REG - Future Metals NL - JORC Mineral Resource Estimate
21/06/2022 07:00
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RNS Number : 5267P Future Metals NL 21 June 2022
Future Metals NL
Independent JORC Mineral Resource Estimate of 6.9Moz PdEq(1)
for Panton PGM-Ni Project
Future Metals NL ("Future Metals" or the "Company", ASX | AIM: FME), is
pleased to announce an updated independent JORC Code (2012) Mineral Resource
Estimate ("MRE") for its 100% owned Panton PGM-Nickel Project ("Panton PGM-Ni
Project") in northern Western Australia of 5.0Moz palladium, platinum and gold
("PGM(3E)") and 238kt Ni, at a grade of 1.66g/t PdEq(1).
Highlights
§ Updated MRE confirms the Panton PGM-Ni deposit to be of a global scale:
o 129Mt @ 1.20g/t PGM3E, 0.19% Ni, and 154ppm Co (1.66g/t PdEq(1))
o Containing 5.0Moz PGM3E, 239kt Ni, and 20kt Co (6.9Moz PdEq(1))
§ Represents a 108% increase in contained PGM(3E) whilst the contained
Nickel resource has increased by 526% during the Company's 12 months of
ownership of the Panton PGM-Ni Project
§ Includes the outcropping, contiguous high-grade reef, providing excellent
development optionality:
o 25Mt @ 3.57g/t PGM3E, 0.24% Ni, and 192ppm Co (3.86g/t PdEq(1))
o Containing 2.9Moz PGM3E, 60kt Ni, and 5kt Co (3.2Moz PdEq(1));
remodelled to be more suitable to potential underground mining widths
§ Second largest PGM deposit in Australia, only surpassed by Chalice Mining
Ltd's Gonneville discovery which has an MRE of 10Moz PGM3E, 530kt Ni, 330kt
Cu, 53kt Co at 1.60g/t PdEq(1)
§ Bulk dunite mineralisation, from surface and constrained to a vertical
depth of approximately 150m
o Drilling confirms bulk dunite mineralisation continues well beyond
current MRE with drilling to 800m
o Over 13,500oz PGM3E and 1,100t Ni per vertical metre in top 150 vertical
metres
§ Updated MRE follows 6,000m of new drilling and 1,500m of historical drill
core assaying to add to over 40,000m of historical drilling
§ Significant further growth potential with the Panton deposit remaining
'open' at depth and along strike:
o MRE excludes the large 'Northern Anomaly' where drilling confirms broad
widths of PGM, Ni and Cu mineralisation from surface across a strike of 2.5km
§ Contact-style disseminated mineralisation potentially similar to Platreef,
and the Callisto discovery, with strong potential for zones of enhanced
sulphide mineralisation along strike and at depth
o Numerous near-surface zones within current MRE area which are limited by
drilling however geological understanding supports continuity along strike and
at depth
§ MRE demonstrates the Panton PGM-Ni Project to be a highly strategic,
large-scale PGM-Ni project in the Tier One jurisdiction of Western Australia
on granted Mining Leases
§ Metallurgical test work underway, replicating flowsheets of analogous
operating mines in South Africa, including the Sedibelo PGM mine which has
comparable mineralogy and grade
§ Scoping development studies to commence, assessing optimal development
pathways for Panton assessing both high-grade and bulk tonnage scenarios and a
combination of both, leading into a planned Pre-Feasibility Study, in parallel
with further exploration and metallurgical work
§ Company remains well funded with cash of approximately A$3.6m (as at 31
May 2022) to advance low-cost test work and development studies
( )
(1) Refer below for palladium equivalent (PdEq) calculation
(
)
Mr Jardee Kininmonth, Managing Director & CEO of Future Metals, commented:
"This updated JORC resource estimate of 5.0Moz of PGM3E and 238kt of nickel is
a pivotal milestone for the Company, demonstrating the potential for Panton to
be a PGM-Ni project of global scale outside the primary supply jurisdictions
of Russia and South Africa. The inclusion of the mineralised envelope
surrounding the chromite reefs has significantly increased Panton's Resource
and scale potential, growing contained ounces of PGM's by over 100% and
increasing the contained nickel by over 500%.
There remains significant exploration upside at Panton with potential to add
both tonnes and grade across numerous targets. We intend to follow up the
success of the new MRE with a drill programme which will test a number of
exploration targets including the impressive Northern Anomaly which is highly
prospective for concentrated sulphide zones.
The Company continues to progress the metallurgy work at Panton, expanding on
early exploratory sighter test work with a more systematic programme where
analogous projects from the PGM industry in South Africa are being utilised to
determine an appropriate flow sheet configuration for the Panton
mineralisation.
We are now able to move towards a scoping study to make a preliminary
assessment on the best path forward for Panton."
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 Figure One).
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 One | Panton PGM Project Location
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Table One | Panton Mineral Resource Estimate (JORC Code 2012)
Resource Category Mass Grade Contained Metal
(Mt) Pd Pt Au PGM(3E) (g/t) Ni Cu Co PdEq(1) Pd Pt Au PGM(3E) (Koz) Ni Cu Co PdEq(1)
(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
(1) Refer to the 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
Panton Mineral Resource Estimate Overview
The MRE at Panton has increased to 129Mt @ 1.20g/t PGM3E, 0.19% Ni, 0.04% Cu
and 154ppm Co (1.66g/t PdEq(1)) at a cut-off grade of 0.90g/t PdEq for
contained metal of 5.0Moz PGM3E, 239kt Ni, 48kt Cu and 20kt Co (6.9Moz
PdEq(1)).
The MRE includes the high-grade reef of 25Mt @ 3.57g/t PGM3E, 0.24% Ni, 0.07%
Cu and 192ppm Co (3.86g/t PdEq(1)) for contained metal of 2.9Moz PGM3E, 60kt
Ni, 18kt Cu and 5kt Co (3.2Moz PdEq(1)).
Panton's previous MRE, previously reported in the Company's prospectus dated
18 May 2021, related entirely to the high-grade chromite reefs and did not
include any of the mineralised dunite material which envelopes the reefs. The
mineralised dunite increases the width of the mineralisation significantly,
allowing for the estimation of a bulk-tonnage MRE which supports assessment of
potential open-pit mining scenarios, along with a high-grade operation.
This MRE update includes the dunite portion of the mineralisation, down to an
approximate depth of just ~150m (300mRL). The high-grade reef and lower-grade,
bulk dunite mineralisation have been estimated separately given their
geological and mineralogical differences. The individual estimates are
detailed in Table One below.
The dunite mineralisation has been modelled at a 0.5g/t PdEq grade shell and
reported using a PdEq lower cut-off grade of 0.9g/t. This is considered
appropriate given the multi-element nature of the mineralisation. The reef has
been geologically constrained rather than utilising a cut-off grade. Inputs
for the PdEq calculations are set out below.
Geological modelling of the new MRE has expanded the reef mineralisation to
include the higher-grade mineralisation around the margins to the reefs. As
such, this has resulted in a reef interpretation that is wider and less
tightly constrained than in the previous MRE leading to an increase in tonnes
and an increase in contained metal (more than offsetting a slight decrease in
grade). This is considered a more appropriate level of granularity given the
drill spacing across the Resource, particularly at depth, and models the reef
in line with potential mining widths for underground mining. The strike length
of the reef has also increased due to drilling intercepts not previously
incorporated into the resource modelling.
The new MRE was prepared independently by International Resource Solutions Pty
Ltd and reported in accordance with the JORC Code (2012).
Figure Two | Panton PdEq Grade-Tonnage Curve
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Figure Three | Panton Plan View - Resource Area
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Figure Four | 3D View of Panton MRE Area Looking North-West
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Figure Five | Plan View of Panton including MRE area
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Figure Six | Cross Section of Panton Block Model - A Block
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Figure Seven | Cross Section of Panton Block Model - C Block
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Development Optionality | Forward Planning
The new MRE enables the Company to better assess the optimal development
options available for the Panton PGM-Ni Project. The significant high-grade
component of the MRE provides the Company with optionality on the potential
future development path. This component of the MRE outcrops, is highly
contiguous and has already been subject to extensive metallurgical flotation
test work which has shown PGM recoveries to exceed 70% to a high-grade PGM
concentrate grading >130g/t PGM, with testwork from Panoramic Resources
demonstrating recoveries of over 80% and concentrate grading >200g/t PGM.
