REG - Future Metals NL - Panton Resource Upgrade
26/10/2023 07:15
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RNS Number : 3846R Future Metals NL 26 October 2023
26 October 2023
Future Metals NL
Panton Resource Upgrade Delivers Opportunity for High-Grade, Long-Life
Operation
Reef MRE of 10.8Mt @ 7.0g/t PdEq(2) for 2.4Moz PdEq(2)
Total MRE of 92.9Mt @ 2.0g/t PdEq(2) for 6.0Moz PdEq(2)
Highlights
§ Upgraded independent JORC 2012 Mineral Resource Estimate ("MRE") confirms
Panton's status as the highest grade in Australia and one of the highest grade
undeveloped PGM projects globally
§ High grade Reef mineralisation remains open at depth, with drilling
indicating that mineralisation is thickening and grade is increasing
§ Material increase in MRE confidence with the Indicated category comprising
44% of the total MRE from 6% previously
Deposit Tonnage Grade Contained PdEq(2)
(Mt) (PdEq(2) g/t) (Moz)
Reef 10.8 7.0 2.4
High-Grade Dunite((1.4g/t PdEq cut-off)) 26.4 1.8 1.5
Reef + High-Grade Dunite 37.2 3.3 3.9
Bulk Dunite ((0.9g/t PdEq cut-off)) 55.7 1.2 2.1
Total 92.9 2.0 6.0
§ PdEq calculation currently excludes potentially value accretive copper,
cobalt, rhodium and iridium credits which will be assessed for inclusion in
follow up feasibility work
§ Conventional process flowsheet now well established for producing
high-grade Ni-PGM and chromite (Cr(2)O(3)) concentrates from the Reef and
High-Grade Dunite
§ The Panton Scoping Study, to be finalised this quarter, will assess
development of a long life operation extracting Reef + High Grade Dunite
mineralisation
§ Further significant scale potential from Bulk Dunite MRE and further
discoveries within the Company's recently expanded exploration position(3)
(1) Platinum-Group-Metals 3E refers to platinum, palladium and gold
( 2) PdEq (Palladium Equivalent). Refer to page 13 for calculation details
(3) See announcement dated 5 October 2023 regarding Future Metals option over
Osprey Minerals Pty Ltd
Future Metals NL ("Future Metals" or the "Company", ASX | AIM: FME) is pleased
to announce it has an updated independent JORC Code (2012) MRE for its 100%
owned Panton PGM-Ni-Cr Project. The upgraded MRE further establishes the
Panton project as the highest grade PGM project in Australia and one of the
highest grade undeveloped PGM projects globally. The MRE also includes an
estimate for the Panton deposit's chromite content for the first time,
positioning it as one of the only chromite projects in Australia, and one of
the few in a top tier jurisdiction.
Figure 1: Australian PGM Project Comparison. See Appendix 3 for source
information.
Mr Jardee Kininmonth, Managing Director of Future Metals, commented:
"Following recent drilling and interpretation, an improved geological
understanding of the Panton PGM deposit has now been incorporated into an
upgraded independent MRE. This new MRE clearly highlights the impressive grade
of the Reef at Panton. In addition, the High Grade Dunite at the contact of
the reef has also been separately modelled for the purposes of more effective
underground mine design. Both the Reef and dunite remain open at depth where
drilling demonstrates a thickening in mineralisation and increasing grades,
providing significant growth potential.
The upgraded MRE also includes the chromite grade for the first time following
successful test work demonstrating the ability to produce a saleable chromite
concentrate subsequent to PGM flotation. This high-grade chromite
mineralisation greatly enhances the overall value of Panton, with chromite
being a highly sought after product for use in the steel industry and its
global supply highly concentrated in Africa. Structural supply constraints
have caused a ~60% price increase over the past 12 months, taking chromite
concentrate prices (South Africa, 40-42% CIF China) to ~US$290/t.
We look forward to finalising the Scoping Study and demonstrating our
expectation that Panton can support a low capital, long life and profitable
operation."
Figure 2: Breakdown of palladium equivalent and basket price per PGM(3E)
ounce. Assumptions used are those set out under Palladium Equivalent
calculations below.
Panton Mineral Resource Estimate Overview
The MRE at Panton has been substantially upgraded with improvements in grade,
JORC classification and the inclusion of a chromite estimate. The total MRE at
Panton is now 92.9Mt @ 1.5g/t PGM(3E)(1), 0.20% Ni, 3.1% Cr(2)O(3) (2.0g/t
PdEq(2)) for contained metal of 4.5Moz PGM(3E)(1), 185kt Ni, 2.8Mt Cr(2)O(3),
(6.0Moz PdEq(2)). The MRE has been reported across three separate units; the
Reef, the High-Grade Dunite and the Bulk Dunite.
Table One | Panton Total Mineral Resource Estimate
Mass PGM(3E)(1) Ni Cr(2)O(3) PdEq(2)
(Mt) (g/t) (%) (%) (g/t)
92.9 Grade 1.5 0.20 3.1 2.0
(Moz) (kt) (Mt) (Moz)
Contained Metal 4.5 185 2.8 6.0
The Reef component has an MRE of 10.8Mt @ 5.6g/t PGM(3E)(1), 0.27% Ni, 14.6%
Cr(2)O(3) (7.0g/t PdEq(2)) for contained metal of 2.0Moz PGM(3E)(1), 29kt Ni,
1.6Mt Cr(2)O(3) (2.4Moz PdEq(2)).
