29 April 2024
Future
Metals NL
Quarterly
Activities Report for quarter ended
31 March
2024
Future Metals NL ("Future Metals" or the "Company", ASX | AIM: FME) is pleased to
announce its Quarterly Activities and Cashflow Report for the
quarter ended 31 March 2024 (the "Quarter").
Highlights
§ Multiple magmatic sulphide
drill targets identified along the ~18km Alice Downs Corridor
within Future Metals' exploration acreage and ~12km NE of its
Panton PGM Project
§ Drilling planned within the
Alice Downs Corridor for commencement in the forthcoming dry
season, targeting new copper discoveries and extensions of known
near-surface mineralisation
§ 3D modelling at the Eileen
Bore target (within the Alice Downs Corridor), has demonstrated
that the down-plunge of existing mineralisation remains
open. Significant historical intersections
include:
o
120m @ 0.73% Cu, 0.29% Ni & 0.86g/t PGM3E from
0m (EOH1) (EBRC 010)
§ Incl. 16m @ 1.0% Cu,
0.36% Ni & 0.99g/t PGM3E from 100m
o 96m
@ 0.70% Cu, 0.29% Ni & 0.78g/t PGM3E from 24m (EOH)
(EBRC 003)
§ Incl. 10m @ 1.08% Cu,
0.34% Ni & 1.04g/t PGM3E from 56m
§ Additional targets have been
identified at Palamino and Salk with ultramafic host rocks
structurally analogous to the nearby Copernicus Ni-Cu
Mine
§ Progressing low expenditure
activities at the Panton PGM Project (in order to preserve cash
resources due to historically low PGM commodity prices) including
offtake / end user discussions and additional metallurgical
optimisation
§ Strategic Board changes
implemented to grow in-house expertise and aid both planned future
development of the Panton PGM Project and assessment of accretive
acquisition opportunities
§ Completion of a A$3.3m fully
underwritten rights issue
Strategic Exploration Position
Planning underway
for initial exploration drill programme on the
18km Alice Downs Corridor within the
Company's tenure, with confirmed
nickel-copper sulphide mineralisation targets including Eileen
Bore, Palamino, and Salk (see Figure
One) for commencement in the forthcoming
dry season.
The Alice Downs Corridor targets are
located within a 20km radius of the Company's 100%
owned Panton Project in the highly prospective
East Kimberley region of Western Australia. Broad zones of disseminated and net-textured copper and nickel
sulphides occur within the host intrusions and are comprised of
chalcopyrite, pyrrhotite, pentlandite and pyrite. The previously
mined Copernicus deposit is one such example.
Most of the project area is under
cover which has limited the effectiveness of historical surface
sampling. There is significant potential for blind deposits with no
surface anomalism. There is an existing extensive exploration
dataset for parts of the tenement area, including geophysical
surveys, magnetics, gravity, Versatile Time Domain Electromagnetic
("VTEM") and Induced
Polarisation ("IP"), which
is concentrated at the Eileen Bore Prospect. The main focus of
historical drilling has been on the near-surface mineralisation at
Eileen Bore.
A review of historical third party
drilling combined with geophysical and structural interpretations
has identified multiple mineralised bodies with a NW plunge
proximal to the Alice Downs Fault, with historical drilling
ineffectively testing such targets.
Eileen Bore Prospect
The
Eileen Bore Prospect is an advanced exploration target with
historic drilling confirming wide zones of consistent Cu-Ni-PGM
mineralisation from surface along a known strike of approximately
300m.
Mineralisation remains open down
plunge and at depth, with mineralisation only tested to 96m to
date.
A total of 5,761m over 60 holes has
been drilled at Eileen Bore. This historical drilling demonstrated
a disseminated Cu-Ni-PGM magmatic sulphide body within a
gabbro-pyroxenite host that extends over ~300m of strike. Multiple
holes have ended in mineralisation and modelling suggests that
mineralisation is focused within a synformal fold axis and is
plunging to the north-northwest. Drilling down plunge remains open
with scope for significant additional mineralisation
(see Figure Two).
Figure One | Regional Plan
showing main targets along the Alice Downs Corridor 18km strike.
Note the location of the Eileen Bore inset Map expanded in
Figure Three.
Figure Two | Cross section of
drilling at Eileen Bore demonstrating that mineralisation remains
open at depth.