The Company is currently undertaking optimisation test work on the bulk PGM-Ni
mineralisation. The MRE demonstrates the extent of this PGM-Ni mineralisation
which may also provide scope for the Company to consider the production of
high-value intermediate products.
Concurrent with this work, the Company will undertake scoping studies on the
high-grade component and continue to delineate and explore for additional PGM,
Ni and Cu mineralisation.
Exploration and Resource Growth
The MRE relates solely to the 5.1km of strike shown in Figure 5. There is a
further ~7km of mapped outcropping reefs and associated anomalous surface
geochemical samples (MAGLAG) which remain largely untested, located outside
the MRE area. At depth, the deepest drill holes are approximately 800m, the
majority of which intersect high-grade reef mineralisation. The high-grade
reef is interpreted to be flattening as it dips to the south-west.
The Northern Anomaly & A Block North ("Lower Zone") is a significant
target for follow up drilling, demonstrating potential for Resource volume
growth as well as hosting zones with increased concentration of sulphides. The
Lower Zone is interpreted to be a different style of mineralisation to the
'reef-style' mineralisation of the MRE area, as it is located closer to the
basal contact zone, its mineralisation is more disseminated, and it
demonstrates a higher base metals to PGM ratio. This 'contact-style'
mineralisation is known to exhibit short-range variation in grades due to
changes in the local geological structure. Examples of 'contact-style'
mineralisation include Chalice Mining Ltd's recent Gonneville discovery,
Ivanhoe's Flatreef project and the recent Callisto discovery by Galileo Mining
Ltd.
The Company is currently planning further exploration drilling to test areas
of potentially increased sulphide mineralisation along the strike and at depth
at the Lower Zone. This planning includes the review of existing airborne
aeromagnetic and electromagnetic data.
Figure Eight | 3D View of Panton MRE Area Looking North-West, including drill
holes
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Figure Nine | Plan View of Panton including target zones for near-surface
exploration
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(http://www.rns-pdf.londonstockexchange.com/rns/5267P_1-2022-6-20.pdf)
Metallurgical Update
The remodelling of the previous MRE to include shallow, bulk PGM and Ni
mineralisation provides the scale to enable the Company to consider future
processing of the lower grade PGM and Ni mineralisation. The Company's test
work is now focussed on optimising recoveries and concentrate grades on the
lower grade, bulk mineralisation.
Initial sighter test work on both low-grade composites (~2.3g/t PGM3E) and
high-grade composites (~7.6g/t PGM3E), using a single stage rougher-scavenger
test, yielded PGM3E recoveries of up to 68% and 71% respectively (with higher
Pd recovery relative to the Pt recovery) with concentrate grades of up to
17g/t PGM3E for the low-grade composite and ~130g/t PGM3E for the high-grade
composite. No cleaning stages were completed during these tests. Previous test
work by Panoramic Resources on high-grade composites achieved recoveries of
more than 80% and concentrate grades over 200g/t PGM3E. Recoveries for Ni
ranged from 45 - 52% from a calculated head grade of 0.25% Ni across both the
reef and dunite mineralisation.
These initial tests were exploratory in nature and the Company expects to
achieve enhanced results as part of a more systematic programme as set out
below.
Physical Separation
The Company has commenced physical separation test work utilising processing
techniques which pre-concentrate or separate material feed based on its
physical characteristics such as size, density or colour. Panton
mineralisation is suitable given the difference in colour and density between
chromite-rich ore, dunite, magnesite and talc. The Company is currently
completing an ore sorting test work programme on a composite comprising the
anticipated material feed from a bulk tonnage operation, supported by the new
MRE. This may allow for the removal of gangue minerals ahead of the milling
circuit. Prior test work has also demonstrated the amenability of extracting
chromite from flotation tails to produce a chromite concentrate for sale as a
by-product.
Flotation
The Company is undertaking flotation test work which seeks to replicate the
unit operations common to South African PGM operations. This campaign will
focus on the mineral deportment at each stage across a 3-stage mill-float flow
sheet involving an initial coarse grind and flash float, primary grind and
float, and regrind and float with cleaning. The majority of the previous test
work on Panton high-grade mineralisation utilised a single-stage grind
followed by a rougher float and scavenging stage. Initial sighter test work
indicates that a single-stage grind generates slimes and liberates
free-floating gangue materials which inhibit the flotation of the base metal
and PGM-bearing minerals. A multi-staged approach avoids the issues associated
with overgrinding, allows reagent regime to be adjusted through the flow sheet
based on targeted outcomes at each stage, and reduces the mass pull and
improve the PGM concentrate grade.
Given the mineralogical differences between the chromite reef and dunite
mineralisation it is likely that two separate flow sheets will be developed
for processing Panton mineralisation. This is common in South African
operations which process Merensky (silicate) ores and UG2 (chromite) ores. The
Sedibelo PGM project has been operating for over a decade and is particularly
analogous to Panton given it is an open-pit operation mining a lower-grade
silicate ore and a higher-grade chromite ore.
Hydrometallurgy
Prior test work has shown the potential for Panton to produce high value
intermediate products with the Panton concentrate having good amenability to
hydrometallurgical processing which provides several potential benefits over
smelting 1 , including:
· producing a refined product, allowing the producer to market directly
to end customers, thereby improving payabilities and margins;
· less capital intensive;
· faster relative processing times leading to working capital position
improvement;
· significantly less electricity consumption and reduction in SO2 and
CO2 emissions; and
· increased flexibility for integrated upstream production.
A hydrometallurgy test work programme and scoping review will be initiated in
H2 2022.
Summary of Resource Estimate and Reporting Criteria
Geology and mineralisation
The Panton Intrusion is a layered mafic-ultramafic intrusion situated within
the structurally complex Central Zone of the Halls Creek Orogen ("HCO"), in
the Kimberley region of Western Australia. The HCO consists of three
north-north-easterly trending, highly deformed, medium to high-grade
metamorphic zones comprising sedimentary, volcanic and intrusive rock suites.
The HCO separates the Paleoproterozoic Kimberley Basin to the northwest, and
the late Archaean Granites-Tanami Region to the southeast.
In outcrop the Panton Intrusion is a 12km long, 3km wide and 1.7km thick
layered, differentiated ultramafic-mafic body.
The Panton Intrusion comprises a basal ultramafic zone of chromite rich
olivine cumulate rocks; dunites, peridotites and transitional rocks, with an
overlying mafic zone of similar thickness made up of leucogabbro, gabbro,
ferrogabbro, gabbronorites, norites, pyroxenites, and anorthosite units.
The Panton Intrusion has undergone a number of structural deformation events.
These various events have resulted in large scale folding, faulting and
widespread shearing of the ultramafic/mafic sequence. The intrusion is
asymmetrically folded into a tight syncline, which gently plunges to the
southwest. The fold is closed at the north-eastern end and faulted off at the
southwest end. Other dominant structural features include the numerous small
scale and lesser large-scale faulting. The main orientation of faults strike
north-south and nearly all have a sinistral movement sense; with displacements
from cm scale to in the order of 1,000m for the large fault separating the C
and D sub Blocks. Faulting orthogonal to this set is present but less
pronounced.
The interpreted weathering profile for Panton is relatively simple, showing a
resemblance to the topographic profile. There is a thin veneer of highly
weathered material, consisting of predominantly red-brown soil, alluvium and
colluvium that covers much of the project area. Its depth ranges from a few
centimetres to up to 10m but is largely confined to less than 1m.