Table Two | Panton Mineral Resource Estimate - High Grade Reef
Mass PGM(3E)(1) Ni Cr(2)O(3) PdEq(2)
(Mt) (g/t) (%) (%) (g/t)
10.8 Grade 5.6 0.27 14.6 7.0
(Moz) (kt) (Mt) (Moz)
Contained Metal 2.0 29 1.6 2.4
The High-Grade Dunite component has an MRE of 26.4Mt @ 1.3g/t PGM(3E)(1),
0.21% Ni (1.8g/t PdEq(2)) for contained metal of 1.1Moz PGM(3E)(1), 54kt Ni
(1.5Moz PdEq(2)). The High-Grade Dunite is the mineralisation which sits
parallel to the reef mineralisation at the footwall and hangingwall contacts.
Table Three | Panton Mineral Resource Estimate - High Grade Dunite (1.4g/t
PdEq cut-off)
Mass PGM(3E)(1) Ni PdEq(2)
(Mt) (g/t) (%) (g/t)
26.4 Grade 1.3 0.21 1.8
(Moz) (kt) (Moz)
Contained Metal 1.1 54 1.5
The combined Reef and High-Grade Dunite mineralisation has an MRE of 37.2Mt @
2.6g/t PGM(3E)(1), 0.22% Ni, 6.2% Cr(2)O(3) (3.3g/t PdEq(2)) for contained
metal of 3.1Moz PGM(3E)(1), 83kt Ni, 2.2Mt Cr(2)O(3) (3.9Moz PdEq(2)).
Table Four | Panton Mineral Resource Estimate - Reef & High-Grade Dunite
Mass PGM(3E)(1) Ni Cr(2)O(3) PdEq(2)
(Mt) (g/t) (%) (%) (g/t)
37.2 Grade 2.6 0.22 6.2 3.3
(Moz) (kt) (Mt) (Moz)
Contained Metal 3.1 83 2.2 3.9
The Bulk Dunite has been reported at a 0.9g/t PdEq cut-off for an MRE of
55.7Mt @ 0.8g/t PGM(3E)(1), 0.18% Ni (1.2g/t PdEq(2)) for contained metal of
1.4Moz PGM(3E)(1), 102kt Ni (2.1Moz PdEq(2)). A detailed table for the Panton
MRE is provided in Appendix One.
The primary change between the previously reported MRE (announced 21 June
2022) and the upgraded MRE set out in this announcement is enhanced geological
modelling of the Reef mineralisation and the surrounding dunite into separate
geological units. This detailed modelling was undertaken following
breakthroughs in the Company's metallurgical test work programmes as announced
on 13 February 2023. Ore sorting has been demonstrated to be highly effective
at separating the Reef from surrounding dunite mineralisation and waste
material, and flotation test work has demonstrated the performance
improvements of feeding separated material to the concentrator. The new MRE
enables the Company to more accurately model the volume and grade of different
mineralisation types which can be mined and milled as part of the forthcoming
Scoping Study, which is focussed on the Reef and High Grade Dunite
mineralisation.
Another key change to the MRE is the inclusion of a chromite (Cr(2)O(3))
estimate. This follows numerous successful metallurgical test work programmes
demonstrating that a saleable chromite concentrate can be produced from the
tails of the PGM flotation where the Ni-PGM concentrate is produced. Figure 2
shows the composition of Panton's PdEq(2) grade and its basket price where
chromite provides a material contribution.
Figure 3: Isometric view of high-grade Panton with drill traces and resource
blocks coloured by Resource classification.
The proportion of mineralisation classified as Indicated has also increased,
now constituting approximately 44% of the total MRE (and 41% of the Reef),
compared to 6% in the previous MRE. This follows the inclusion of a number of
recently completed drill holes which were not previously included, and
improved metallurgical understanding and performance of the dunite
mineralisation.
The Reef has been geologically constrained based on logging, PGM(3E) and Cr
grades. The Bulk Dunite is reported at a cut-off grade of 0.9g/t PdEq(2) and
estimated down to a vertical depth of just ~150m (300mRL). The High-Grade
Dunite has been reported below this depth, at a cut-off grade of 1.4g/t
PdEq(2). This mineralisation occurs along the hangingwall and footwall contact
with the reefs and has been reported down to the same depth as the Reef.
The new MRE was prepared independently by International Resource Solutions Pty
Ltd and reported in accordance with the JORC Code (2012).
Exploration & Resource Upside
Panton's Reef and High-Grade Dunite are open at depth and shallowing as they
plunge to the south-west. Drill hole PS414 (shown in Figure 4) is on the
largest step-out and demonstrates increasing grade and a potential thickening
in the deposit as it flattens in its plunge. There is considerable potential
to grow the high-grade Reef and High-Grade Dunite MRE through further drilling
targeting down plunge extensions.
Figure 4: Isometric view of high-grade PGM reef looking north with drill
traces and resource blocks coloured by PdEq grade
There is also potential to discover localised zones of economic mineralisation
(such as more reefs) near the existing Reef modelled in the MRE. Drill hole
PS291 (shown in Figure 4) demonstrates sulphide-rich mineralisation with
significantly less chromite than the majority of the reef intersections which
inform the MRE. This style of mineralisation is analogous to the Bushveld
system in South Africa, where the sulphide-rich Merensky reef sits higher up
in the stratigraphy than the chromite-rich UG2 reef.