Historical drilling results include:
o 120m @ 0.73% Cu, 0.29% Ni & 0.86g/t PGM3E from
0m (EOH) (EBRC 010)
§ Incl. 16m
@ 1.0% Cu, 0.36% Ni & 0.99g/t PGM3E from
100m
o 96m
@ 0.70% Cu, 0.29% Ni & 0.78g/t PGM3E from 24m (EOH)
(EBRC 003)
§ Incl. 10m
@ 1.08% Cu, 0.34% Ni & 1.04g/t PGM3E from
56m
o 84m
@ 0.54% Cu, 0.24% Ni & 0.75g/t PGM3E from 36m (EOH)
(EBRC 011)
o 47m
@ 0.62% Cu, 0.30% Ni & 0.60g/t PGM3E from
3m(AD07)
o 36m
@ 0.53% Cu, 0.25% Ni & 0.59g/t PGM3E from
40m(EBRC 002)
o 64m
@ 0.77% Cu & 0.30% Ni from 32m (EoH)
(EP09)
o 52m
@ 0.74% Cu & 0.29% Ni from 10m (EP08)
Additional compelling targets at
Eileen Bore are situated to the northeast of the area that has been
previously drilled, in an antiformal fold axis and to the south
along the Alice Downs Fault in a synform. To the north, Drill
Target 2 is based on coincident magmatic chalcopyrite-pyrrhotite
mineralisation identified in peridotite rock chips by petrology and
is associated with Ni-Cu, PGE and Au soil anomalism. There is no
historical drill testing in the area. To the south, Drill Target 3
is associated with the same coincident soil anomalism identified at
Eileen Bore and Drill Target 2, which has also not been drill
tested. The targets are outlined in Figure Three below.
Figure Three | Eileen Bore
Prospect showing three main drill areas: down plunge mineralisation
from section A-A' and Drill Targets 2 and 3.
Additional Targets
The Salk prospect is situated along
strike to the north of Eileen Bore within the same 100% owned
exploration tenement. Historical drilling at Salk identified
nickel-copper mineralisation in an ultramafic that is interpreted
to be in a fault offset position from the Copernicus Mine. Results
included 17m @ 0.31% Ni and 0.18% Cu from 36m (including 2m @ 0.68%
Ni and 0.31% Cu). The current structural interpretation suggests
that the mineralisation plunges to the northwest and drilling at
Salk has only occurred to the south.
The Palamino prospect is further
along strike to the north, within the farm-in joint venture area
with Octava Minerals Ltd (ASX:OCT), where Future Metals is earning
a 70% interest (see Figure
One). Historical drilling confirmed a thick
pyroxenite body dipping to the northwest not previously mapped.
Disseminated sulphides were intersected, with the best results
being 5m @ 0.39% Ni and 0.32% Cu in drill hole WCR016 (ASX:OCT 13
Feb 2024).
Forward Exploration Plan
The Company is planning a drilling
campaign to test the down plunge extension of Eileen Bore and
confirm adjacent near-surface economic mineralisation at Drill
Targets 2 and 3. This initial stage of drilling is currently
intended to commence in Q3 2024. Follow-up stages will occur if
initial drilling determines the potential for material economic
mineralisation.
In addition, field mapping and
sampling will be undertaken along the Alice Springs Corridor, with
a particular focus on Palamino and Salk to confirm the current
geological model and refine these drill targets.
Panton PGM Project
Following the release of the Scoping
Study over the Panton PGM Project in December 2023, Future Metals
has continued to progress the development of the asset in line with
the Company's strategy of ensuring that Panton is development-ready
in time for the next PGM price upswing.
The Scoping Study highlighted the
potential for Panton to be one of the few significant primary PGM
operations in the western world. The Study supports a high-grade,
initial 9-year operation processing both Reef and High-Grade Dunite
material through a conventional crush, grind and flotation flow
sheet, producing:
Avg.
Production
|
PGM
(Oz
pa)
|
Chromite
Conc.
(Tpa)
|
Nickel
(Tpa)
|
PdEq2
(Oz
pa)
|
1,250ktpa
|
117,000
|
134,000
|
1,200
|
161,000
|
The Study also highlighted robust
economics, with Panton demonstrating strong financial metrics that
reflect the Project's high grade and low capital
intensity.
During the Quarter, the Company
initiated discussions with certain offtakers and end users to
assess potential future commercial relationships between the
parties. In particular, Future Metals is focused on promoting
Panton PGM concentrate as an alternative supply of material scale
versus current production, which is sourced from high sovereign
risk jurisdictions, including South Africa, Russia, and Zimbabwe
(representing ~85% of current global production).
Future Metals also sees strong
potential for further metallurgical improvements to the Panton PGM
concentrate, including additional minor payable metals and further
flowsheet simplification. The Company has made preliminary steps to
continue progressing these initiatives during the Quarter while
maintaining a focus on limiting expenditure on material-scale test
work programmes to preserve capital during the current period of
low PGM commodity prices.
M&A Due Dilligence
The Company is undertaking an active
programme of due diligence on resource asset acquisitions that
could potentially complement the current development and
exploration strategy at the Panton PGM Project and the Eileen Bore
Cu-Ni-PGM mineralisation.
In particular, the Company is
currently focused on assessing potential copper opportunities that
could add material shareholder value through near-term development.
