TIDMFME
RNS Number : 7668X
Future Metals NL
28 April 2023
28 April 2023
Future Metals NL
Quarterly Activities Report
for the period ended 31 March 2023
Highlights
-- Discovery of a large 1km long untested embayment feature
("BC1") with multiple coincident Ni-Cu-PGM sulphide geophysical and
stream sediment anomalies
-- Step out drilling results at Panton returned high-grade PGM
mineralisation 350m beyond the existing 6.9Moz PdEq JORC Mineral
Resource Estimate ("MRE")
-- Breakthrough for future processing of Panton ore with the
following achievements:
o Flotation repeatability established with consistent
metallurgical PGM average recoveries of 78% at concentrate grades
averaging 286g/t PGM(3E)
o Bulk ore sorter test work demonstrated 97% recovery of
high-grade PGM bearing ore and rejection of low grade material and
waste
-- Scoping Study is well advanced incorporating the processing
achievements, and assessing the value add of downstream processing
as a development option to produce future high payability, low
emission upgraded metal products . The Company is targeting
finalisation and release of the study's findings in H2 2023
-- Secured the right to farm-in to the adjoining and highly
prospective Panton North exploration ground, more than doubling
exploration position at Panton, and adding Copernicus North as a
second project
-- Drill planning underway for Q2 2023 to test the shallow BC1
target and other targets at Panton West
-- The Company remains well funded to complete its planned
drilling and the Scoping Study
Future Metals NL ("Future Metals" or the "Company", ASX | AIM:
FME) is pleased to provide its Quarterly Activities and Cashflow
Report for the Quarter ended 31 March 2023 ("Quarter").
Future Metals is the 100% owner of the Panton PGM-Ni Project
("Panton Project", or "Project"), located 60km north of the town of
Halls Creek in the eastern Kimberley region of Western Australia, a
tier one mining jurisdiction.
The Project is situated on three granted mining licences and
lies 1km off the Great North Highway which accesses the Port of
Wyndham (see Figure One) .
The Panton Project hosts an independent JORC Code (2012) Mineral
Resource Estimate ("MRE"), as announced on 21 June 2022, of 129Mt @
1.20g/t PGM(3E) , 0.19% Ni, 0.04% Cu and 154ppm Co (1.66g/t PdEq)
at a cut-off grade of 0.90g/t PdEq for contained metal of 5.0Moz
PGM(3E) , 239kt Ni, 48kt Cu and 20kt Co (6.9Moz PdEq).
The MRE includes a high-grade reef of 25Mt @ 3.57g/t PGM(3E) ,
0.24% Ni, 0.07% Cu and 192ppm Co (3.86g/t PdEq) for contained metal
of 2.9Moz PGM(3E) , 60kt Ni, 18kt Cu and 5kt Co (3.2Moz PdEq).
PGM-Ni mineralisation occurs within a layered, differentiated
mafic-ultramafic intrusion referred to as the Panton intrusive
which is a 12km long and 3km wide, south-west plunging synclinal
intrusion. PGM mineralisation is hosted within a series of
stratiform chromite reefs as well as a surrounding zone of
mineralised dunite within the ultramafic package. The Panton
intrusive is also highly prospective for Ni-Cu-PGM sulphide
mineralisation from multiple magmatic events.
Mr Jardee Kininmonth, Managing Director of Future Metals,
commented on the Quarter:
"Great progress has been made on both the Scoping Study which is
assessing the development options for Future Metals' high-grade PGM
resource, as well as our exciting nickel-sulphide exploration
model.
"The metallurgical achievements and processing breakthrough will
enhance the economic outcomes for the Scoping Study, and we are
enthused by the potential upside from incorporating downstream
processing into the study programme, which could set Future Metals
apart as a future high-grade, low emissions PGM producer.
"The Company has also quickly matured the nickel-sulphide
exploration model from concept stage to definitively demonstrating
that the Panton Project has strong potential to host a significant
accumulation of Ni-Cu sulphide mineralisation.
As part of this exploration model, we farmed into the adjoining
Panton North and the nearby Copernicus North tenements which host a
number of highly prospective and untested Ni-Cu sulphide targets
including the recently identified embayment feature (BC1) and
Panton West which we are preparing to drill in Q2 2023."
Figure One | Panton PGM Project Location
Operational Activities
Drilling Results Discussion
The Company completed its 2022 drilling campaign during the
Quarter, where it was testing targets identified from historical
drilling, EM surveys, and gravity and magnetics inversion
modelling. The completed drilling successfully demonstrated a
distinct and broad Ni-Cu sulphide enriched zone within the Panton
Intrusive separate to the high-grade reef and the surrounding bulk
mineralisation in the 6.9Moz PdEq MRE.