In all there are three mineralised horizons, the Upper group chromitites
(situated within the upper gabbroic sequence), the Middle group chromitites
(situated in the upper portion of the ultramafic cumulate sequence) and the
Lower group chromitites (situated toward the base of the ultramafic cumulate
sequence). The primary PGM resource is contained within the upper portion of
the ultramafic sequence, which in turn has been divided into five zones:
1. Top Reef Mineralised Zone: a sheared
chromitite/talc-carbonate-chromitite rock zone (average 1.5m true thickness)
2. Upper Dunite: comprising all rocks between the top and middle reef
mineralised zones
3. Middle Reef Mineralised Zone: a thin (average 0.5m true thickness)
chromitite reef with an associated talc-carbonate alteration halo
4. Lower Dunite: comprising all rocks between the middle and lower reef
mineralised zones
5. Lower reef Mineralised Zone
Drilling techniques and hole spacing
Pancontinental Mining Ltd ("Pancontinental") and Minsarco Resources
("Minsarco") drill holes (PS001 to PS058) were drilled by diamond core
drilling, either HQ or NQ2. A number of drill holes have daughter drill holes
that were drilled BQ in size. Platinum Australia Limited ("PLA") drill holes,
PS059 to PS379 were drilled using reverse circulation ("RC") and diamond
coring, either PQ3, HQ3 or NQ3 in size. RC drilling employed a face sampling
bit. A number of drill holes had RC pre-collars drilled in advance of a
diamond core tail, but a number of drill holes were drilled completely with
RC.
All of Future Metals' drill holes were diamond core holes, either PQ3, HQ3 or
NQ3 in size. The top 50m (approximately) of the drill holes were often drilled
in PQ3 until competent rock was encountered. The drill hole was then cased off
and continued in HQ3 size core drilling. Where there was a need to case off
the HQ3 core drilling if the hole had difficulties, it was then continued in
NQ3 size core drilling. PQ3 core diameter is 83.0mm, HQ3 core diameter is
61.1mm, NQ3 core diameter is 45.0mm, BQ core diameter is 36.5m. RC drilling
bits have a diameter of 15.9cm.
Future Metals' drill holes HQ3 and NQ3 core was orientated using a BLY TruCore
UPIX Orientation Tool. PLA drill holes HQ3 and NQ3 core was orientated using a
Reflex Orientation Tool. Pancontinental drill holes HQ3, NQ3 and BQ core was
not orientated. Triple tubes are utilised in the weathered horizon (less than
10m) and standard tubes for the remainder of the drill hole.
Each core run was measured and checked against drillers' core blocks. Any core
loss was noted. To date core recoveries have been excellent with very little
core loss reported. All RC drill hole samples were weighed in the field as a
method of recording sample quality and recovery.
Drilling is planned to be as close to orthogonal to the mineralisation as
practicable to get representative samples of the mineralisation. Data
spacing down hole is considered appropriate at between 0.25m and 1m intervals.
Sampling and analysis methodology
All drill core and RC samples have been logged onsite by geologists to a level
of detail to support appropriate Mineral Resource estimation, mining studies
and metallurgical studies. The logging is qualitative and records lithology,
grain size, texture, weathering, structure, alteration, veining and sulphides.
The core was digitally photographed, and all holes are logged in full.
All core that is sampled is cut using a diamond saw. HQ3, NQ2 and BQ core is
cut in half with one half submitted for assaying and the other retained for
reference. PQ3 core is cut in half, and then one half cut again into quarters.
One quarter core is sent to the laboratory for assay and the remainder is kept
for reference.
RC drilling was sampled from a rig mounted riffle splitter in 1m, or 0.5m
intervals. Virtually all of the RC samples were dry, a small percentage were
damp or wet, which was recorded in the logs. Sections of drill holes logged as
unmineralised were samples of 4m composites using a PVC spear.
Generally, core samples are 1m in length, with a minimum sample length of
25cms. Sample lengths are altered from the usual 1m due to geological
contacts, particularly around the chromitite reefs.
Future Metals sent assays for all drill holes to Bureau Veritas in Perth for
Au, Pt and Pd analysis by lead collection fire assay (FA003) and As, Co, Cr,
Cu, Ni and S by Mixed Acid Digest ICP-AES (MA101). PLA had samples outside of
the upper reef assayed by Ultratrace, with Au, Pt and Pd determined by lead
collection fire assay with ICPMS (method code FA003) and Co, Cr, Cu, Ni and S
determined by Peroxide Fusion with (ICPAES), PLA also sent mineralised reef
samples to Genalysis Laboratory Services in Perth and submitted them for
nickel sulphide collection fire assay with ICPMS finish. As, Co, Cr, Cu, Ni
and S were analysed by method code DX/OES, a sodium peroxide fusion and
hydrochloric digest (nickel cruicibles) with ICPOES.
Quality assurance and quality control (QA-QC)
PLA and Future Metals submitted standards (Certified Reference Material) at a
rate of 1 in 25 samples, and blanks were inserted at a similar rate, Blanks
and standards were placed in the sample run to fall within the mineralised
material as it was analysed at the laboratory. Laboratory repeat analysis is
completed on 10% of the samples submitted for assay.
Estimation methodology
Geological and mineralisation constraints were generated on the basis of
logged chromitite reef lithology and 1.5g/t PGM(3E). The constraints were
subsequently used in geostatistics, variography, block model domain coding and
grade interpolation. Ordinary kriging was used for estimating Pd, Pt, Au, Cu,
Ni, and Co.
The constraints were coded to the drillhole database and samples were
composited in two ways. In the chromite reefs a single composite interval of
varying length was generated which encompassed the downhole thickness of the
entire interpreted interval. Outside the reefs, in the encompassing dunite
material, 3m downhole length composites were generated.
A parent block size of 50mE by 50mN by 20mRL was selected with sub-celling to
1mE by 1mN by 1mRL to account for the extreme thickness variability of the
chromite reefs. Comparison checks between the block models and wireframes
indicate an adequate volume resolution at the selected level of sub celling.
Variography was generated for the various A Block lodes to enable estimation
via ordinary kriging. Variography for the A Block lodes generally demonstrated
the best structure and were adopted for the other lodes. Hard boundaries were
used for the estimation throughout.
Input composite counts for the estimates were variable and set at a minimum of
between 4 and a maximum of 6 and this was dependent on domain sample numbers
and geometry. An selective mining unit ("SMU") dimension of 10m E by 10m N by
5m RL was selected for the estimation. Any blocks not estimated in the first
estimation pass were estimated in a second pass with an expanded search
neighbourhood and relaxed condition to allow the domains to be fully
estimated. Extrapolation of the drillhole composite data is commonly
approximately 200m to 300m beyond the edges of the drillhole data, however,
may be considered appropriate given the overall style and occurrence of
mineralisation in continuous chromite reef structures and the classification
of such extended grade estimates as Inferred.
Density has been assigned to the block model via a combination of ordinary
kriging and in the case of the dunites, direct assignment. Densities have been
reduced within the dunites in the top 25m to reflect the partially weathered
nature of this horizon. Prior to estimation, the reef intercepts without a
directly measured density value were assigned a value by regression against Cr
using the following formula:
§ density = 2.7 + (Cr% x 0.0508)
Mineral Resource classification and reporting
The MRE has been classified based on consideration of key criteria outlined in
Section 1, 2 and 3 of the JORC Code Table 1. The Mineral Resource has been
classified as either Indicated or Inferred. The classification is based on
the relative confidence in the mineralised domain continuity countered by
variable drill spacing. The classification of Indicated is only considered in
areas where the drill spacing is better than approximately 100m strike by 100m
down dip. The classification of Indicated applies to the chromite reefs only
based on the more complete degree of sampling and better knowledge of the
metallurgical parameters. Sampling in the dunite material was not completed
for every drillhole and the sample spacing is therefore more irregular and
incomplete. Metallurgical parameters are also so far unknown as testing is not
yet complete. The Resource classification applies to the estimated block grade
items of Pt, Pd, Au, Ni, Cr, Cu and Co only.
Reasonable Prospects for Eventual Economic Extraction ("RPEEE")
The MRE is considered to have RPEEE based on the following:
· Stable tenement status with no known impediments to land access
· Positive metallurgical characteristics indicated by test work to
date
· The deposit geometry and size lend amenability to the proposed
open pit mining methods.
Cut-off grades
A cutoff grade of 0.9g/t PdEq has been applied to the mineralised dunite
estimate. No differentiation between oxide and fresh rock has been made. No
cutoff grade has been applied to the chromitite reefs.
Palladium metal equivalents
Based on metallurgical test work completed on Panton samples, all quoted
elements included in the metal equivalent calculation (palladium, platinum,
gold, nickel, copper and cobalt) have a reasonable potential of being
ultimately recovered and sold.
Metal recoveries used in the palladium equivalent (PdEq) calculations are in
the midpoint of the range of recoveries for each element based on
metallurgical test work undertaken to date at Panton. It should be noted that
palladium and platinum grades reported in this announcement are lower than the
palladium and platinum grades of samples that were subject to metallurgical
test work (grades of other elements are similar).