The majority of the drill holes included in the MRE have only been sampled
close to the upper and lower reef contacts. There was limited sampling of
mineralisation above or below the reefs by prior owners of Panton, with
geological logging providing multiple indications of chromite stringer reefs
which have not been sampled (a potential marker for PGM(3E) mineralisation).
The Company is currently completing a review of this historical logging to
target previously drilled holes of interest for follow up re-logging and
portable X-Ray Fluorescence ("pXRF") analysis, followed by sampling and
assaying.
There is a significant amount of mineralised dunite within Panton which has
not been included in the MRE. The area marked out as the Bulk Dunite Extension
Zone on Figure 6 has been drilled on wide spaced lines across ~250m, along a
NE-SW strike of ~2.5km with all drill holes returning highly anomalous
PGM(3E), Ni and Cu mineralisation. Infill drilling and establishment of a
metallurgical solution for this mineralisation could enable the Company to
significantly grow the near surface Bulk Dunite MRE.
The Company has not included copper or cobalt in its PdEq calculations however
continued optimisation of metallurgical performance may warrant their
inclusion in subsequent MRE updates. Similarly, the Company's MRE does not
include rhodium, iridium or osmium due to paucity of assay data however
flotation test work has demonstrated the recovery of these valuable metals.
The Company will examine whether resampling of existing drill core for these
elements is warranted as it progresses the Project.
Figure 5: Panton PdEq(2) Grade-Tonnage Curve
Figure 6: Plan View of Panton including MRE area
Figure 7: Cross Section A Block Figure 8: Cross Section C Block
Summary of Mineral 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 approximately 9km long, 3km wide and 1.7km
thick, with a 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 comprised of leucogabbro, gabbro,
ferrogabbro, gabbronorites, norites and pyroxenites with an overlying
anorthositic unit.
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 up to 10m but is largely confined to less than 1m.
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 has been divided into multiple domains including
the upper and lower reefs and their associated footwall and hangingwall dunite
mineralisation, as well as a middle dunite unit which sits between the reefs.
Drilling techniques and hole spacing
The drilling database for the Panton deposit includes data collected by
reverse circulation ("RC") and diamond core drilling ("DD"). The drilling
database has been compiled from drill holes completed since 1970 to present
with a total of 79,872.5m of drilling completed in 450 drill holes.
Pancontinental Mining Ltd ("Pancontinental") and Minsarco Resources
("Minsarco") drill holes (PS001 to PS058) were drilled from 1970 to 1991.
The holes were HQ to NQ/NQ2 in size with daughter DD holes drilled BQ/BQ3 in
size. Platinum Australia Limited ("PLA") drill holes, PS059 to PS379 were
drilled using RC and DD coring, either PQ3, HQ3 or NQ3 in size. RC drilling
employed a face sampling bit. Several drill holes had RC pre-collars drilled
in advance of a diamond core tail.
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, the hole 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.
The drilling is generally oriented orthogonal to the interpreted dip and
strike of the known chromite reef mineralisation. However, several historical
holes were drilled less than optimal to the mineralisation due to structural
complexity not being understood at the time of historical drilling. Drill hole
spacing varies between 25m to 100m between sections and ~5m to 25m along
section. The spacing is restrictive in areas due to the topographic relief
of the Panton Sill.
Sampling and analysis methodology
Diamond drill core samples within the resource were predominately by HQ3 and
NQ2/NQ3 core with historical diamond daughter holes by BQ/BQ3. Samples range
from 0.06m to 2m with the average sample interval being approximately 0.5m.
All RC samples are from a rig mounted riffle splitter in 1m or 0.5m
intervals. Individual recoveries of diamond core samples were quantitative
when recorded. Core recovery information was recorded for approximately 60%
of the diamond drill holes with recoveries generally excellent. There is no
known relationship between recovery and grade identified.
Analysis for Au, Pt and Pd was by fire assay with an ICPMS finish. A mixed
acid, or more recently a 4-acid digest with an ICPAES/ICPMS finish was
completed for As, Co, Cr, Cu, Ni and S. Various laboratories have been
utilised including Bureau Veritas, Genalysis Intertek and Ultratrace all based
in Perth, WA.
Quality assurance and quality control (QA-QC)
PLA and Future Metals submitted standards (Certified Reference Material and
blanks) at an average rate of 1 in 30 samples. Laboratory standards were
recorded and included in the QA-QC assessment at 1:8. Laboratory repeat
analysis was completed 1:20 samples submitted for assay. Review of all data
shows that the results for Au, Pd, Pt, Ni, Cu and Co are within acceptable
levels for a Mineral Resource Estimation.
Estimation methodology
Geological and mineralisation constraints were generated on the basis of
logged chromitite reef lithology and the subdivided stratigraphic units
defined by the logged geology and mineralization. Hangingwall and footwall
units to each reef have been defined and an additional dunite lithology
mineralized halo. 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, Cr 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
0.5mE by 0.5mN by 0.5mRL 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. A 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
Sections 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 and
surrounding stratigraphical units 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
underground and open pit mining methods.
Cut-off grades
A cut-off grade of 1.4g/t PdEq(2) has been applied to the high-grade dunite
estimate. A cutoff grade of 0.9g/t PdEq(2) has been applied to the bulk 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 and chromite) have a reasonable potential of being ultimately
recovered and sold.