A total of eight diamond drill holes (PS407-PS414) for
approximately 3,275m were completed, testing for the occurrence of
magmatic Ni-Cu-PGM sulphide mineralisation. All assay results were
received during the Quarter. These results demonstrate that Panton
hosts multiple mineralisation styles including a large sulphide
rich system outside of the portion of the deposit hosting the
6.9Moz PdEq JORC MRE.
High-Grade PGM Reef Step Out Intersection
Results from the deep drill hole PS414, 1,328.6m co-funded under
the Western Australian State Government's EIS Scheme, were received
during the Quarter. Intersections demonstrating significant PGM and
sulphide mineralisation include (refer Figure Three) :
-- 22.4m @ 1.50 g/t PGM(3E) (1) , 0.21% Ni, 155ppm Co and 0.04%
Cu from 786m, including
o Intersection of the high-grade PGM upper reef of 2m @ 6.6 g/t
PGM(3E) (1) , 0.29% Ni, 153ppm Co, 0.12% Cu from 786m
-- 36m @ 0.86 g/t PGM(3E) (1) , 0.23% Ni, 151ppm Co, 0.01% Cu
from 850m
-- 19m @ 0.15 g/t PGM(3E) (1) , 0.19% Ni, 158ppm Co, 0.11% Cu
from 1,053m
This was the first time a drill hole had been drilled through
the entire Panton intrusion and its results demonstrated strong
continuity of the high-grade PGM reef, providing a step out
intersection of up to 350m from the nearest drill hole included in
the current MRE.
This provides significant growth potential to the high-grade
reef component of the MRE, comprising 3Moz of the current 6.9Moz
PdEq MRE.
Figure Two shows where hole PS414 intersected the high-grade
reef, relative to the closest other intersections included in the
current MRE wireframe model.
The Company is currently working on an updated JORC MRE to
incorporate a more detailed geological understanding of the
high-grade reefs that has been informed by recent drilling. This
will enable improved mine and process design to underpin the
Scoping Study on the high-grade PGM mineralisation at the Panton
Project. The Company expects that this updated MRE will be
significantly enhanced by the results from hole PS414.
Figure Two | Orthogonal view showing location of PS414
intersection of the high-grade PGM reef relative to the nearest
holes in the NNW and NE
Panton Complex
The 2022 drill programme completed during the Quarter
successfully redefined the Panton Project as an intrusive complex
("Panton Complex") with significant potential for a nickel-sulphide
discovery and will enable the Company to focus in on the most
prospective areas for drilling a potentially large accumulation of
sulphide mineralisation.
The deep drill hole identified at least two discrete phases of
magma intrusions. The upper zone (Unit B) hosting the previously
defined reef-style PGM mineralisation and the newly recognised
lower zone (Unit A) hosting disseminated magmatic sulphide
mineralisation.
The identification of two distinct intrusions is significant for
advancing exploration at Panton, which has historically been
considered one system, with this drill hole confirming the dynamic
nature of the newly defined Panton Complex.
In addition, it supports the interpretation that the presence of
a large untested embayment feature (see discussion below) on the
northwest margin of the complex as a high-priority target. It also
explains the local anomalous high-grade Ni-Cu sulphide intercepts
in historical drilling and the recently drilled zones of broad
disseminated magmatic sulphide mineralisation in the northwest
area.
Figure Three | Cross Section for Drill Hole PS414
The above observations have been integrated into a model to
explain the sulphide mineralisation potential of Unit A at Panton,
as illustrated in Figure Four.
Figure Four | Nickel Sulphide Emplacement Schematic
1: Emplacement of a hybrid melt (mixture of wallrock sulphide
droplets to blebs, plus primary picritic magma) into the base of
the sill
2: Accumulation and pooling of Ni-Cu rich sulphide magma in
embayments near the feeder; remobilisation of sulphides from the
top of this pool by subsequent pulses of turbulent new magma,
resulting in sulphide-rich blobs within the overlying dunite formed
by the new magma
3: Lower zone, including sulphide blobs overlying the basal
sulphide pool, freezes; major new magma pulse into sill (using same
feeder position) produces PGM-rich Chromitite layers which are
thickest and best mineralised above the sulphide-rich embayment
4: Folding of the sill resulting in the embayment area appearing
as a thickened zone on the contact
5: Late faulting locally remobilised sulphide blobs
Significant Embayment feature 'sulphide trap' - BC1
During the ongoing review of new and historical geological
information the Company has identified a potential embayment
feature on the Panton North tenement (subject to a farm-in
agreement with Octava Minerals Ltd where the Company has the right
to earn 70% interest).
Embayment features can act as 'sulphide traps', providing a
confined localised volume in which sulphide rich magma can settle.
This untested embayment feature was identified along the northwest
intrusion contact in multiple datasets, including magnetics and
short wave infra-red imagery. A desktop review of the surface
expression of this embayment area indicates that it has been
subject to increased weathering which in turn can be an indicator
of gossanous material, potentially related to sulphide
mineralisation. Historical stream sediments identified highly
anomalous coincident nickel-copper values on the margin of the
interpreted embayment feature ("BC1"). The BC1 target represents a
strike of approximately 1,000m which has not been drill tested
(refer Figure Five) .