Metal recoveries used in the palladium equivalent (PdEq) calculations are
shown below:
§ Reef: Palladium 80%, Platinum 80%, Gold 70%, Nickel 45%, Copper 67.5% and
Cobalt 60%
§ Dunite: Palladium 70%, Platinum 70%, Gold 70%, Nickel 45%, Copper 67.5%
and Cobalt 60%
Assumed metal prices used are also shown below:
§ Palladium US$1,700/oz, Platinum US$1,300/oz, Gold US$1,700/oz, Nickel
US$18,500/t, Copper US$9,000/t and Cobalt US$60,000/t
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(%)
Metallurgical methods and parameters
Initial sighter test work on both low-grade composites (~2.3g/t PGM3E) and
high-grade composites (~7.6g/t PGM3E), using a single stage flotation
rougher-scavenger test, yielded PGM3E recoveries of up to 68% and 71%
respectively (with higher Pd recovery relative to the Pt recovery) with
concentrate grades of up to 17g/t PGM3E for the low-grade and ~130g/t PGM3E
for the high-grade composite. No cleaning stages were completed during these
tests. Previous test work by Panoramic Resources Ltd on high-grade composites
achieved recoveries of more than 80% and concentrate grades over 200g/t PGM3E.
Recoveries for Ni ranged from 45 - 52% from a calculated head grade of 0.25%
Ni across both the reef and dunite mineralisation.
These initial tests were exploratory in nature and highlighted the differences
in mineralogy between the dunite and chromite reef. The Company expects to
achieve enhanced results as part of a more systematic programme as previously
set out above.
Further metallurgical test work is in progress on both high-grade chromite
composites and low-grade dunite composites to determine and optimise potential
flow sheet configurations.
This announcement has been approved for release by the Board of Future Metals
NL.
For further information, please contact:
Future Metals NL +61 8 9480 0414
Jardee Kininmonth info@future-metals.com.au (mailto:info@future-metals.com.au)
Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409 3494
James Harris / James Bellman
W H Ireland Limited (UK Broker) +44 (0) 207 220 1670
Harry Ansell/Katy Mitchell
White Noise Communications (Australian IR/PR) + 61 400 512 109
Fiona Marshall
Competent Person's Statement:
The information in this announcement that relates to Exploration Results is
based on, and fairly represents, information compiled by Mr Shane Hibbird, who
is a Member of the Australasian Institute of Mining and Metallurgy and the
Australian Institute of Geoscientists. Mr Hibbird is the Company's Exploration
Manager and 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 Hibbird consents
to the inclusion in this announcement of the matters based upon his
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 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.
The information in this announcement that relates to Metallurgical Results is
based on, and fairly represents, information compiled by Mr Brian Talbot, a
Competent Person who is a Member of the Australian Institute of Mining and
Metallurgy. Mr Talbot is a full-time employee of R-Tek Group Pty Ltd (R-Tek) a
specialist metallurgical consultancy. Mr Talbot 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 Talbot consents to the inclusion in this
announcement of the matters based upon his information in the form and context
in which it appears.
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.
Definitions and Glossary
AIM the AIM market of the London Stock Exchange plc
Archaean earliest geological period in the earth's history until 2,500 million years
before present
Assay chemical determination of metal content in a sample
ASX ASX Limited (ACN 008 624 691) or the financial market operated by ASX Limited
Au gold, one of the transition metals elements
Chromite an oxide mineral and principal ore of chromium
Co cobalt, one of the transition metals elements
Competent Person or CP International Resource Solutions Pty Ltd, the competent person responsible for
the information contained within this announcement
Cr chromium, one of the transition metals elements
Cu copper, one of the transition metals elements
Future Metals or Company Future Metals NL
g/t grammes per tonne
Gabbro a coarse grained mafic intrusive rock
ha hectare
Indicated that part of a Mineral Resource for which quantity, grade and physical
characteristics are estimated with sufficient confidence to allow the
application of modifying factors in sufficient detail to support mine planning
and evaluation of the economic viability of the deposit
Inferred that part of a Mineral Resource for which quantity and grade are estimated on
the basis of limited geological evidence and sampling
Ir irdium, one of the platinum group elements
JORC Code (2012) Australasian Code for Reporting of Mineral Resources and Ore Reserves 2012,
published by the Joint Ore Reserves Committee
kt kilo tonnes
Mafic igneous rocks that are low in silicon and high in iron and magnesium
MAGLAG a magnetic lag; a geochemistry method for analysing surface samples for
anomalous occurrences of elements (metals)
Mass Pull proportion of ore feed reporting to concentrate
Mineral Resource a concentration or occurrence of solid material of economic interest for which
there is a reasonable prospect of eventual economic extraction
Moz million ounces
MRE mineral resource estimate
mRL metres relative level; i.e. metres above sea level
Mt million tonnes
Ni nickel, one of the transition metals elements
Ore Reserve the economically mineable part of a Measured and/or Indicated Mineral
Resource. It includes diluting materials and allowances for losses, which may
occur when the material is mined or extracted
Os osmium, one of the platinum group elements
oz ounces
Paleoproterozoic a geological period of time 1,600 to 2,600 million years before
present
Panoramic Resources Panoramic Resources Limited (ASX: PAN)
Panton PGM-Ni Project Panton PGM-Nickel Project
Pd palladium, one of the platinum group elements
PdEq palladium Equivalent
PGE or PGM platinum Group Elements or Metals. The collective term for platinum,
palladium, rhodium, ruthenium, osmium and iridium
ppb parts per billion
ppm parts per million
Pt platinum, one of the platinum group elements
RC reverse circulation
RC Drilling an exploration drilling method that uses a dual walled drilling rod and
compressed air to obtain samples from the drill face
Rh rhodium, one of the platinum group elements
RL relative level or depth below a reference point either the surface or
sea-level
RPEEE Reasonable Prospects for Eventual Economic Extraction
Ru ruthenium, one of the platinum group elements
SMU selective mining unit
Syncline a concave flexure of a geological layer
Ultramafic relating to igneous rocks composed of mafic mineral rich in magnesium and iron
um a micron equivalent to one millionth of a metre
Appendix Three | JORC Code (2012) Edition Table 1
Section 1 Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling techniques § Nature and quality of sampling (e.g. cut channels, random chips, or § HQ3, NQ2 and BQ core was cut in half, one half retained in the core tray
specific specialised industry standard measurement tools appropriate to the for reference, the other sent to the laboratory for analysis. Reverse
minerals under investigation, such as down hole gamma sondes, or handheld XRF circulation ("RC") sampling by Platinum Australia Limited ("PLA") was by a
instruments, etc.). These examples should not be taken as limiting the broad combination of 4m composites produced by spearing 1m bulk samples and 1m split
meaning of sampling. samples taken from the rig mounted sample splitter.
§ Include reference to measures taken to ensure sample representivity and the § All sampling was either supervised by, or undertaken by, qualified
appropriate calibration of any measurement tools or systems used. geologists.
§ Aspects of the determination of mineralisation that are Material to the § To ensure representative sampling, for cored drill holes, when looking down
Public Report. In cases where 'industry standard' work has been done this hole, the left-hand side of the core was always sent for assay. At the
would be relatively simple (e.g. 'reverse circulation drilling was used to laboratory the entire half core sample was crushed, a 300g split was
obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for pulverised to provide material for fire assay, ICP-MS and/or XRF analysis.
fire assay'). In other cases more explanation may be required, such as where
there is coarse gold that has inherent sampling problems. Unusual commodities § Not all core or sections drilled with RC (in particular pre-collars) were
or mineralisation types (e.g. submarine nodules) may warrant disclosure of sampled. Intervals of rock that were not recognized as potentially mineralised
detailed information. from the geological logging were not always sampled.
Drilling techniques § Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air § Drill holes PS001 to PS058 completed by Pancontinental Mining Ltd
blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or ("Pancontinental") and Minsarco Resources NL ("Minsarco") were drilled by
standard tube, depth of diamond tails, face-sampling bit or other type, diamond core drilling, either HQ and NQ2. A number of drill holes have
whether core is oriented and if so, by what method, etc.). daughter drill holes that were drilled BQ in size.
