Announcement PDF ASX Announcement 31 October 2023 Quarterly Activities Report For the period ended 30 September 2023 Highlights: - Near surface, oxidised gold mineralisation extended at NW Array and high-grade antimony results received with assays from seventeen holes. - Significance of results in both gold and antimony has opened multiple potential development pathways. - Strategic review is being undertaken to determine optimal pathway forward. - Subsequent to the end of this reporting quarter, Joseph Webb was appointed Executive Director and Mark Strizek appointed Director, which brings extensive mining development experience to the Board and operations of the Company. - Completion of Share Purchase Plan raising a total of $592,000. Felix Gold Limited (ASX: FXG) (Felix or the Company) provides a summary of its operational and corporate activities for the quarter ended 30 September 2023. Operations Treasure Creek Project - Extension of Gold Mineralisation Near surface, oxidised gold mineralisation extended at NW Array with receipt of assays from seventeen holes. Drilling has intercepted gold mineralisation over an area of approximately 2km by 600m. Drilling is relatively shallow with sampling down to an average depth of 60m below surface. In more closely drilled areas associated with higher grades, drilling depths are down to around 100m below surface with gold mineralisation remaining open at depth. Although the trend of mineralised gold shears in trenches is west-northwest to northwest, at the larger scale the prospect trends north-northeast to northeast, parallel to the strike of the porphyry sill. Further exploration work is required at the prospect to determine the limits of gold mineralisation which remains open. The results open more extensive potential strike length and reveal the potential for parallel trends supported by soil anomalies. Notably, primary gold mineralisation remains open at varying depths and directions. The strategic drilling approach is concentrated on targeting near-surface oxide gold mineralisation, displaying grades comparable to, or surpassing, the current head grades of nearby Kinross’s Fort Knox Mine, a local Tier 1 gold mine searching for additional ore supply. Treasure Creek Project – Discovery of High-Grade Antimony High-grade antimony assays have been received at the NW Array Prospect in Treasure Creek. The recent drilling and previous exploration work has confirmed the presence of high-grade stibnite arsenopyrite bearing quartz veins and vugs in the felsic porphyry sill, usually in association with shear zones striking 290° to 300° dipping steeply to vertically. Felix Gold Limited (ASX.FXG) Level 1, 371 Queen Street, Brisbane QLD 4000 Tel: +61 7 3054 7108 ∙ Email: contact@felixgold.com.au 1 ∙ Web: www.felixgold.com.au ASX Announcement 31 October 2023 Recent assays received post this reporting quarter have returned multiple high-grade stibnite intervals grading up to 28% Sb (23TCRC176 6.1m @ 7.69% Sb from 3.05m including 1.52m @ 28% Sb from 6.10m). The discovery of multiple high-grade antimony zones, near surface, with results up to 28% Sb, opens additional commercialisation opportunities for Felix Gold. NE Fairbanks Project No active exploration activity was conducted at NE Fairbanks during the quarter. MHT No active exploration activity was conducted at MHT during the quarter. Grant-Ester Project No active exploration activity was conducted at Grant-Ester during the quarter. Liberty Bell Project No active exploration activity was conducted at Liberty Bell during the quarter. Upcoming Exploration Activities & Strategic Review There are no planned exploration activities in the immediate future. The work program consists of assessing recently received assay results from both the gold and antimony opportunities. A strategic review of both antimony and gold assets is being undertaken to determine the optimal pathway forward. Felix Gold Limited (ASX.FXG) Level 1, 371 Queen Street, Brisbane QLD 4000 Tel: +61 7 3054 7108 ∙ Email: contact@felixgold.com.au 2 ∙ Web: www.felixgold.com.au ASX Announcement 31 October 2023 Corporate Management Changes Subsequent to quarter end, Joseph Webb was appointed as Executive Director on the resignation of Anthony Reilly as CEO. Joe was the previous MD/CEO of Felix Gold and provides a seamless transition to the running of the Company. Mark Strizek was appointed as Director. Mark brings extensive