Figure Five | Plan view showing embayment target ('BC1') and
significant sulphide intercepts
Assay results | Holes PS407 - PS413
Drill holes PS407 to PS413 were primarily targeting large
magnetic anomalies and sulphide mineralisation intersected in
historical drilling. All drill holes demonstrated a distinctive
sulphide population that is anomalous relative to historical
drilling along strike in Unit A, which was targeting the same
stratigraphic units. Anomalous intersections included:
-- 83m @ 0.49 g/t PGM(3E) , 0.25% Ni, 136ppm Co, 0.04% Cu, 0.24%
S from 53m (PS408)
-- 1m @ 0.60 g/t PGM(3E) , 0.27% Ni, 0.23% Cu, 141ppm Co, 0.42%
S from 84m (PS408)
-- 6m @ 0.07 g/t PGM(3E) , 0.21% Ni, 0.12% Cu, 171ppm Co, 0.55%
S from 57m (PS409)
-- 10m @ 0.48 g/t PGM(3E) , 0.20% Ni, 0.03% Cu, 131ppm Co, 0.62%
S from 198m (PS409)
-- 19m @ 0.23 g/t PGM(3E) , 0.26% Ni, 158ppm Co, 0.09% Cu, 0.34%
S from 240m (PS410)
-- 5m @ 0.15 g/t PGM(3E) , 0.21% Ni, 153ppm Co, 0.08% Cu, 0.48%
S from 343m (PS410)
-- 11m @ 0.03 g/t PGM(3E) , 0.11% Ni, 1149ppm Co, 0.10% Cu,
0.59% S from 146m (PS410)
-- 1m @ 0.97 g/t PGM(3E) , 0.25% Ni, 0.30% Cu, 161ppm Co, 0.49%
S from 314m (PS410)
-- 53m @ 0.12 g/t PGM(3E) , 0.18% Ni, 158ppm Co, 0.10% Cu, 0.44%
S from 32m (PS413)
Metallurgical Testwork and Scoping Study Activities
During the Quarter, the Company released an update regarding its
metallurgical test work programmes and Scoping Study activities.
The results demonstrated a significant de-risking for the potential
future mining and processing of the high-grade reef component of
the Panton Project's MRE and provided a credible path towards
developing a low capital, high margin PGM-Ni operation. The Company
is currently progressing a Scoping Study which will evaluate
multiple development scenarios, including the production and sale
of a bulk Ni-PGM concentrate and a scenario where the concentrate
is further processed using hydrometallurgical technology to produce
upgraded PGM and base metals products.
Figure Six | Project Delivery Strategy
Pre-concentration via Ore Sorting
Options to de-risk and improve the development economics for the
Panton Project have been investigated through innovation and recent
technological improvements. One such pathway involves the rejection
of waste early in the comminution process via ore sorting.
Ore sorting technology has been used in the PGM and chromite
mining industry for over ten years. The technology classifies and
separates individual rocks by their physical and chemical
properties. By removing gangue and low-grade ore, the size of the
crushing, milling and flotation equipment can be optimised.
Reducing the process plant throughput rate while increasing grade
provides direct savings in terms of capital and operating costs.
Ore sorting also reduces the impact of dilution allowing for the
use of conventional mining equipment, further driving down
operating costs. Reductions in mining and process operating costs
allows the mining cut-off grade to be optimised and the viable
mining inventory to be potentially increased.
Sighter and bulk test work has been completed with Steinert
Sorting Solutions. The sighter test work involved a three-stage
separation process applied to a mixed feed of chromitite, magnesite
and dunite. Greater than 95% chromitite recovery was achieved
during the first pass, using an x-ray transmission 3D-laser
combination sort programme ("XRT-3D"), due to the chromitite being
substantially higher in atomic density. 100% of the magnesite was
recovered during the second pass, using both an XRT-3D combination
(due to the lower atomic density of magnesite) and laser brightness
(due to the high colour contrast between magnesite and the other
materials).
Following the success of the sighter test work, a bulk test was
also completed. The bulk test work involved compositing separate
chromitite and dunite samples to replicate the expected feed mix
from a mine stope. The chromitite and dunite were crushed and
screened into three size fractions; +25mm, +10mm, and -10mm. Each
of these size fractions were assayed prior to preparation of two
composites; -75mm to +25mm and -25mm to +10mm, which were processed
using the same XRT 3D-laser combination sort programme used in the
sighter test work. The fine -10 mm fraction is considered to be
below the capability of the ore sorting units and was not
tested.