§ Drill holes PS059 to PS379 completed by PLA were drilled using RC and
diamond coring, either PQ3, HQ3 or NQ3 in size. RC drilling employed a face
sampling bit. A number of drill holes had RC pre-collars drilled in advance of
a diamond core tail, but a number of drill holes were drilled completely with
RC.
§ All Future Metals drill holes were diamond core holes, either PQ3, HQ3 or
NQ3 in size. Generally, the top 50m (approximately) of the other drill holes
were drilled in PQ3 until competent rock was encountered. The drill hole was
then cased off and continued in HQ3 size core drilling. Where there was a need
to case off the HQ3 core drilling if the hole had difficulties, it was then
continued in NQ3 size core drilling.
§ PQ3 core diameter is 83.0mm, HQ3 core diameter is 61.1mm, NQ3 core diameter
is 45.0mm, BQ core diameter is 36.5m. RC drilling bits have a diameter of
15.9cm.
§ Future Metals' drill holes were orientated using a BLY TruCore UPIX
Orientation Tool.
§ PLA drill holes were orientated using a Reflex Orientation Tool.
§ Pancontinental drill holes were not orientated.
§ Triple tubes are utilised in the weathered horizon (less than 10m) and
standard tubes for the remainder of the drill hole.
Drill sample recovery § Method of recording and assessing core and chip sample recoveries and § Each core run is measured and checked against drillers' core blocks. Any
results assessed. core loss is noted. Core recoveries have been excellent with very little core
loss reported.
§ Measures taken to maximise sample recovery and ensure representative nature
of the samples. § All RC drill hole samples were weighed in the field as a method of
recording sample quality and recovery
§ Whether a relationship exists between sample recovery and grade and whether
sample bias may have occurred due to preferential loss/gain of fine/coarse § Drilling was planned to be as close to orthogonal to the mineralisation as
material. practicable to get representative samples of the mineralisation.
§ No relationship between recovery and grade has been identified.
Logging § Whether core and chip samples have been geologically and geotechnically § All drill core and RC samples have been logged onsite by geologists to a
logged to a level of detail to support appropriate Mineral Resource level of detail to support appropriate Mineral Resource estimation, mining
estimation, mining studies and metallurgical studies. studies and metallurgical studies.
§ Whether logging is qualitative or quantitative in nature. Core (or costean, § Logging is qualitative and records lithology, grain size, texture,
channel, etc.) photography. weathering, structure, alteration, veining and sulphides. Core is digitally
photographed.
§ The total length and percentage of the relevant intersections logged.
§ All holes are logged in full.
Sub-sampling techniques and sample preparation § If core, whether cut or sawn and whether quarter, half or all core taken. § All core that is sampled is cut using a diamond saw. HQ3, NQ2 and BQ core
is cut in half with one half submitted for assaying and the other retained for
§ If non-core, whether riffled, tube sampled, rotary split, etc. and whether reference. PQ3 core is cut in half, and then one half cut again into quarters.
sampled wet or dry. One quarter core is kept as reference, one quarter core is sent to the
laboratory for assay and the remaining half core is sent for metallurgical
§ For all sample types, the nature, quality and appropriateness of the sample test work.
preparation technique.
§ RC drilling by PLA was sampled from a rig mounted riffle splitter in 1m, or
§ Quality control procedures adopted for all sub-sampling stages to maximise half metre intervals. Virtually all of the RC samples were dry, a small
representivity of samples. percentage were damp or wet, this was recorded in the logs. All RC samples
were weighed on site to monitor sample recovery. Sections of drill holes
§ Measures taken to ensure that the sampling is representative of the in-situ logged as unmineralised were sampled as 4m composites using a PVC spear.
material collected, including for instance results for field
duplicate/second-half sampling. § Generally, core samples are 1m in length, with a minimum sample length of
25cm. Sample lengths are altered from the usual 1m due to geological contacts,
§ Whether sample sizes are appropriate to the grain size of the material particularly around the chromitite reefs.
being sampled.
§ RC drill holes had field duplicate samples taken at the rate of 1 in 25
samples. In the case of 1m samples, a second split was taken from the riffle
splitter or the bulk sample was passed through a 50/50 riffle splitter several
times to produce a sample of about 1kg in size. Composite samples were
duplicated by spearing the original bags twice. PLA took occasional ¼ core
samples and assayed them as a check against the original ½ core sample
assayed.
§ The sample size is considered appropriate for the material being sampled.
Quality of assay data and laboratory tests § The nature, quality and appropriateness of the assaying and laboratory § Future Metals sent samples for all resource and exploration drill holes to
procedures used and whether the technique is considered partial or total. Bureau Veritas in Perth for Au, Pt and Pd analysis by lead collection fire
assay (FA003) and As, Co, Cr, Cu, Ni and S by Mixed Acid Digest ICP-AES
§ For geophysical tools, spectrometers, handheld XRF instruments, etc, the (MA101).
parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc. § PLA had samples outside of the upper reef assayed by Ultratrace, with Au,
Pt and Pd determined by lead collection fire assay with ICPMS (method code
§ Nature of quality control procedures adopted (e.g. standards, blanks, FA003) and Co, Cr, Cu, Ni and S determined by Peroxide Fusion with (ICPAES).
duplicates, external laboratory checks) and whether acceptable levels of
accuracy (i.e. lack of bias) and precision have been established. § PLA also sent mineralised reef samples to Genalysis Laboratory Services in
Perth and submitted them for nickel sulphide collection fire assay with ICPMS
finish. As, Co, Cr, Cu, Ni and S were analysed by method code DX/OES, a sodium
peroxide fusion and hydrochloric digest (nickel crucibles) with ICPOES.PLA and
Future Metals submitted standards (Certified Reference Material) at a rate of
1 in 25 samples, and blanks were inserted at a similar rate. Blanks and
standards were placed in the sample run to fall within the mineralised
material as it was analysed at the laboratory.
§ All analytical methods employed are considered total.
§ No geophysical tools were used.
§ Laboratory repeat analysis was completed on 10% of the samples submitted
for assay.
Verification of sampling and assaying § The verification of significant intersections by either independent or § Primary data: drill hole data, geological logging, sample intervals etc.
alternative company personnel. are all recorded initially on hard copy in the field and then entered
digitally. Maps and cross sections are produced and the digital data verified.
§ The use of twinned holes.
§ Future Metals has established a Datashed SQL database and appropriate
§ Documentation of primary data, data entry procedures, data verification, protocols, to manage and store drilling data.
data storage (physical and electronic) protocols.
§ All significant intercepts are calculated by the Company's Exploration
§ Discuss any adjustment to assay data. Manager and checked by management.
§ PLA and Future Metals twinned several drill holes.
Location of data points § Accuracy and quality of surveys used to locate drill holes (collar and § All drill holes were located initially with handheld GPS but then
down-hole surveys), trenches, mine workings and other locations used in re-surveyed with a differential GPS system to get locational accuracy's to
Mineral Resource estimation. <0.1m.
§ Specification of the grid system used. § Down hole surveys are taken with a north seeking gyroscope at regular
intervals of 30m down hole in drill holes completed by Future Metals. All
§ Quality and adequacy of topographic control. drill holes completed by PLA were surveyed with a single shot Eastman down
hole camera with a number re-surveyed with a north seeking gyroscope as a
comparison and a check against interference of the down hole camera surveys
against the local magnetism within the host ultramafic rocks. PLA found that
in general the down hole camera surveys were acceptable, with the rare
individual surveys required to be rejected due to obvious spurious readings
from local bands of magnetite within the ultra-mafic host rocks. Survey
methods for the drill holes completed by Pancontinental was by down hole
camera, and the drill holes completed by Minsarco were surveyed with a
combination of down hole cameras and acid bottle methods.
§ Minsarco, Pancontinental and PLA drilling was initially located on a local
grid system which was re-installed by PLA using metal survey stakes by
Whelan's surveyors in Kununurra. The local grid has survived and is in good
condition in the field today. Location data was then converted to the
Australian Map Grid 1966, Zone 52. Future Metals has then converted this
location data to Map Grid of Australia 1994, Zone 52.
§ Future Metals drilling is located using Map Grid of Australia 1994, Zone
52.
§ The topographic control is considered better than <3m and is considered
adequate.