gold development experience and expertise. Mark will be critical to assisting the Board in relation to the strategic assessment of current gold and antimony assets to optimise the Company’s future value. Capital Raising During the quarter, the Company completed a Share Purchase Plan to raise a total of $592,000 (SPP). The SPP was completed through the issue of 7,400,000 fully paid ordinary shares at $0.08 per share. Balance sheet At quarter end, Felix held A$0.869 million and zero debt (excluding trade creditors). Appendix 5B disclosures The Company’s accompanying Appendix 5B (Quarterly Cashflow Report) includes an amount in item 6.1 which constitutes executive (A$81k) and non-executive directors’ (A$11k) fees paid during the quarter, totalling A$92k. During the period, the Company spent A$0.71 million on exploration activities in Alaska. The Company also spent A$0.236 million on administration costs including executive and non-executive directors’ fees. Post IPO disclosures Pursuant to ASX Listing Rule 5.3.4, the Company provides a comparison of actual expenditure since admission to the Official List of ASX up until 30 September 2023 against estimated expenditure in the Use of Funds statement in the Prospectus. Felix Gold Limited (ASX.FXG) Level 1, 371 Queen Street, Brisbane QLD 4000 Tel: +61 7 3054 7108 ∙ Email: contact@felixgold.com.au 3 ∙ Web: www.felixgold.com.au ASX Announcement 31 October 2023 Prospectus (A$) Expenditure since admission (A$) Source of Funds Existing cash reserves Funds raised from IPO Total $3,100,000 $10,000,000 $13,100,000 $2,062,264 $10,000,000 $12,062,264 Expenditure Mineral Exploration – Treasure Creek Mineral Exploration – NE Fairbanks Mineral Exploration – Grant-Ester Mineral Exploration – Liberty Bell Administration and Working Capital Costs of the Offer Total $3,300,000 $2,010,000 $1,000,000 $4,040,000 $2,000,000 $750,000 $13,100,000 $7,222,670 $1,358,400 $671,828 $744,931 $1,412,315 $652,120 $12,062,264 The Company held $2,062,264 in existing cash reserves upon admission to the Official List. Expenditure from admission from both existing and funds raised from the IPO is as set out in the above table. This ASX release was approved for release by the Board of Felix Gold Limited. ENDS Enquiries Joseph Webb Executive Director Felix Gold Limited Ph: +61 422 955 411 E: joe.webb@felixgold.com.au Sophie Bradley Investor and Media Relations Reach Markets Ph: 1300 805 795 E: ir@reachmarkets.com.au To stay up to date with company news, register your details on the Felix Gold investor portal. Felix Gold Limited (ASX.FXG) Level 1, 371 Queen Street, Brisbane QLD 4000 Tel: +61 7 3054 7108 ∙ Email: contact@felixgold.com.au 4 ∙ Web: www.felixgold.com.au ASX Announcement 31 October 2023 About Felix Gold Felix Gold Limited (ASX: FXG) is an ASX-listed gold discovery business operating in the highly endowed Tintina Gold Province of Alaska in the United States. Our flagship asset is a substantial landholding in the world-class Fairbanks Gold District, where historical gold production exceeds 16 Moz. In Fairbanks, our tenements sit within one of the largest gold production centres in the entire Tintina belt and lie in close proximity to both Kinross Gold’s Tier 1 gold mine, Fort Knox, and the rapidly growing Freegold Ventures’ discovery, Golden Summit. We hold four key projects across over 392 km 2 of tenure in the heart of this premier gold production district. Felix’s key projects are located only 20 minutes from our operational base in the central mining services hub of Fairbanks City, Alaska. This base is a huge advantage for Felix with its existing infrastructure, low-cost power, skilled workforce and long history of gold production. It allows us to explore year-round and delivers genuine potential development pathways for our assets. Our key projects are located along the main Fairbanks gold trend and contain dozens of identified prospects, extensive alluvial gold production, large gold-in-soil anomalies and historical drill intercepts which remain wide open and mimic other major deposits in the district. We have multiple walk-up drill targets with evidence of largescale gold potential. We also possess an existing Mineral Resource at Grant-Ester with significant upside opportunity. Felix’s value proposition is simple: we are striving to be the premier gold exploration business in the Tintina Province through the aggressive pursuit and realisation of Tier 1 gold discoveries. Visit the Felix Gold website for more information. Forward-Looking Statements Various statements in this release constitute statements relating to intentions, future acts and events. Such statements are generally classified as “forward-looking statements” and involve known and unknown risks, uncertainties and other important factors that could cause those future acts, events and circumstances to differ materially from what is presented or implicitly portrayed herein. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates” and similar expressions are intended to identify forwardlooking statements. Felix cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements and references to what events have transpired for other entities, which reflect the view of Felix only as of the date of this release. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. Various statements in this release may also be based on the circumstances of other entities. Felix gives no assurance that the anticipated results, performance or achievements expressed or implied in those statements will be achieved. This release details some important factors and risks that could cause the Felix’s actual results to differ from the forwardlooking statements and circumstances of other entities in this release. Felix Gold Limited (ASX.FXG) Level 1, 371 Queen Street, Brisbane QLD 4000 Tel: +61 7 3054 7108 ∙ Email: contact@felixgold.com.au 5 ∙ Web: www.felixgold.com.au ASX Announcement 31 October 2023 Previous Disclosure – 2012 JORC Code The information in this release that relates to Exploration Results, Mineral Resources and Exploration Targets for Felix’s Fairbanks Gold Projects was extracted from the following ASX Announcements: - 19 October 2023 - High Grade Antimony Assays up to 28% Sb 6 October 2023 - Refreshed Management Team to Accelerate Felix Gold 25 September 2023 - Share Purchase Plan Result 11 August 2023 - Assay Results Unveiling Substantial Gold Zones and High-Grade Antimony 24 July 2023 - Continuation of Broad Zones of Gold and High-Grade Stibnite from NW Array 17 July 2023 - High-Grade Critical Mineral Discovery at NW Array 3 July 2023 - NW Array Drilling Returns Broad Gold Intercepts A copy of such announcements is available to view on the Felix Gold Limited website www.felixgold.com.au. The reports were issued in accordance with the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements. Felix Gold Limited (ASX.FXG) Level 1, 371 Queen Street, Brisbane QLD 4000 Tel: +61 7 3054 7108 ∙ Email: contact@felixgold.com.au 6 ∙ Web: www.felixgold.com.au ASX Announcement 31 October 2023 Additional ASX Listing Rule Information Felix provides the following additional information in accordance with ASX Listing Rule 5.3.3. Mining tenements held at the end of the quarter and their location As disclosed below by project area. Mining tenements acquired during the quarter and their location Not applicable. Mining tenements disposed of during the quarter and their location Not applicable. Beneficial percentage interests held in farm-in or farm-out agreements at the end of the quarter As disclosed below by project area. Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during the quarter Not applicable. Treasure Creek Project The Treasure Creek Project area consists of 236 Alaska State Mining Claims that cover 11,573 hectares. The Treasure Creek Project is a consolidation of mining claims held by Oro Grande Mining Claims LLC, Goldstone Resources LLC, Wally Trudeau, and Millrock Alaska LLC. Felix has acquired the mining claims or the exclusive rights to explore and an option to purchase the mining claims detailed below: TREASURE CREEK Goldstone Resources Wally Trudeau Oro Grande Millrock Treasure Creek Felix Rights Exclusive right to explore and option to purchase Exclusive right to explore and option to purchase Exclusive right to explore and option to purchase Mining claims assigned to Felix TOTAL TREASURE CREEK Number of Mineral Claims Total Acres Total Hectares Total SQ KM 22 3,174 1,285.47 12.8547 5 200 81 0.81 11 3,196 1,294.38 12.9438 198 22,006 8,912.43 89.1243 236 28,576 11,573.28 115.7328 Grant-Ester Project The Grant-Ester Project is comprised of 154 Alaska State mining claims that total 3,397 hectares. The Grant-Ester Project consists of mining claims held by Range Minerals Corporation, Roger Burggraf, Dobbs and Millrock Alaska LLC. Felix has acquired the mining