The bulk ore sort test work validated the sighter test work on
multiple size fractions, demonstrating 96.7% recovery of high-grade
ore and rejection of low-grade and waste, increasing the PGM grade
of the potential mill feed by 10.7% and reducing the throughput
volume by 12.7%. This represents a very positive result early on in
the test work process.
Table One | Bulk Ore Sorting Test Results
Ore Sorting Products Pt Pd Au Pt, Pd & Au
Recovery g/t Recovery g/t Recovery g/t Recovery g/t Recovery
(%) (%) (%) (%) (%)
--------- ----- --------- ----- --------- ----- --------- ----- ---------
Calculated Head Grade (Ore Sorter
Feed) 3.49 4.00 0.38 7.87
--------- ----- --------- ----- --------- ----- --------- ----- ---------
Total Ore Sorter Accepts 87.3 3.88 96.9 4.44 96.8 0.40 92.5 8.72 96.7
--------- ----- --------- ----- --------- ----- --------- ----- ---------
Total Ore Sorter Rejects 12.7 0.85 3.09 1.00 3.18 0.22 7.5 2.07 3.4
Figure Seven | Steinert KSS XT CLI Ore Sorter
*Dimensions and grades are for illustrative purposes only
Figure Eight | Ore Sorting Schema
Flotation Test Work Results
As previously noted in the Company's announcement on 7 July 2021
'Above 80% PGM Recovery to High Grade PGM Concentrate', flotation
test work carried out in 2015 on Panton chromitite ore achieved a
technical breakthrough for the Panton Project. The best result
achieved (test HL1279) was 81.4% recovery (PGM(3E) ) at a 2.5% mass
pull for a 272 g/t PGM(3E) concentrate grade with a rapid 14
minutes of flotation time. Whilst the 2015 test work achieved
dramatic improvements in the flotation performance, repeatability
of HL1279 was not established and there was minimal follow up
optimisation work.
As detailed in the Company's announcement on 21 June 2022
'Independent Resource Estimate of 6.9Moz PdEq', the Company
undertook further flotation test work in early 2022 on both
low-grade composites (2.3g/t PGM(3E) ) and high-grade composites
(7.6g/t PGM(3E) ), using a single stage rougher-scavenger test.
Results yielded PGM(3E) recoveries of up to 68% and 71%
respectively (with higher Pd recovery relative to the Pt recovery)
with concentrate grades of 130g/t PGM(3E) for the high-grade
composite and up to 17g/t PGM(3E) for the low-grade composite.
Following this initial test work, the Company embarked on a
systematic programme of optimisation and variability test work with
Independent Metallurgical Operations Pty Ltd.
Flotation results from this latest programme of optimisation and
variability test work yielded positive results on the high-grade
chromitite samples with consistent PGM(3E) recoveries of 75.7% to
81.4% with concentrate grades from 167 g/t to 387 g/t PGM(3E) with
an average of 286g/t PGM(3E) . These results were achieved over six
consecutive tests, demonstrating strong repeatability of the
flotation regime. A key factor to these consistent results is
controlling potential through the flotation cycle and ensuring a
reducing environment is maintained. Other physical parameters have
also been optimised such as froth collection rates, number of
flotation stages and flotation retention time. Table Two details
these latest flotation results.
Table Two | Optimisation and Variability Flotation Test
Programme - Concentrate Grades
Test Concentrate Grade Head Grade
No.
----------------------------------------------------------------- --------------------
Mass Pt Pd Au Pt, Pd Pt Pd Au Pt,
Pull & Au Pd
&
Au
------ ----------- ----------- ----------- ----------- ----- ----- ----- ------
% g/t Rec g/t Rec g/t Rec g/t Rec g/t
------ ---- ----- ---- ----- ---- ----- ---- ----- ---------------------------
FT014 2.46 136 77.7 154 74.9 11 65.3 301 75.7 4.31 5.06 0.42 9.79
--------- ------ ---- ----- ---- ----- ---- ----- ---- ----- ----- ----- ----- ------
FT015 2.90 121 80.3 139 78.1 11 68.9 271 78.6 4.38 5.18 0.45 10.01
--------- ------ ---- ----- ---- ----- ---- ----- ---- ----- ----- ----- ----- ------
FT016 1.85 175 78.9 197 75.9 15 68.3 387 76.9 4.09 4.79 0.41 9.29
--------- ------ ---- ----- ---- ----- ---- ----- ---- ----- ----- ----- ----- ------
FT017 2.36 136 78.8 154 75.7 12 67.9 302 76.7 4.08 4.78 0.43 9.29
--------- ------ ---- ----- ---- ----- ---- ----- ---- ----- ----- ----- ----- ------
FT018 3.34 127 82.3 151 81.2 11 74.6 289 81.4 5.13 6.21 0.50 11.84
--------- ------ ---- ----- ---- ----- ---- ----- ---- ----- ----- ----- ----- ------
FT019 4.51 71 78.3 89 77.2 7 70.9 167 77.4 4.11 5.19 0.43 9.73
--------- ------ ---- ----- ---- ----- ---- ----- ---- ----- ----- ----- ----- ------
Average 2.90 128 79.4 147 77.2 11 69.3 286 77.8 4.35 5.20 0.44 9.99
--------- ------ ---- ----- ---- ----- ---- ----- ---- ----- ----- ----- ----- ------
The Company considers the head grade of the flotation tests to
be within an acceptable range of potential mill feed grade when
factoring in mined grade of the Upper Reef following upgrading
through ore sorting.