No metallurgical test work has been undertaken on recovering a chromite
concentrate from dunite and this has been excluded from equivalent
calculations for the High Grade Dunite and Bulk Dunite. The Company has not
included copper or cobalt in its PdEq calculations however continued
optimisation of metallurgical performance may warrant their inclusion in
subsequent MRE updates. Similarly, the Company's MRE does not include rhodium,
iridium or osmium due to paucity of assay data however flotation test work has
demonstrated the recovery of these valuable metals. The Company will examine
whether resampling of existing drill core for these elements is warranted as
it progresses the Project.
Metal recoveries used in the palladium equivalent (PdEq) calculations for each
element are based on metallurgical test work undertaken to date at Panton. It
should be noted that palladium, platinum and chromite 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 prices used are based on consensus forecasts of analysts estimates. The
chromite concentrate price used is a conservative estimate based on historical
pricing of South African chrome ore (40-42%, CIF China).
Metal recoveries used in the palladium equivalent (PdEq) calculations are
shown below:
§ Reef: Palladium 80%, Platinum 80%, Gold 70%, Nickel 45% and Chromite 70%
§ Dunite: Palladium 75%, Platinum 75%, Gold 85% and Nickel 40%
Assumed metal prices used are also shown below:
§ Palladium US$1,500/oz, Platinum US$1,250/oz, Gold US$1,750/oz, Nickel
US$20,000/t and US$175/t for chromite concentrate (40-42% Cr(2)O(3))
Metal equivalents were calculated according to the follow formulae:
§ Reef: PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.833 x Pt(g/t) +
1.02083 x Au(g/t) + 2.33276 x Ni(%) + 0.07560 x Cr(2)O(3) (%)
§ Dunite: PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.833 x Pt(g/t) +
1.322 x Au(g/t) + 2.2118 x Ni(%)
Metallurgical methods and parameters
As announced on 13 February 2023 'Mining and Processing Breakthrough at
Panton' and in the announcement on 11 July 2023 'Step Change in PGM Recovery -
Improved to 86%' the Company has successfully demonstrated the ability to
produce a high-grade Ni-PGM concentrate with consistent PGM(3E) flotation
recovery of ~80% to concentrate grades over 250g/t PGM(3E). Recoveries for Ni
have ranged from 37 - 45%. Recent test work by the Company has shown chromite
recoveries of 70% to a concentrate grading between 40-42% Cr(2)O(3) through
flotation and magnetic separation on a composite of flotation tails. Flotation
test work on dunite mineralisation has demonstrated recoveries in line with
those stated in the Palladium metal equivalents section above.
The Company believes these results can be further optimised however they do
support the development of a scoping level flow sheet. Further optimisation
and variability test work will be undertaken as the Company progresses the
Project past a scoping stage.
This announcement has been approved for release by the Board of Future Metals
NL.
Enquiries:
Future Metals NL
Jardee Kininmonth +61 8 9480 0414
info@future-metals.com.au (mailto:info@future-metals.com.au)
Strand Hanson Limited (Nominated Adviser) +44 (0) 207 409 3494
James Harris/James Bellman
Panmure Gordon (UK) Limited (UK Broker) +44 (0)207 886 2500
John Prior/Hugh Rich/Rauf Munir
FlowComms (UK IR/PR) +44 (0) 789 167 7441
Sasha Sethi
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as is forms part of United Kingdom domestic law pursuant to
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.
Competent Person's Statement
The information in this announcement that relates to Exploration Results in
relation to the Panton PGM Project is based on and fairly represents
information and supporting documentation compiled by Ms. Barbara Duggan (MSc),
a Competent Person, who is a Member of the Australian Institute of
Geoscientists. Ms. Duggan is a full-time employee of the Company and is
entitled to participate in the Future Metals Performance Rights Plan. Ms.
Duggan has sufficient experience that is relevant to the activity being
undertaken to qualify as a Competent Person as defined in the 2012 edition of
the Australasian Code for the Reporting of Exploration Results. The Qualified
Person has verified the data disclosed in this announcement, including
sampling and analytical data underlying the information contained in this
announcement. Ms. Duggan consents to the inclusion in this announcement of the
matters based on this 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 previous exploration
results for the Projects is extracted from the following announcements:
• 21 June 2022 | Independent Resource Estimate of 6.9Moz PdEq
• 27 July 2022 | High Grade Ni-Cu-PGE sulphides confirmed at
Panton
• 13 February 2023 | Mining and Processing Breakthrough at
Panton
• 21 March 2023 | High Grade PGM Mineralisation from 350m Step
Out Drilling
• 4 May 2023 | Drilling to commence at Nickel Sulphide Targets
• 24 May 2023 | RC drilling commences at Panton Ni-Cu-PGM
Targets
The above announcements are available to view on the Company's website at
future-metals.com.au. The Company confirms that it is not aware of any new
information or data that materially affects the information included in the
relevant original market announcements. The Company confirms that the
information and context in which the Competent Person's findings are presented
have not been materially modified from the original market announcements.