claims, or the exclusive rights to explore and an option to purchase the mining claims as detailed below: GRANT-ESTER Felix Rights Millrock Ester Dome Mining claims assigned to Felix Burggraf Dobbs State Exclusive right to explore and option to purchase Exclusive right to explore and option to purchase TOTAL GRANT-ESTER Felix Gold Limited (ASX.FXG) Level 1, 371 Queen Street, Brisbane QLD 4000 Tel: +61 7 3054 7108 ∙ Email: contact@felixgold.com.au Number of Mineral Claims Total Acres Total Hectares Total SQ KM 59 4,549 1,842.345 18.42345 32 709 287.145 2.87145 2 20 8.1 0.081 154 8,388 3,397.14 33.9714 7 ∙ Web: www.felixgold.com.au ASX Announcement 31 October 2023 NE Fairbanks Project The NE Fairbanks Project is comprised of 326 Alaska State mining claims that total 14,637 hectares located approximately 25km to the Northeast of the city of Fairbanks. The NE Fairbanks Project consists of mining claims held by DG Resources Management (Us) Ltd, Fairbanks Exploration Inc. and Millrock Alaska LLC. Felix has acquired the mining claims, or the exclusive rights to explore and an option to purchase the mining claims as detailed below: NE FAIRBANKS Felix Rights Fairbanks Exploration Exclusive right to explore and option to purchase DG Resources Millrock NE Fairbanks Exclusive right to explore and option to purchase Mining claims assigned to Felix TOTAL NE FAIRBANKS Number of Mineral Claims Total Acres Total Hectares Total SQ KM 83 10,332 4,184.46 41.8446 141 14,038 5,685.39 56.8539 102 11,773 4,768.065 47.68065 326 36,143 14,637.915 146.37915 Liberty Bell Project The Liberty Bell Project is comprised of 209 Alaska State mining claims that total 9,623 hectares located approximately 115km to the south west of the city of Fairbanks. The Liberty Bell Project consists of mining claims held by Boot Hill Gold Inc., James Roland and Millrock Alaska LLC. Felix has acquired the mining claims or the exclusive rights to explore and an option to purchase the mining claims as detailed below: LIBERTY BELL Boot Hill Roland Millrock Felix Rights Exclusive right to explore and option to purchase Exclusive right to explore and option to purchase Mining claims assigned to Felix TOTAL LIBERTY BELL Number of Mineral Claims Total Acres Total Hectares Total SQ KM 26 2,720 1,101.6 11.016 10 400 162 1.62 173 20,640 8,359.2 83.592 209 23,760 9,623 96.23 MHT Project The MHT Project comprises Alaskan State Mining claims of 6,203 acres located only 20km north of major mining and logistics hub, Fairbanks City. The claims are held by the Mental Health Trust. Felix Gold has secured 100% lease of the claims. MHT Felix Rights Total Acres Total Hectares Total SQ KM MHT Project 100% Lease 6,203 2,512 25.12 6,203 2,512 25.12 TOTAL MHT PROJECT Felix Gold Limited (ASX.FXG) Level 1, 371 Queen Street, Brisbane QLD 4000 Tel: +61 7 3054 7108 ∙ Email: contact@felixgold.com.au 8 ∙ Web: www.felixgold.com.au Rule 5.5 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Name of entity FELIX GOLD LIMITED ABN Quarter ended (“current quarter”) 35 645 790 281 30 SEPTEMBER 2023 Consolidated statement of cash flows Current quarter $A’000 1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for Year to date (3 months) $A’000 - - (a) exploration & evaluation - - (b) development - - (c) production - - (d) staff costs (92) (92) (e) administration and corporate costs (144) (144) 1.3 Dividends received (see note 3) - - 1.4 Interest received - - 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Government grants and tax incentives - - 1.8 Other (provide details if material) - - 1.9 Net cash from / (used in) operating activities (236) (236) ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 1 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Consolidated statement of cash flows 2. Cash flows from investing activities 2.1 Payments to acquire or for: Current quarter $A’000 Year to date (3 months) $A’000 (a) entities - - (b) tenements - - (c) property, plant and equipment - - (710) (710) (e) investments - - (f) - - (a) entities - - (b) tenements - - (c) property, plant and equipment - - (d) investments - - (e) other non-current assets - - 2.3 Cash flows from loans to other entities - - 2.4 Dividends received (see note 3) - - 2.5 Other - - 2.6 Net cash from / (used in) investing activities (710) (710) 3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 592 592 (d) exploration & evaluation 2.2 other non-current assets Proceeds