Data spacing and distribution § Data spacing for reporting of Exploration Results. § No new Exploration Results reported in this announcement.
§ Whether the data spacing and distribution is sufficient to establish the
degree of geological and grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and classifications applied.
§ Whether sample compositing has been applied.
Orientation of data in relation to geological structure § Whether the orientation of sampling achieves unbiased sampling of possible § Drilling is designed to be as close to orthogonal as practicable to the dip
structures and the extent to which this is known, considering the deposit and strike of the mineralised chromitite reefs within the Panton Intrusion.
type.
§ If the relationship between the drilling orientation and the orientation of
key mineralised structures is considered to have introduced a sampling bias,
this should be assessed and reported if material.
Sample security § The measures taken to ensure sample security. § Drillhole samples are delivered to the Company's transport contractor's
yard in Halls Creek directly by Company personnel. Samples are then delivered
to the laboratory by the Company's transport contractor.
Audits or reviews § The results of any audits or reviews of sampling techniques and data. § No independent audit has been conducted.
Section 2 Reporting of Exploration Results
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status § Type, reference name/number, location and ownership including agreements or § The Panton PGM-NI Project is located on three granted mining licenses
material issues with third parties such as joint ventures, partnerships, M80/103, M80/104 and M80/105 ('MLs'). The MLs are held 100% by Panton Sill Pty
overriding royalties, native title interests, historical sites, wilderness or Ltd which is a 100% owned subsidiary of Future Metals.
national park and environmental settings.
§ The MLs were granted on 17 March 1986 and are currently valid until 16
§ The security of the tenure held at the time of reporting along with any March 2028.
known impediments to obtaining a licence to operate in the area.
§ A 0.5% net smelter return royalty is payable to Elemental Royalties
Australia Pty Ltd in respect of any future production of chrome, cobalt,
copper, gold, iridium, palladium, platinum, nickel, rhodium and ruthenium.
§ A 2.0% net smelter return royalty is payable to Maverix Metals (Australia)
Pty Ltd on any PGMs produced from the MLs.
§ There are no impediments to working in the area.
Exploration done by other parties § Acknowledgment and appraisal of exploration by other parties. § The Panton deposit was discovered by the Geological Survey of Western
Australia from surface mapping conducted in the early 1960s.
§ Pickland Mather and Co. drilled the first hole to test the mafic-ultramafic
complex in 1970, followed by Minsarco which drilled 30 diamond holes between
1976 and 1987.
§ In 1989, Pancontinental drilled a further 32 drill holes and defined a
non-JORC compliant resource.
§ PLA acquired the project in 2000 and conducted the majority of the
drilling, comprising 166 holes for 34,410m, leading to the delineation of a
maiden JORC Mineral Resource Estimate.
§ Panoramic Resources Ltd ("Panoramic") subsequently purchased the Panton
PGM-Ni Project from PLA in May 2012 and conducted a wide range of
metallurgical test work programmes on the Panton mineralisation.
Geology § Deposit type, geological setting and style of mineralisation. § The Panton intrusive is a layered, differentiated mafic to ultramafic body
that has been intruded into the sediments of the Proterozoic Lamboo Complex in
the Kimberley Region of Western Australia. The Panton intrusion has
undergone several folding and faulting events that have resulted in a south
westerly plunging synclinal structure some 12km long and 3km wide.
§ PGM mineralisation is associated with several thin cumulate Chromitite
reefs and the surrounding dunite within the ultramafic sequence. In all
there are three chromite horizons, the Upper group Chromitite (situated within
the upper gabbroic sequence), the Middle group Chromitite (situated in the
upper portion of the ultramafic cumulate sequence) and the Lower group
Chromitite (situated toward the base of the ultramafic cumulate sequence). The
top reef mineralised zone has been mapped over approximately 12km.
Data aggregation methods § In reporting Exploration Results, weighting averaging techniques, maximum § No exploration results reported in this announcement.
and/or minimum grade truncations (e.g. cutting of high grades) and cut-off
grades are usually Material and should be stated. § No new Exploration Results are reported in this announcement.
§ Where aggregate intercepts incorporate short lengths of high-grade results § Where palladium equivalents (PdEq) are reported, these values are based on
and longer lengths of low-grade results, the procedure used for such the following assumptions:
aggregation should be stated and some typical examples of such aggregations
should be shown in detail. § Prices in USD
$/(t or oz)
§ The assumptions used for any reporting of metal equivalent values should be Cu % 9,000
clearly stated. Pt ppm 1,300
Au ppm 1,700
Pd ppm 1,700
Ni % 18,500
Co ppm 60,000
§ Metallurgical recoveries are based on test work undertaken by Platinum
Australia Ltd, Panoramic Resources Ltd and Future Metals NL and are as
follows:
Recovery
Reef Dunite
% %
Cu % 67.5% 67.5%
Pt ppm 80.0% 70.0%
Au ppm 70.0% 70.0%
Pd ppm 80.0% 70.0%
Ni pct 45.0% 45.0%
Co ppm 60.0% 60.0%
Relationship between mineralisation widths and intercept lengths § These relationships are particularly important in the reporting of § No new Exploration Results are reported in this announcement.
Exploration Results.
§ If the geometry of the mineralisation with respect to the drill hole angle
is known, its nature should be reported.
§ If it is not known and only the down hole lengths are reported, there
should be a clear statement to this effect (eg 'down hole length, true width
not known').
Diagrams § Appropriate maps and sections (with scales) and tabulations of intercepts § Appropriate map sections are included in the body of this announcement.
should be included for any significant discovery being reported These should
include, but not be limited to a plan view of drill hole collar locations and
appropriate sectional views.
Balanced reporting § Where comprehensive reporting of all Exploration Results is not § No new Exploration Results reported in this announcement.
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration
Results.
Other substantive exploration data § Other exploration data, if meaningful and material, should be reported § All material exploration data is included in this announcement including
including (but not limited to): geological observations; geophysical survey geology and mineralisation, drilling techniques, sampling and analysis
results; geochemical survey results; bulk samples - size and method of methodology, QC-QC, Mineral Resource estimation methodology, Mineral Resource
treatment; metallurgical test results; bulk density, groundwater, geotechnical classification and reporting, cut-off grades, metallurgical parameters.
and rock characteristics; potential deleterious or contaminating substances.
Further work § The nature and scale of planned further work (eg tests for lateral § Further metallurgical test work is being undertaken.
extensions or depth extensions or large-scale step-out drilling).
§ Further infill drilling will be undertaken to improve confidence in the
§ Diagrams clearly highlighting the areas of possible extensions, including MRE.
the main geological interpretations and future drilling areas, provided this
information is not commercially sensitive. § There are numerous areas along the strike of the MRE area where geological
interpretation suggests a continuation of mineralisation however drilling is
limited. These areas will be followed up to confirm continuity of the
mineralisation near surface.
§ Further exploration work and drilling is being planned to test the most
prospective areas along strike, at depth, and the 'Northern Anomaly' zone.
§ Metallurgical recoveries are based on test work undertaken by Platinum
Australia Ltd, Panoramic Resources Ltd and Future Metals NL and are as
follows:
Recovery
Reef Dunite
% %
Cu % 67.5% 67.5%
Pt ppm 80.0% 70.0%
Au ppm 70.0% 70.0%
Pd ppm 80.0% 70.0%
Ni pct 45.0% 45.0%
Co ppm 60.0% 60.0%
Relationship between mineralisation widths and intercept lengths
§ These relationships are particularly important in the reporting of
Exploration Results.
§ If the geometry of the mineralisation with respect to the drill hole angle
is known, its nature should be reported.
§ If it is not known and only the down hole lengths are reported, there
should be a clear statement to this effect (eg 'down hole length, true width
not known').
§ No new Exploration Results are reported in this announcement.
Diagrams
§ Appropriate maps and sections (with scales) and tabulations of intercepts
should be included for any significant discovery being reported These should
include, but not be limited to a plan view of drill hole collar locations and
appropriate sectional views.
§ Appropriate map sections are included in the body of this announcement.
Balanced reporting
§ Where comprehensive reporting of all Exploration Results is not
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration
Results.
§ No new Exploration Results reported in this announcement.
Other substantive exploration data
§ Other exploration data, if meaningful and material, should be reported
including (but not limited to): geological observations; geophysical survey
results; geochemical survey results; bulk samples - size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.