Glossary
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
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 mineral resource information contained within this announcement
Cr chromium, one of the transition metals elements
Cu copper, one of the transition metals elements
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
Panton PGM-Ni-Cr Project Panton PGM-Nickel-Cromium 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 One | Panton Mineral Resource Estimate (JORC Code 2022)
Category Mass Grade Contained Metal
(Mt) Pd Pt Au PGM(3E) (g/t) Ni Cr(2)O(3) PdEq(1) Cu Co Pd Pt Au PGM(3E) (Koz) Ni Cr(2)O(3) PdEq(1) Cu Co
(g/t) (g/t) (g/t) (%) (%) (g/t) (%) (ppm) (Koz) (Koz) (Koz) (kt) (kt) (Koz) (kt) (kt)
Upper Reef
Indicated 3.0 3.3 2.8 0.5 6.5 0.29 15.5 7.9 0.08 217 318 272 46 635 9 472 771 2 0.7
Inferred 4.9 3.2 2.7 0.4 6.4 0.30 15.6 7.8 0.10 221 506 431 65 1,003 15 761 1,227 5 1.1
Subtotal 7.9 3.2 2.8 0.4 6.4 0.30 15.6 7.8 0.09 219 824 703 111 1,637 23 1,233 1,998 7 1.7
Lower Reef
Indicated 1.4 1.3 1.7 0.1 3.1 0.17 10.7 4.1 0.04 200 59 79 6 143 2 151 186 1 0.3
Inferred 1.4 1.6 2.1 0.1 3.8 0.19 13.0 4.9 0.05 215 73 95 5 173 3 185 223 1 0.3
Subtotal 2.8 1.4 1.9 0.1 3.5 0.18 11.8 4.5 0.04 208 132 174 11 316 5 337 409 1 0.6
Total Reef
Indicated 4.5 2.6 2.4 0.4 5.4 0.25 14.0 6.7 0.07 211 377 350 51 778 11 623 957 3 0.9
Inferred 6.3 2.9 2.6 0.3 5.8 0.28 15.0 7.2 0.09 220 579 526 70 1,175 17 946 1,450 5 1.4
Subtotal 10.8 2.8 2.5 0.4 5.6 0.27 14.6 7.0 0.08 216 956 876 122 1,954 29 1,569 2,407 8 2.3
High Grade Dunite (Underground, below 300mRL, 1.4g/t PdEq cut-off)
Indicated 5.9 0.6 0.6 0.2 1.4 0.20 2.2 1.7 0.04 151 120 109 30 259 12 132 334 2 0.9
Inferred 20.5 0.6 0.6 0.1 1.3 0.21 2.3 1.8 0.04 160 425 373 87 885 43 478 1,154 9 3.3
Subtotal 26.4 0.6 0.6 0.1 1.3 0.21 2.3 1.8 0.04 158 545 482 118 1,144 54 610 1,488 11 4.2
Reef + High Grade Dunite
Indicated 10.4 1.5 1.4 0.2 3.1 0.22 7.3 3.9 0.05 177 497 459 81 1,037 23 755 1,291 5 1.8
Inferred 26.8 1.2 1.0 0.2 2.4 0.22 5.3 3.0 0.05 174 1,004 899 158 2,061 60 1,424 2,604 14 4.7
Subtotal 37.2 1.3 1.1 0.2 2.6 0.22 5.9 3.3 0.05 175 1,501 1,358 239 3,098 83 2,179 3,895 19 6.5
Bulk Dunite (Near surface, above 300mRL, 0.9g/t PdEq cut-off)
Indicated 30.3 0.4 0.4 0.1 0.9 0.18 1.1 1.3 0.03 144 384 363 103 850 56 337 1,220 9 4.4
Inferred 25.3 0.3 0.3 0.1 0.7 0.18 1.3 1.1 0.03 140 273 230 61 564 46 329 873 8 3.5
Subtotal 55.7 0.4 0.3 0.1 0.8 0.18 1.2 1.2 0.03 142 657 593 164 1,414 102 666 2,094 17 7.9
Total Resource
Indicated 40.7 0.7 0.6 0.1 1.4 0.19 2.7 1.9 0.04 153 881 822 184 1,887 79 1,092 2,511 15 6.2
Inferred 52.1 0.8 0.7 0.1 1.6 0.20 3.4 2.1 0.04 157 1,277 1,129 219 2,625 106 1,753 3,478 22 8.2
Total 92.9 0.7 0.7 0.1 1.5 0.20 3.1 2.0 0.04 155 2,158 1,951 403 4,512 185 2,846 5,989 37 14.4
(1) Refer page 12 for palladium equivalent (PdEq) calculation
(2) No cut-off grade has been applied to reef mineralisation and a cut-off of
0.9g/t PdEq has been applied to the Bulk Dunite mineralisation and 1.4g/t PdEq
cut-off to the High-Grade Dunite mineralisation
Appendix Two | JORC Code (2012) Edition Table 1
Section 1 Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling techniques § Nature and quality of sampling (eg cut channels, random chips, or specific Holes PS001 to PS058 were completed by Pancontinental Mining Ltd ("Pancon")
specialised industry standard measurement tools appropriate to the minerals and Minsarco Resources NL ("Minsarco"). Details related to the nature and
under investigation, such as down hole gamma sondes, or handheld XRF quality of the sampling have not been recorded except for two holes which had
instruments, etc). These examples should not be taken as limiting the broad samples that had quarter, half and full core samples collected. All sampling
meaning of sampling. was from diamond core. Samples ranged from 0.06m to 2m in length.
Additionally, no information is recorded regarding sample representativity.
§ Include reference to measures taken to ensure sample representivity and the Sampling intervals correlate to historical drill logs where mineralisation was
appropriate calibration of any measurement tools or systems used. logged.