Table Three sets out the range of achieved recoveries,
concentrate grades and head grades for by-products in the flotation
tests on chromitite ore samples:
Table Three | By-product Recoveries*
Panton Ni Cu Co* Rh Ir Os
(%) (%) (%) (g/t) (g/t) (g/t)
Head Grade 0.27 - 0.28 0.04 0.03 0.09 - 0.10 0.09 - 0.11 0.12 - 0.13
Recovery (%) 37 - 45 56 - 62 8 - 9 38 - 44 50 - 55 29 - 34
Concentrate Grade 3.8 - 5.5 0.9 - 1.3 0.06 - 0.07 1.4 - 2.0 1.9 - 2.6 1.4 - 2.1
*Only FT017 was assayed for Co
Ongoing Test Work
The results demonstrate that a very high grade PGM(3E)
concentrate is achievable from Panton chromitite ore feed. As a
consistent baseline flotation regime has been established, there is
significant potential for further optimisation through the study
process. This includes introducing a cleaner circuit, concentrate
regrind, and further exploratory testing of reagents to improve
recoveries, including the recoveries of base metals in feed. The
Company will continue to test for further improvements, as well as
testing the variability of flotation response from samples
throughout the Panton orebody.
Panton's future concentrate will likely be marketed as a bulk
Ni-PGM(3E) concentrate. Additional optimisation, planning and
marketing work is required in relation to the chrome content of the
concentrate, given it is a deleterious element. However, the high
PGM(3E) grade of the concentrate is expected make the potential
Panton Ni-PGM(3E) concentrate attractive to smelters despite the
chrome content. Mine planning and blending strategies will also be
utilised to ensure a consistent, valuable Ni-PGM(3E) concentrate is
produced.
Test work has demonstrated that a metallurgical grade chromite
concentrate can be produced from the Panton flotation tails (from
chromitite ore) through Wet High Intensity Magnetic Separation
("WHIMS"). Chromite concentrate represents a potentially valuable
co-product, which is typically sold into the ferrochrome industry,
as input into stainless steel.
The Company plans to continue optimisation and marketing work
and assess the inclusion of a WHIMS circuit in the forthcoming
Scoping Study.
Downstream Processing | Hydrometallurgy
A study is underway to assess the potential to further process
the high-grade concentrate utilising a hydrometallurgical process
to produce upgraded metal products. The potential benefits of
hydrometallurgical processing include improved payabilities,
reduced logistics costs and significantly less sensitivity to many
elements deleterious to smelters, such as chrome. Such benefits
have resultant benefits for mine planning and mine inventory.
Lifezone Ltd ("Lifezone") has been engaged as a technology
partner to further explore the amenability of utilising their
hydrometallurgical technology for further upgrading of the Panton
concentrate. The Lifezone hydromet process replaces the smelting
process, extracting contained metals in concentrate through
hydrometallurgical processes to produce a suite of metals products
suitable for potential direct sale to refiners. Hydrometallurgical
processing has a range of benefits relative to smelting
including(1) :
-- 65-80% lower capital costs
-- 35-50% lower operating costs
-- 50-85% lower electricity consumption
-- Up to 80% lower CO(2) emissions and no SO(2) emissions
-- Fewer constraints on concentrate quality than smelting
The Company's view is that a low emission upgraded PGM product
from Australia would be highly sought after by potential customers
in the hydrogen and automotive industries, who are sensitive to
accumulated emissions through the supply chain, as well as other
ESG considerations.
Panton's high grade PGM(3E) concentrate would allow for a small,
low-capital process plant employing Lifezone's hydromet technology,
which would potentially significantly enhance the economics of the
Panton Project.
(1) Kell hydrometallurgical extraction of precious and base
metals from flotation concentrates - Piloting, engineering and
implementation advances. June 2019. K Liddell, M Adams, L Smith
June 2023 Quarter Activities
Ongoing Exploration Activities
The Company continues to build upon its nickel sulphide
exploration model and work towards a discovery of a large,
high-grade accumulation of Ni-Cu sulphides. The 2022 drill
programme enabled the Company to validate the presence of a primary
magmatic sulphide system within Panton, reduce the search space for
follow-up exploration and identify a discrete untested target in
BC1, the embayment feature.