§ All material exploration data is included in this announcement including
geology and mineralisation, drilling techniques, sampling and analysis
methodology, QC-QC, Mineral Resource estimation methodology, Mineral Resource
classification and reporting, cut-off grades, metallurgical parameters.
Further work
§ The nature and scale of planned further work (eg tests for lateral
extensions or depth extensions or large-scale step-out drilling).
§ Diagrams clearly highlighting the areas of possible extensions, including
the main geological interpretations and future drilling areas, provided this
information is not commercially sensitive.
§ Further metallurgical test work is being undertaken.
§ Further infill drilling will be undertaken to improve confidence in the
MRE.
§ There are numerous areas along the strike of the MRE area where geological
interpretation suggests a continuation of mineralisation however drilling is
limited. These areas will be followed up to confirm continuity of the
mineralisation near surface.
§ Further exploration work and drilling is being planned to test the most
prospective areas along strike, at depth, and the 'Northern Anomaly' zone.
Section 3 Estimation and Reporting of Mineral Resources
Criteria JORC Code explanation Commentary
Database integrity § Measures taken to ensure that data has not been corrupted by, for example, § All data is stored in a Datashed SQL database. Future Metals employs a
transcription or keying errors, between its initial collection and its use for Database Manager who is responsible for the integrity and efficient use of the
Mineral Resource estimation purposes. system. Only the Database Manager has permission to modify the data. It has
been thoroughly checked for consistency. For example, sampling and geological
§ Data validation procedures used. logging data is initially collected in the field on hard copy logs then
entered digitally by the Geologist into Microsoft Excel. The data is checked
by plotting sections and maps in MapInfo Discover GIS software and once
verified by the Geologist it is uploaded digitally into Datashed by the
Database Manager. The software utilises lookup tables, fixed formatting and
validation routines to ensure data integrity prior to upload to the central
database. Sampling data is sent to, and received from, the assay laboratory in
digital format. Drill hole collars are picked up by differential GPS (DGPS)
and delivered to the database in digital format. Down hole surveys are
delivered to the database in digital format.
§ DataShed software has validation procedures that include constraints,
library tables, triggers and stored procedures. Data that does not pass
validation tests must be corrected before upload. Geological logging data is
checked visually in three dimensions against the existing data and geological
interpretation. Assay data must pass laboratory QAQC before database upload.
Sample grades are checked visually in three dimensions against the logged
geology and geological interpretation. Drill hole collar pickups are checked
against planned and/or actual collar locations. A hierarchical system is used
to identify the most reliable down hole survey data. Drill hole traces are
checked visually in three dimensions. The Exploration Manager is responsible
for interpreting the down hole surveys to produce accurate drill hole traces.
§ The historical PLA data was uploaded from a Microsoft Access relational
database into the current version of Maxwell Geoservices Datashed. Most of the
sample assay data was re-loaded from the original assay files supplied form
the various laboratories to ensure OAQC protocols were honoured.
Site visits § Comment on any site visits undertaken by the Competent Person and the § The CP has not yet conducted a site visit and has relied on information
outcome of those visits. provided by Future Metals' technical personnel, some of whom have been
involved with the project since 2001. A site visit has not been deemed
§ If no site visits have been undertaken indicate why this is the case. necessary at this point as the geological interpretation of the mineralised
system is not substantially different to that of the previous MRE. A site
visit is nevertheless considered necessary for any future updates.
Geological interpretation § Confidence in (or conversely, the uncertainty of) the geological § The confidence in the interpretation is high as a result of a predominance
interpretation of the mineral deposit. of core logging and underground mapping information from surface sampling,
drilling and exploration mining activity.
§ Nature of the data used and of any assumptions made.
§ Wireframe models of the mineralised volumes have been made by independent
§ The effect, if any, of alternative interpretations on Mineral Resource consultants RTEK Group and provided to the CP.
estimation.
§ The current geological interpretation is based on the logged and assayed
§ The use of geology in guiding and controlling Mineral Resource estimation. chromite content within the host dunite sequence. Significant sulphide
percentage was also used in the criteria to identify reef mineralisation
§ The factors affecting continuity both of grade and geology. defined by a PdEq cut off of 1.5g/t.
§ Alternative interpretations have not been considered for the purpose of
Mineral Resource Estimation as the current interpretation is thought to
represent the best fit based on the current level of data.
§ The mineralised dunite is interpreted to be a south plunging synclinal
feature, this geological interpretation is based on geological logging of
drill hole data. A series of four major shears are interpreted to cut-off or
offset the mineralisation and separate the mineralisation into a series of
discrete blocks.
§ In the CP's opinion there is sufficient information available from drilling
to build a plausible geological interpretation that is of appropriate
confidence for the classification of the Mineral Resource Estimate.
Dimensions § The extent and variability of the Mineral Resource expressed as length § The Mineral Resource Estimate area has overall dimensions of approximately
(along strike or otherwise), plan width, and depth below surface to the upper 5,100m of strike length and has been intercepted in drillholes to 800m depth
and lower limits of the Mineral Resource below surface.
Estimation and modelling techniques § The nature and appropriateness of the estimation technique(s) applied and § Geological and mineralisation constraints were generated on the above basis
key assumptions, including treatment of extreme grade values, domaining, by RTEK Group. The constraints were subsequently used in geostatistics,
interpolation parameters and maximum distance of extrapolation from data variography, block model domain coding and grade interpolation. Ordinary
points. If a computer assisted estimation method was chosen include a kriging was used for estimating Pd, Pt, Au, Cu, Ni, Cr and Co.
description of computer software and parameters used.
§ Based on the OK estimates for the above elements, a series of regression
formulae have been used to assign grades for the rare PGE's Os, Ir, Rh and Ru.
The regression formulae themselves have been historically developed based on
work completed by PLA prior to 2003 and have not been checked by the CP. The
assigned grade values for the above rare PGE's are an indication of the
expected grades and should not be used in any economic evaluation.
§ The constraints were coded to the drillhole database and samples were
composited in two ways. In the chromite reefs a single composite interval of
varying length was generated which encompassed the downhole thickness of the
entire interpreted interval. Outside the reefs, in the encompassing dunite
material, 3m downhole length composites were generated.
§ A parent block size of 50mE by 50mN by 20mRL was selected with sub-celling
to 1mE by 1mN by 1mRL to account for the extreme thickness variability of the
chromite reefs. Comparison checks between the block models and wireframes
indicate an adequate volume resolution at the selected level of sub celling.
§ Variography was generated for the various A Block lodes to enable
estimation via ordinary kriging. Variography for the A Block lodes generally
demonstrated the best structure and were adopted for the other lodes. Hard
boundaries were used for the estimation throughout.
§ Input composite counts for the estimates were variable and set at a minimum
of between 4 and a maximum of 6 and this was dependent on domain sample
numbers and geometry. Any blocks not estimated in the first estimation pass
were estimated in a second pass with an expanded search neighbourhood and
relaxed condition to allow the domains to be fully estimated. Extrapolation of
the drillhole composite data is commonly approximately 200m to 300m beyond the
edges of the drillhole data, however, may be considered appropriate given the
overall style and occurrence of mineralisation in continuous chromite reef
structures and the classification of such extended grade estimates as
Inferred.
§ The availability of check estimates, previous estimates and/or mine § Previous Resource estimates are >20 years old and were re-stated in 2015
production records and whether the Mineral Resource estimate takes appropriate under JORC 2012. Current estimated grades and tonnages are approximately in
account of such data. line with the historical resource estimates for the chromite reefs only.
Resource estimates for the mineralised dunite were not estimated at this time.
§ The assumptions made regarding recovery of by-products. § No by-products are currently assumed.
§ Estimation of deleterious elements or other non-grade variables of economic § No other elements have been assayed.
significance (e.g. sulphur for acid mine drainage characterisation).
§ In the case of block model interpolation, the block size in relation to the § The parent block estimation was selected to be 10mN x10mE x 10mRL
average sample spacing and the search employed. throughout, with sub-celling for domain volume resolution. The parent block
size was chosen based on mineralised bodies dimension and orientation,
estimation methodology and relates to a highly variable drill section spacing
and likely method of a mixture of future underground production. The search
ellipse was oriented in line with the interpreted mineralised bodies. Search
ellipse dimensions were chosen to encompass adjacent drillholes on sections
and adjacent lines of drilling along strike and designed to fully estimate the
mineralised domains. Overall, the estimation parent block dimension may be
considered small, however coupled with the low numbers of input samples, it is
considered unlikely that this will have resulted in significant distortion of
the grade tonnage curve.