§ Aspects of the determination of mineralisation that are Material to the
Public Report. In cases where 'industry standard' work has been done this
would be relatively simple (eg 'reverse circulation drilling was used to Holes PS059 to PS379 were drilled by Platinum Australia Ltd ("PLA") using RC
obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for and diamond coring. Reverse circulation ("RC") sampling was a combination of
fire assay'). In other cases more explanation may be required, such as where 4m composites produced by spearing 1m bulk samples and 1m split samples taken
there is coarse gold that has inherent sampling problems. Unusual commodities from the rig mounted sample splitter. Sample intervals ranged from 1m to
or mineralisation types (eg submarine nodules) may warrant disclosure of 4m. Diamond drill core was half or quarter cored with sampling intervals
detailed information. ranging from 0.15m to 3.0m. Details related to the nature and quality of all
drill holes completed by PLA was not recorded in the database with
approximately 10% of the sampling details not recorded. Sampling intervals
correlate to historical drill logs where mineralisation was logged.
Qualitative care was taken when sampling diamond drill core to sample the same
half of the drill core with half core remaining in the trays. All sampling was
either supervised by, or undertaken by, qualified geologists.
Holes PS380 to PS414 were completed by Future Metals NL ("FME"). All holes
were diamond cored with PQ3 from surface reducing to HQ3 and NQ2 where
appropriate. All samples are half or quarter cored with sample intervals
ranging from 0.06cm to 2.0m. Qualitative care was taken when sampling
diamond drill core to sample the same half of the drill core with the
remaining half of core left in the trays. All sampling was either supervised
by, or undertaken by, qualified geologists.
Across all drill holes, not all core or sections drilled with RC (in
particular pre-collars) were sampled. In diamond drill core, the intervals of
rock that were not recognized as part of the main reef zone from geological
logging were not always sampled. Additionally, not all intervals between
mineralised zones were historically sampled.
Drilling techniques § Drill type (eg core, reverse circulation, open-hole hammer, rotary air From 1970 to 1991, drill holes PS001 to PS058 were completed by Pancon and
blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or Minsarco. The holes were HQ to NQ/NQ2 in size with daughter holes drilled to
standard tube, depth of diamond tails, face-sampling bit or other type, BQ/BQ3. 29 precollars were drilled with 62 only diamond holes. Multiple
whether core is oriented and if so, by what method, etc). holes had diamond wedges/daughter holes. Details regarding core orientation is
not recorded.
From 2000 to 2012, PLA completed holes PS059 to PS379 that are a mix of RC and
diamond drill holes. From the holes drilled by PLA, 71 holes were diamond
cored, 137 were RC holes and 117 were RC precollars with diamond core tails.
Details of core orientation, where recorded, was by the Reflex Orientation
Tool.
From 2020, FME drilled diamond core holes PS380 to PS414. All diamond core
drill holes were cored from surface by either PQ3 or HQ3 followed by NQ3 where
appropriate. Generally, the top 50m (approximately) of rock 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, or due to depth drilling, the hole was continued in NQ3
core. Details of the orientation tool have only been recorded for PS407 to
PS414. The core was orientated using a BLY TruCore UPIX Orientation Tool.
Diamond holes were triple tubed 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 Holes PS001 to PS058: Information regarding the method of core recovery and
results assessed. results assessed is not recorded in the historical data.
§ Measures taken to maximise sample recovery and ensure representative nature
of the samples.
Holes PS059 to PS379: Sample recovery was assessed qualitatively with sample
§ Whether a relationship exists between sample recovery and grade and whether moisture, bulk recovery and quality recorded for each sample in 57% of the
sample bias may have occurred due to preferential loss/gain of fine/coarse drilling. The remaining drill holes do not have any core recovery methods
material. recorded in the historical data. RC samples were collected off the rig mounted
cyclone directly into calico sample bags. Where possible, samples were
collected dry. Composite samples were collected using a spear from the
center of the drill spoil pile.
Holes PS380 to PS414: Sample recovery was recorded for 75% of the
drilling. No core recovery or core loss was recorded for any of the drilling
completed.
For all drill holes, there is no known relationship between recovery and grade
identified and core is very competent upon recent review of available drill
core.
Logging § Whether core and chip samples have been geologically and geotechnically § All drill holes were geologically logged for lithology, weathering,
logged to a level of detail to support appropriate Mineral Resource regolith, texture, grainsize and mineralisation. Alteration was only logged
estimation, mining studies and metallurgical studies. in drill holes from PLA to present. All logging was at an appropriate level
of detail to support appropriate Mineral Resource estimation, mining studies
§ Whether logging is qualitative or quantitative in nature. Core (or costean, and metallurgical studies.
channel, etc) photography.
§ Where logging was historically vague, relogging was completed using
§ The total length and percentage of the relevant intersections logged. historic photos and geochemistry to provide as much detail as possible.
§ Core photography is present for more than 50% of all drilling at the Panton
PGM Project.
§ All logging is qualitative in nature with all drill holes logged in full.
Sub-sampling techniques and sample preparation § If core, whether cut or sawn and whether quarter, half or all core taken. Holes PS001 to PS058:
§ If non-core, whether riffled, tube sampled, rotary split, etc and whether § The details of core sampling procedures and representativity are not
sampled wet or dry. recorded in the historical data.
§ For all sample types, the nature, quality and appropriateness of the sample § No details on field duplicates are recorded in the historical data.
preparation technique.