Evaluations and preparatory activities are being undertaken
across Panton, BC1 and the Panton West prospect for a follow up
drill programme currently planned for Q2 2023.
The drill programme will likely involve shallow Reverse
Circulation ("RC") drilling as a first pass. The Company will
provide further details on these targets in Q2 2023.
Scoping Study Progress
The Company is pleased with the progress made to date, with ore
sorting and flotation test work significantly de-risking the future
development of Panton. The ore sorting results have a material
impact on mine design and enable a reduction in the size of milling
and flotation equipment, tailings storage, electricity requirements
and water consumption which will therefore reduce estimated capital
and operating costs. Following positive pre-scoping assessment and
prior test work of Lifezone's hydromet process, the Company is also
assessing the potential of downstream integration as part of its
Scoping Study. Additionally, the Company now has an improved
geological model for Panton which will be used to inform an updated
JORC Mineral Resource estimate to be incorporated into the Scoping
Study. Lastly, the Company continues to progress potential
processing pathways for its significant low-grade Resource and will
also incorporate this into its study activities once a
metallurgical solution is in place.
Accordingly, the Company expects an updated Scoping Study,
incorporating these improvements, to be completed in H2 2023.
Corporate
Farm-In and Joint Venture Agreement
The Company executed a Farm-in and Joint Venture Agreement with
Octava Minerals Limited ("Octava") with respect to the right to
earn a 70% interest in its wholly owned Panton North and Copernicus
North Ni-Cu-PGM projects in the East Kimberly region of Western
Australia.
Future Metals issued 3.5 million new ordinary shares to Octava,
voluntarily escrowed for 12 months, as upfront consideration. The
Company is also, inter alia, required to make a final payment to
Octava of A$200,000 in 12 months from completion in cash or shares
(at Future Metals' sole election).
Financial commentary
The Quarterly Cashflow Report (Appendix 5B) for the period
ending 31 March 2023 provides an overview of the Company's
financial activities.
The Quarterly Cashflow Report (Appendix 5B) is available at the
following link:
http://www.rns-pdf.londonstockexchange.com/rns/7668X_1-2023-4-27.pdf
and on the Company's website.
The Company held approximately A$3.9 million in cash at the end
of the Quarter.
Expenditure on exploration during the Quarter amounted to
approximately A$1.45 million. Expenditure on metallurgical test
work and scoping study activities amounted to approximately A$73k.
Payments for administration and corporate costs amounted to
approximately A$675k. This included payments to related parties and
their associates of A$118k, comprising Director fees and
remuneration (including superannuation).
Statement of commitments
The Quarter is covered by the Statement of Commitments outlined
in the Company's ASX Prospectus dated 18 May 2021. A summary of
expenditure to date is outlined in the table below.
Proposed Use of Actual
Funds
13 June 2021 to (13 June 2021
13 June 2023 to
$ 31 March 2023)
$
Exploration & development
expenditure
-------------------------------------- ----------------
Panton Option consideration 3,000,000 3,000,000
-------------------------------------- ----------------
Estimated duty liability 1,755,495 560,415
-------------------------------------- ----------------
Drilling of extensions 2,000,000 5,625,061
-------------------------------------- ----------------
Metallurgical testwork 500,000 386,682
-------------------------------------- ----------------
Process design, mining and
development studies 1,000,000 646,151
-------------------------------------- ----------------
Other technical studies 500,000 -
-------------------------------------- ----------------
Assessment of complementary 500,000 -
assets or projects
-------------------------------------- ----------------
SUB-TOTAL 9,255,495 10,218,309
-------------------------------------- ----------------
Estimated cash expenses of
the Australian Offers 1,077,834 1,164,174
-------------------------------------- ----------------
Estimated cash costs for readmission
to AIM 1,124,334 910,800
-------------------------------------- ----------------
Administration costs 2,000,000 4,149,858
-------------------------------------- ----------------
Working Capital 768,200 85,964
-------------------------------------- ----------------
TOTAL 14,225,863 16,529,105
-------------------------------------- ----------------
For additional information please refer to ASX/AIM announcements
covered in this report:
-- 17 January 2023 | Farm-In Agreement Over East Kimberley
Ni-Cu-PGE Prospects
-- 17 January 2023 | Proposed issue of securities - FME
-- 19 January 2023 | Quarterly Activities and Cash Flow to 31
December 2023
-- 20 January 2023 | Notification regarding unquoted securities
- FME
-- 27 January 2023 | Application for quotation of securities -
FME
-- 2 February 2023 | Large Ni-Cu (PGE) Sulphide Zone Identified
at Panton
-- 8 February 2023 | Corporate Presentation, AMEC Investor
Briefing
-- 13 February 2023 | Mining and Processing Breakthrough at
Panton
-- 14 February 2023 | Corporate Presentation, RIU Fremantle
-- 15 March 2023 | Half Year Accounts to 31 December 2022
-- 21 March 2023 | High Grade Mineralisation Intersected in 350m
Step Out Hole
For further information, please contact:
Future Metals NL +61 8 9480 0414
Jardee Kininmonth info@future-metals.com.au
Strand Hanson Limited (Nominated Adviser) +44 (0) 207 409 3494
James Harris/James Bellman
Panmure Gordon (UK) Limited (UK Broker)
John Prior/Hugh Rich/Soman Thakran +44 (0)207 886 2500
FlowComms (UK IR/PR) +44 (0) 789 167 7441
Sasha Sethi
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as is forms part of
United Kingdom domestic law pursuant to the European Union
(Withdrawal) Act 2018, as amended by virtue of the Market Abuse
(Amendment) (EU Exit) Regulations 2019.
