E. in mining engineering from the University of NSW, Australia. He has over 35 years of experience in the mining sector in operations, development and various corporate roles.

Footnotes and References

* References to relative size and grade of the Mactung resources and Macpass resources in comparison to other tungsten and zinc deposits elsewhere in the world, respectively, are based on review of the Standard & Poor’s Global Market Intelligence Capital IQ database.

1For details, see https://www.sedarplus.ca/ Fireweed Technical Report titled “NI 43-101 Technical Report on the Macmillan Pass Zinc-Lead-Silver Project, Watson Lake and Mayo Mining Districts Yukon Territory, Canada” filed on https://www.sedarplus.ca/ on February 23, 2018, and Fireweed News Release dated January 10, 2018

2For details, see Fireweed news release dated June 13, 2023 “Fireweed Metals Announces Mineral Resources for the Mactung Project: the Largest High-Grade Tungsten Deposit in the World” and the technical report entitled “NI 43-101 Technical Report, Mactung Project, Yukon Territory, Canada,” with effective date July 28, 2023

This article was written in collaboration with Couloir Capital.