Holes PS059 to PS379:
§ Quality control procedures adopted for all sub-sampling stages to maximise
representivity of samples. § RC drilling by PLA was sampled from a rig mounted riffle splitter in 1m, or
half metre intervals. RC samples were mostly dry with a small percentage damp
§ Measures taken to ensure that the sampling is representative of the in-situ or wet. Sections of drill holes logged as unmineralised were sampled as 4m
material collected, including for instance results for field composites using a PVC spear.
duplicate/second-half sampling.
§ All core that is sampled is cut using a diamond saw but only the type of
§ Whether sample sizes are appropriate to the grain size of the material sample was recorded in ~55% of the diamond sampling. Where PQ3 core was
being sampled. drilled for metallurgical testing, the core is cut in half, and then one half
cut again into quarters. One quarter core is kept as a reference, one quarter
core is sent to the laboratory for assay and the remaining half core was sent
for metallurgical test work.
§ 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.
§ Limited duplicate core samples were collected by PLA with occasional ¼
core samples being assayed against the original ½ core sample assayed (1:167
samples).
Holes PS380 to PS414:
§ All diamond core was cut in half (HQ3 and NQ3) with PQ3 core cut in half
and then quartered for analysis. Half core was left in the tray for record
purposes. Limited field duplicates were collected (1:119 samples).
§ Sample preparation was completed by various laboratories with sample sizes
considered appropriate for the material being sampled.
Quality of assay data and laboratory tests § The nature, quality and appropriateness of the assaying and laboratory § Details regarding the assaying and laboratory procedures for holes PS001 to
procedures used and whether the technique is considered partial or total. PS058 are not recorded in the database.
§ For geophysical tools, spectrometers, handheld XRF instruments, etc, the § Analysis by PLA for holes PS059 to PS379 was completed by fire assay with
parameters used in determining the analysis including instrument make and an ICPMS finish for Au, Pd and Pt. As, Co, Cr, Cu, Ni and S were analysed by a
model, reading times, calibrations factors applied and their derivation, etc. sodium peroxide fusion and hydrochloric digest with an ICPOES finish.
Laboratory repeat analysis was completed on 1:20 samples submitted for assay.
§ Nature of quality control procedures adopted (eg standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels of § FME complete similar analysis to PLA for holes PS380 to PS406. Holes
accuracy (ie lack of bias) and precision have been established. PS407 to PS414 were analysed by 50g fire assay with an ICPMS finish for Au, Pd
and Pd with a full multi-element analysis (4 acid digestion with ICPMS
finish).
§ All analysis completed are appropriate for the type and style of
mineralisation.
§ Details relating to the quality of assay data and laboratory test are not
recorded in the historical data for PS001 to PS058. This includes any record
of CRM's and external laboratory checks.
§ For holes PS059 to PS379, historical data records indicate PLA submitted
standards/blanks 1:36 samples with lab standards recorded at 1:8. Review of
all standards for Pd, Pt, Ni, Cu, Co and Au indicate that the results are
within acceptable levels with any outliers present a result of a data entry
errors.
§ For holes PS380 to PS414, FME submitted standards/blanks at ratio of 1:30
with lab standards recorded at 1:8. Review of all standards for Pd, Pt, Ni,
Cu, Co and Au indicate that the results are within acceptable levels with any
outliers present a result of data entry errors.
§ No geophysical tools, spectrometers or handheld XRF instruments, etc were
used.
Verification of sampling and assaying § The verification of significant intersections by either independent or § No adjustments were made to the assay data.
alternative company personnel.
§ PLA and FME twinned several drill holes.
§ The use of twinned holes.
§ Primary data including drill hole data, geological logging and sample
§ Documentation of primary data, data entry procedures, data verification, intervals were recorded by paper and then translated digitally by PLA. The
data storage (physical and electronic) protocols. original paper logs no longer exist. All FME drilling was logged
digitally. All logging and drill hole information is stored in the company
§ Discuss any adjustment to assay data. database which is a Datashed SQL database.
§ No significant intersections are reported.
Location of data points § Accuracy and quality of surveys used to locate drill holes (collar and § Minsarco, Pancon and PLA drilling was initially located on a local grid
down-hole surveys), trenches, mine workings and other locations used in system which was re-installed by PLA using metal survey stakes by Whelan's
Mineral Resource estimation. surveyors in Kununurra. The local grid had survived in the field to be
verified and converted to Australian Map Grid 1966, Zone 52.
§ Specification of the grid system used.
§ FME has subsequently converted the location data to Map Grid of Australia
§ Quality and adequacy of topographic control. 1994, Zone 52.
§ Where historical collars remained in the field, DGPS of the collar position
was collected.
§ All FME holes included in the Mineral Resource Estimation were DGPS to an
accuracy of <0.1m where possible.
§ Down hole survey methods by Minsarco involved a combination of down hole
cameras and acid bottle methods. Pancon down hole surveying was completed by
down hole camera. All 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 due to magnetism
within the host ultramafic rocks. PLA found that, in general, the down hole
camera surveys were acceptable. All FME down hole surveys were taken with a
north seeking gyroscope at regular intervals down hole.
§ The topographic control is considered better than <3m and is considered
adequate.
Data spacing and distribution § Data spacing for reporting of Exploration Results. § No Exploration Results are reported in this announcement.