Competent Person's Statement
The information in this announcement that relates to Exploration
Results is based on, and fairly represents, information compiled by
Ms Barbara Duggan, who is a Member of the Australasian Institute of
Mining and Metallurgy and the Australian Institute of
Geoscientists. Ms Duggan is the Company's Principal Geologist and
has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity she is undertaking to qualify as a competent person as
defined in the 2012 Edition of the "Australasian Code for reporting
of Exploration Results, Exploration Targets, Mineral Resources and
Ore Reserves" (JORC Code). Ms Duggan consents to the inclusion in
this announcement of the matters based upon her information in the
form and context in which it appears.
The information in this announcement that relates to Mineral
Resources is based on, and fairly represents, information compiled
by Mr Brian Wolfe, who is a Member of the Australian Institute of
Geoscientists. Mr Wolfe is an external consultant to the Company
and is a full time employee of International Resource Solutions Pty
Ltd, a specialist geoscience consultancy. Mr Wolfe has sufficient
experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity he is
undertaking to qualify as a competent person as defined in the 2012
Edition of the "Australasian Code for reporting of Exploration
Results, Exploration Targets, Mineral Resources and Ore Reserves"
(JORC Code). Mr Wolfe consents to the inclusion in this
announcement of the matters based upon his information in the form
and context in which it appears.
Notes to Editors:
About the Panton PGM-Ni Project
The 100% owned Panton PGM-Ni Project is located 60kms north of
the town of Halls Creek in the eastern Kimberly region of Western
Australia, a tier one mining jurisdiction. The project is located
on three granted mining licences and situated just 1km off the
Great North Highway which accesses the Port of Wyndham (refer to
Figures One and Nine).
The Project hosts an independent JORC Code (2012) MRE of 129Mt @
1.20g/t PGM(3E) (1) , 0.19% Ni, 0.04% Cu and 154ppm Co (1.66g/t
PdEq) at a cut-off grade of 0.90g/t PdEq for contained metal of
5.0Moz PGM(3E) (1) , 239kt Ni, 48kt Cu and 20kt Co (6.9Moz PdEq).
The MRE includes a high-grade reef of 25Mt @ 3.57g/t PGM(3E) (1) ,
0.24% Ni, 0.07% Cu and 192ppm Co (3.86g/t PdEq) for contained metal
of 2.9Moz PGM(3E) (1) , 60kt Ni, 18kt Cu and 5kt Co (3.2Moz
PdEq).
PGM-Ni mineralisation occurs within a layered, differentiated
mafic-ultramafic intrusion referred to as the Panton intrusive
which is a 12km long and 3km wide, south-west plunging synclinal
intrusion. PGM mineralisation is hosted within a series of
stratiform chromite reefs as well as a surrounding zone of
mineralised dunite within the ultramafic package.
Figure Nine | Panton PGM Project Location
About Platinum Group Metals (PGMs)
PGMs are a group of six precious metals being platinum (Pt),
palladium (Pd), iridium (Ir), osmium (Os), rhodium (Rh), and
ruthenium (Ru). Exceptionally rare, they have similar physical and
chemical properties and tend to occur, in varying proportions,
together in the same geological deposit. The usefulness of PGMs is
determined by their unique and specific shared chemical and
physical properties.
PGMs have many desirable properties and as such have a wide
variety of applications. Most notably, they are used as
auto-catalysts (pollution control devices for ICE vehicles), but
are also used in jewellery, electronics, hydrogen production /
purification and in hydrogen fuel cells. The unique properties of
PGMs help convert harmful exhaust pollutant emissions to harmless
compounds, improving air quality and thereby enhancing health and
wellbeing.