§ Any assumptions behind modelling of selective mining units. § Selective mining assumptions of a 10m by 10m by 5m RL SMU for open pit
mining were made. For underground mining, it has been assumed that full seam
width mining will be undertaken
§ Any assumptions about correlation between variables. § The following variables are strongly correlated within the chromite reefs
only- Pd, Pt and Cr.
§ Description of how the geological interpretation was used to control the § The geological model domained the mineralised lode material and were used
Resource estimates. as hard boundaries for the estimation.
§ Discussion of basis for using or not using grade cutting or capping. § To limit the effects of extreme grades the following high-grade limits were
applied to the composited grade values prior to the OK estimations; in the
case of the reefs gold was cut to 1.5g/t; copper 0.3%. For the dunite domains,
Au was cut to 1ppm, Co was cut to 0.2%, Cr was cut to 5%, Cu was cut to 0.2%,
Pd was cut to 2g/t and Pd to 1.5g/t.
§ The process of validation, the checking process used, the comparison of § The block model estimates were validated by visual comparison of block
model data to drillhole data, and use of reconciliation data if available. grades to drillhole composites, comparison of composite and block model
statistics and swath plots of composite versus whole block model grades.
Moisture § Whether the tonnages are estimated on a dry basis or with natural moisture, § The tonnages are estimated on a dry basis.
and the method of determination of the moisture content.
Cutoff parameters § The basis of the adopted cutoff grade(s) or quality parameters applied § A 0.9g/t Pd Eq cutoff grade was used to report the Mineral Resources in the
Dunite domains. No cutoff was applied to the reporting of the chromite reefs.
This cutoff grade is estimated to be the minimum grade required for economic
extraction.
Mining factors or assumptions § Assumptions made regarding possible mining methods, minimum mining § A mixture of open pit and underground mining is assumed however no rigorous
dimensions and internal (or, if applicable, external) mining dilution. It is application has been made of minimum mining width, internal or external
always necessary as part of the process of determining reasonable prospects dilution.
for eventual economic extraction to consider potential mining methods, but the
assumptions made regarding mining methods and parameters when estimating
Mineral Resources may not always be rigorous. Where this is the case, this
should be reported with an explanation of the basis of the mining assumptions
made.
Metallurgical factors or assumptions § The basis for assumptions or predictions regarding metallurgical § Metallurgical testwork is considered to be at an early stage. Bench scale
amenability. It is always necessary as part of the process of determining flotation testwork has demonstrated the following:
reasonable prospects for eventual economic extraction to consider potential
metallurgical methods, but the assumptions regarding metallurgical treatment o Initial sighter test work on both low-grade composites (~2.3g/t PGM3E) and
processes and parameters made when reporting Mineral Resources may not always high-grade composites (~7.6g/t PGM3E), using a single stage rougher-scavenger
be rigorous. Where this is the case, this should be reported with an test, yielded PGM3E recoveries of up to 68% and 71% respectively (with higher
explanation of the basis of the metallurgical assumptions made. Pd recovery relative to the Pt recovery) with concentrate grades of up to
17g/t PGM3E for the low-grade and ~130g/t PGM3E for the high-grade composite.
No cleaning stages were completed during these tests. Previous test work by
Panoramic Resources on high-grade composites achieved recoveries of more than
80% and concentrate grades over 200g/t PGM3E. Recoveries for Ni ranged from 45
- 52% from a calculated head grade of 0.25% Ni across both the reef and dunite
mineralisation.
Environmental factors or assumptions § Assumptions made regarding possible waste and process residue disposal § No consideration has yet been given to environmental matters such as waste
options. It is always necessary as part of the process of determining and process residue disposal options or the environmental impacts of a mining
reasonable prospects for eventual economic extraction to consider the and processing operation. The Resource estimate assumes that the Company will
potential environmental impacts of the mining and processing operation. While be able to obtain all required environmental permitting in a manner that does
at this stage the determination of potential environmental impacts, not adversely affect the Resource estimate.
particularly for a greenfields project, may not always be well advanced, the
status of early consideration of these potential environmental impacts should
be reported. Where these aspects have not been considered this should be
reported with an explanation of the environmental assumptions made
Bulk density § Whether assumed or determined. If assumed, the basis for the assumptions. § Direct measurements of Dry Bulk Densities have been taken for all domains.
If determined, the method used, whether wet or dry, the frequency of the Typically, a 10cm billet has been determined on a representative basis in the
measurements, the nature, size and representativeness of the samples. mineralised portion. A total of 689 measurements were available for
estimation.
§ The bulk density for bulk material must have been measured by methods that
adequately account for void spaces (vugs, porosity, etc.), moisture and § Density measurements were undertaken using a core cylinder measurement
differences between rock and alteration zones within the deposit, technique, with 10% being determined by water immersion methods. Given the
shallow weathering profile of the project area these density measurements on
§ Discuss assumptions for bulk density estimates used in the evaluation competent core are considered representative of the mineralised material.
process of the different materials.
§ Densities have been estimated into blocks within the reef domains using
identical parameters as the Pd OK estimates and this is appropriate given the
high degree of correlation between the two variables.
§ In the case of the mineralised dunite, where there is no evidence for a
strong correlation between densities and degree of mineralisation, densities
have been applied as a single value of 2.9 t/m(3) and this has been reduced to
2.5 t/m(3) for the upper weathered 25m below the surface.
Classification § The basis for the classification of the Mineral Resources into varying § The Mineral Resource has been classified as Indicated and Inferred. The
confidence categories classification is based on the relative confidence in the mineralised domain
continuity countered by variable drill spacing. The classification of
§ Whether appropriate account has been taken of all relevant factors (i.e. Indicated is only considered in areas where the drill spacing is better than
relative confidence in tonnage/grade estimations, reliability of input data, approximately 100m strike by 100m down dip. The classification of Indicated
confidence in continuity of geology and metal values, quality, quantity and applies to the chromite reefs only based on the more complete degree of
distribution of the data). sampling and better knowledge of the metallurgical parameters. Sampling in the
dunite material was not completed for every drillhole and the sample spacing
§ Whether the result appropriately reflects the Competent Person's view of is therefore more irregular and incomplete. Metallurgical parameters are also
the deposit. so far unknown as testing is not yet complete.
§ Additionally, the Resource classification applies to the estimated block
grade items of Pt, Pd, Au, Ni, Cr, Cu and Co only. The regressed grades for
rare PGE's Os, Ir, Rh and Ru are only an indication of the grade as they are
based on relatively few assayed samples in comparison to the block grade items
estimated via OK. The regressed grades for rare PGE's should not be used in
definitive economic analysis.
§ The validation of the block model shows moderately good correlation of the
input data to the estimated grades.
§ The Mineral Resource Estimate appropriately reflects the view of the
Competent Persons.
Audits or reviews § The results of any audits or reviews of Mineral Resource estimates. § No external audits or reviews have been undertaken
§ Where appropriate a statement of the relative accuracy and confidence level § The relative accuracy of the Mineral Resource Estimate is reflected in the
in the Mineral Resource estimate using an approach or procedure deemed reporting of the Mineral Resource as per the guidelines of the 2012 JORC Code.
appropriate by the Competent Person. For example, the application of
statistical or geostatistical procedures to quantify the relative accuracy of § The statement relates to global estimates of tonnes and grade.
the Resource within stated confidence limits, or, if such an approach is not
deemed appropriate, a qualitative discussion of the factors that could affect § Mining activity has not taken place apart from minor underground activity
the relative accuracy and confidence of the estimate by PLA which was intended to bulk sample the reefs at depth only
§ The statement should specify whether it relates to global or local
estimates, and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation. Documentation should include
assumptions made and the procedures used.
§ These statements of relative accuracy and confidence of the estimate should
be compared with production data, where available
1 'Kell hydrometallurgical extraction of precious and base metals from
flotation concentrates - Piloting, engineering, and implementation advances.'
K.S. Liddell, M.D. Adams, L.A. Smith, and B. Muller
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