from the disposal of: 3.2 Proceeds from issue of convertible debt securities - - 3.3 Proceeds from exercise of options - - 3.4 Transaction costs related to issues of equity securities or convertible debt securities (36) (36) 3.5 Proceeds from borrowings - - 3.6 Repayment of borrowings - - 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid - - 3.9 Other (provide details if material) - - 3.10 Net cash from / (used in) financing activities 556 556 ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 2 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Consolidated statement of cash flows Current quarter $A’000 Year to date (3 months) $A’000 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 1,259 1,259 4.2 Net cash from / (used in) operating activities (item 1.9 above) (236) (236) 4.3 Net cash from / (used in) investing activities (item 2.6 above) (710) (710) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 556 556 4.5 Effect of movement in exchange rates on cash held - - 4.6 Cash and cash equivalents at end of period 869 869 5. Reconciliation of cash and cash equivalents Current quarter $A’000 Previous quarter $A’000 at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts 5.1 Bank balances 74 44 5.2 Call deposits 795 1,215 5.3 Bank overdrafts - - 5.4 Other (provide details) - - 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 869 1,259 6. Payments to related parties of the entity and their associates 6.1 Aggregate amount of payments to related parties and their associates included in item 1 92 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Current quarter $A'000 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 3 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report 7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7.1 Loan facilities - - 7.2 Credit standby arrangements - - 7.3 Other (please specify) - - 7.4 Total financing facilities - - 7.5 Unused financing facilities available at quarter end 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. 8. Estimated cash available for future operating activities 8.1 Net cash from / (used in) operating activities (item 1.9) (236) 8.2 (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) (710) 8.3 Total relevant outgoings (item 8.1 + item 8.2) (946) 8.4 Cash and cash equivalents at quarter end (item 4.6) 869 8.5 Unused finance facilities available at quarter end (item 7.5) 8.6 Total available funding (item 8.4 + item 8.5) 8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) - $A’000 869 0.92 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. 8.8 If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? Answer: The Company continues to assess its expenditure with the objective of future expenditure being dependent on available cash resources. The Company has recently completed its planned exploration program utilising funds raised and therefore expects exploration expenditure to be reduced based on its current cash resources. ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 4 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report 8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? Answer: The Company has not taken any formal steps to raise further cash to fund its operations at this time. The Company does however continue to assess its budgetary and ongoing funding requirements and intends to seek additional equity funding at an appropriate time and/or reduce its expenditure. The Company believes that the success of any future capital raising will be dependent on market considerations at that time. 8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: The Company expects that it will be able to continue its operations and to meet its business objectives based on the Company’s intention to seek additional equity funding and or reduce its expenditure as outlined above. Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered. Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Date: 31 October 2023................................................................................... Authorised by: The Board of Directors (Name of body or officer authorising release – see note 4) Notes 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. 2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. 4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”. 5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively. ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 5