Appendix One | Exploration and Mining Permits
Exploration & Mining Permits changes during the Quarter
Project Location Tenement Interest at Interest
beginning of at end of
Quarter Quarter
No changes during the Quarter
======== ==================================== ===========
Farm-In / Farm Out Agreement changes during the Quarter(^)
Joint Venture Project Location Tenement Interest Interest
at beginning at end of
of Quarter Quarter
Octava Minerals Panton North Western Australia E80/5455 - -
Ltd
Octava Minerals Copernicus Western Australia E80/5459 - -
Ltd North
================ ============= ================== ========= ============== ===========
^ During the Quarter the Company executed a farm-in and joint
venture agreement with Octava Minerals Ltd over two tenements, one
of which adjoins the Panton Project to the north. Future Metals may
earn up to 70% in the two tenements. Details of the transaction can
be found in the announcement 'Farm-In Agreement Over East Kimberley
Ni-Cu-PGE Prospects' released on 17 January 2023.
Interests in Mining & Exploration Permits & Joint
Ventures at 31 March 2023
Project Location Tenement Area Interest at
end of Quarter
Panton PGM-Ni Project Western Australia M80/103 8.6km(2) 100%
M80/104 5.7km(2) 100%
M80/105 8.3km(2) 100%
Panton North Western Australia E80/5455 8 BL -
Copernicus North Western Australia E80/5459 2 BL -
======================= =================== ========== ========== ================
Appendix Two | Panton Mineral Resource Estimate (JORC Code
2012)(2)
Resource Category Mass Grade Contained Metal
------
(Mt) Pd Pt Au PGM(3E) (1) (g/t) Ni Cu Co PdEq(2) Pd Pt Au PGM(3E) (Koz) Ni Cu Co PdEq(2)
(g/t) (g/t) (g/t) (%) (%) (ppm) (g/t) (Koz) (Koz) (Koz) (kt) (kt) (kt) (Koz)
----------- ====== ------- ------- ------- =================== ====== ----- ------- ========= ------- ------- ------- =============== ======= ------ ------ =========
Reef Indicated 7.9 1.99 1.87 0.31 4.16 0.24 0.07 190 4.39 508 476 78 1,062 19.1 5.2 1.5 1,120
----------- ====== ------- ------- ------- =================== ====== ----- ------- ========= ------- ------- ------- =============== ======= ------ ------ =========
Inferred 17.6 1.59 1.49 0.22 3.30 0.23 0.07 193 3.63 895 842 123 1,859 41.1 13.1 3.4 2,046
---------------------- ====== ------- ------- ------- =================== ====== ----- ------- ========= ------- ------- ------- =============== ======= ------ ------ =========
Subtotal 25.4 1.71 1.61 0.24 3.57 0.24 0.07 192 3.86 1,403 1,318 201 2,922 60.3 18.2 4.9 3,166
---------------------- ====== ------- ------- ------- =================== ====== ----- ------- ========= ------- ------- ------- =============== ======= ------ ------ =========
Dunite Inferred 103.4 0.31 0.25 0.07 0.62 0.17 0.03 145 1.12 1,020 825 225 2,069 179.6 30.2 15.0 3,712
----------- ====== ------- ------- ------- =================== ====== ----- ------- ========= ------- ------- ------- =============== ======= ------ ------ =========
Subtotal 103.4 0.31 0.25 0.07 0.62 0.17 0.03 145 1.12 1,020 825 225 2,069 179.6 30.2 15.0 3,712
---------------------- ====== ------- ------- ------- =================== ====== ----- ------- ========= ------- ------- ------- =============== ======= ------ ------ =========
All Indicated 7.9 1.99 1.87 0.31 4.16 0.24 0.07 190 4.39 508 476 78 1,062 19.1 5.2 1.5 1,120
----------- ====== ------- ------- ------- =================== ====== ----- ------- ========= ------- ------- ------- =============== ======= ------ ------ =========
Inferred 121 0.49 0.43 0.09 1.01 0.18 0.04 152 1.48 1,915 1,667 347 3,929 219.7 43.2 18.4 5,758
---------------------- ====== ------- ------- ------- =================== ====== ----- ------- ========= ------- ------- ------- =============== ======= ------ ------ =========
Total 129 0.58 0.52 0.10 1.20 0.19 0.04 154 1.66 2,423 2,143 425 4,991 238.8 48.4 19.9 6,879
---------------------- ------ ------- ------- ------- ------------------- ------ ----- ------- --------- ------- ------- ------- --------------- ------- ------ ------ ---------
(Notes)
(1) Please refer to the paragraph below for palladium equivalent
(PdEq) calculation
(2) No cut-off grade has been applied to reef mineralisation and
a cut-off of 0.9g/t PdEq has been applied to the dunite
mineralisation
(1) PGM(3E) = Palladium (Pd) + Platinum (Pt) + Gold (Au)
(2) Metal equivalents were calculated according to the follow
formulae:
-- Reef: PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.76471 x
Pt(g/t) + 0.875 x Au(g/t) +1.90394 x Ni(%) + 1.38936 x Cu(%) + 8.23
x Co(%)
-- Dunite: PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.76471 x
Pt(g/t) + 0.933 x Au(g/t) +2.03087 x Ni(%) + 1.481990 x Cu(%) +
8.80 x Co(%)
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