Corporate
Capital Raising
Future Metals successfully raised A$3.3M
(before costs) via a fully underwritten non-renounceable
Entitlement Issue (the "Entitlement Issue"). Net proceeds from
the Entitlement Issue will be used for drilling and exploration
activities and to progress value enhancement workstreams for the
Panton Project, following the recent completion of the Panton
Scoping Study.
Strategic Board Changes
The Company announced certain strategic Board
changes in line with the continued development of the Panton PGM
Project and its overall growth.
Mr Jardee Kininmonth resigned as Managing
Director and CEO and will leave the Company following a transition
period to the end of May to handover his responsibilities.
Non-Executive Director, Elizabeth Henson stepped down to focus on
her other business interests. Mr John Carr and Mr Sam Rodda joined
the Company as Non-Executive Directors.
Jardee played a critical role in directing the
Company's overall strategy and demonstrating the significant value
of the Panton PGM Project. This is highlighted by the successful
delivery of the upgraded JORC 2012 Mineral Resource Estimate
("MRE"), the subsequent
delivery of the Panton Scoping Study, and significantly expanding
the Company's strategic exploration position in a highly
prospective region.
John Carr is an entrepreneur, executive and
chemical engineer and notably was co-founder of New Century
Resources, which acquired and restarted the Century Zinc Mine in
Queensland, Australia. As Chief Development Officer, John was
responsible for developing the large-scale brownfield base metal
mine re-start and expansion at Century, now a top-15 global zinc
producer and Australia's largest tailings reprocessing operation.
John also led the acquisition of the Mt Lyell Copper Mine from
Vedanta Resources. In 2023, New Century was acquired by
multinational PGM and gold producer, Sibanye Stillwater
Ltd.
Sam Rodda's appointment to the Board of Future
Metals provides additional capacity and competence in the planned
development of future operations at Panton. Sam has broad
experience in technical and commercial roles within the mining
industry. Notably, Sam was previously Managing Director of the
ASX-listed PGM developer Podium Minerals Limited. Sam has also held
significant operational roles at a number of large underground and
open pit mining operations in Australia and internationally,
including at MMG Limited, where he held the position of General
Manager Operations and Technical Excellence. Sam has also held
senior roles within WMC and BHP Billiton.
Future Metals'
Executive Chairman, Mr Patrick Walta,
commented: "The Board changes complement the Company's
continued progression of Panton toward future operations. Now is
the right time to appoint the team that will lead Future Metals
through the final feasibility stages to be production-ready during
the next PGM price upswing."
Octava Limited Joint Venture
During the Quarter the Company issued 6,674,887
new ordinary shares to Octava Minerals Limited in accordance with
the terms of its joint venture, whereby Future Metals may earn up
to a 70% interest in various tenements, subject to minimum annual
expenditure commitments. Please refer to the Company's announcement
dated 17 January 2023 for further details.
Financial Commentary
The Quarterly Cashflow Report (Appendix 5B) for
the period ending 31 March 2024 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/3902M_1-2024-4-29.pdf and
on the Company's website.
The Company held approximately A$2.94m in cash
at the end of the Quarter.
Exploration and project development expenditure
during the Quarter amounted to approximately A$345k. Payments for
administration and corporate costs amounted to approximately
A$325k. This included payments to related parties and their
associates of A$167k, comprising Director fees and remuneration
(including superannuation).
In addition, the Company announces that Strand
Hanson Limited has assumed the role of sole broker to Future Metals
with immediate effect.
For additional information please refer to the
ASX/AIM announcements covered in this report:
§ 2 April
2024 | Final Director's Interest Notice
§ 27 March
2024 | Board and Management Changes
§ 26 March
2024 | Initial Director's Interest Notice
§ 22 March
2024 | Board Changes
§ 15 March
2024 | Half Yearly Report and Accounts
§ 6 March
2024 | Cleansing Notice
§ 1 March
2024 | Change of Director's Interest Notice
§ 1 March
2024 | Application for quotation of securities - FME
§ 1 March
2024 | Application for quotation of securities - FME
§ 28
February 2024 | Proposed issue of securities - FME
§ 15
February 2024 | Investor Presentation RIU Explorers Conference
February 2024
§ 13
February 2024 | Multiple Drill Targets Identified Along 18km
Corridor
§ 9 February
2024 | Change of Director's Interest Notice
§ 8 February
2024 | Application for quotation of securities - FME
§ 8 February
2024 | Future Metals Successfully raises A$3.3M
§ 8 February
2024 | Supplementary Prospectus
§ 31 January
2024 | Quarterly Activities and Appendix 5B Cash Flow
Report
§ 17 January
2024 | Company Update
§ 15 January
2024 | Proposed issue of securities - FME
§ 15 January
2024 | Entitlement Issue - Extension of Closing Date
§ 9 January
2024 | Restricted Securities to be Released from Escrow
§ 5 January
2024 | Letter to Shareholders and Despatch to Eligible
Shareholders