§ Whether the data spacing and distribution is sufficient to establish the § Drill hole spacing varies between 25m to 100m between sections and ~5m to
degree of geological and grade continuity appropriate for the Mineral Resource 25m along section. Drill spacing is restrictive in areas due to the
and Ore Reserve estimation procedure(s) and classifications applied. topographic relief of the Panton Sill.
§ Whether sample compositing has been applied. § Results from the drilling to date are considered sufficient to assume
geological or grade continuity appropriate for Mineral Resource estimation
procedure(s) and classifications.
§ No compositing undertaken for diamond drill core or RC samples.
Orientation of data in relation to geological structure § Whether the orientation of sampling achieves unbiased sampling of possible § Drilling is generally oriented orthogonal to the interpreted dip and strike
structures and the extent to which this is known, considering the deposit of the known chromite reef mineralisation. However, several historical holes
type. were drilled less than optimal to the mineralisation due to structural
complexity not being understood at the time of drilling.
§ If the relationship between the drilling orientation and the orientation of
key mineralised structures is considered to have introduced a sampling bias, § No intended sampling bias is present.
this should be assessed and reported if material.
Sample security § The measures taken to ensure sample security. § Details for drill samples collected prior to work completed by FME are not
recorded in the historical documents or in the database.
§ All sampling completed by FME was delivered to the Company's transport
contractor's yard in Halls Creek directly by Company personnel in a securely
sealed bulka bag. The transport company delivered samples directly to the
assay laboratory.
Audits or reviews § The results of any audits or reviews of sampling techniques and data. § No independent audits or reviews have 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-Cr Project comprises 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 NL. The MLs were granted
national park and environmental settings. on 17 March 1986 and are currently valid until 16 March 2028. A 0.5% net
smelter return royalty is payable to Elemental Royalties Australia Pty Ltd in
§ The security of the tenure held at the time of reporting along with any respect of any future production of chrome, cobalt, copper, gold, iridium,
known impediments to obtaining a licence to operate in the area. 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.
§ The Panton PGM-Ni-Cr Project is located within the traditional lands of the
Malarngowen with the necessary agreements in place. The tenure is within the
Alice Downs Pastoral Station.
§ 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 sampling in the mid-1960s. Pickland Mathers and Co
drilled the first holes to test the intrusives in 1970, followed by Minsaco
Resources Pty Ltd and completed a prefeasibility study in 1987. In 1989,
Pancontinental Mining Limited and Degussa Exploration GMHB drilled 32 further
holes to define a resource of 2.2 million tonnes at a grade of 5.6 g/t PGM and
Au containing 387,000 ounces. By 1991 a total of 59 primary diamond core
drill holes with an additional 30 daughter holes were drilled into the Panton
Sill Upper and Middle Chromitite Reefs that were used to estimate the
resource. Between 1991 and 2000 there was no exploration activity at Panton.
§ Platinum Australia Limited (PLA) acquired the project in 2000, mining a new
adit for metallurgical testing and further drilling for a new resource
update. A major drilling campaign was completed with a further 325 diamond
and reverse circulation holes completed. Twenty-one trenches were also
completed. From the adit, 650t of material from the Upper Reef was shipped
to South Africa for pilot plant test work.
§ In March 2012, PLA announced the results of a review of its 2003 Bankable
Feasibility Study. The 2012 BFS Review assumed the resources would be mined
via a combination of open and underground with annual production of 600,000tpa
for ~83,000ozpa 3E (Pt+Pd+Au).
§ The 2004 JORC Measured, Indicated and Inferred resources for the Panton
Project were 14.32Mt at 5.20g/t PGM+Au (at 2.19 g/t Pd, 0.31g/t Au, 0.27% Ni,
0.07% Cu) was reported by PLA.
§ In May 2012, Panton Sill Pty Ltd (a wholly owned subsidiary of Panoramic
Resources Ltd) then known as Panoramic Precious Metals Pty Ltd, purchased the
Panton Project, which included M80/103, M80/104 and M80/105, from PLA. In
October 2012, Panoramic Precious Metals Pty Ltd changed its name to Panton
Sill Pty Ltd.
§ While Panoramic Resources held the project, further metallurgical studies
were completed but little additional work was undertaken on site. In 2021,
Great Northern Palladium purchased the project from Panoramic Resources. Red
Emperor Resources Limited acquired this project prior to Future Metals Limited
acquiring the project in 2022.
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 approximately 9km long, 3km wide and
1.5km depth
§ PGM mineralisation is associated with several thin cumulate Chromitite
reefs within the ultramafic sequence. 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).
Drill hole Information § A summary of all information material to the understanding of the § No previously unreleased exploration results are included in this
exploration results including a tabulation of the following information for announcement.
all Material drill holes:
§ No material information has been excluded in this announcement.
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level - elevation above sea level in metres) of
the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
§ If the exclusion of this information is justified on the basis that the
information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain why
this is the case.
§
Data aggregation methods § In reporting Exploration Results, weighting averaging techniques, maximum § No Exploration Results are reported in this announcement.
and/or minimum grade truncations (eg cutting of high grades) and cut-off
grades are usually Material and should be stated. § Metal price assumptions used in the metal equivalent calculations are
Palladium US$1,500/oz, Platinum US$1,250/oz, Gold US$1,750/oz, Nickel
§ Where aggregate intercepts incorporate short lengths of high-grade results US$20,000/t and Chromite US$175t for chromite concentrate (40-42% Cr(2)O(3))
and longer lengths of low-grade results, the procedure used for such
aggregation should be stated and some typical examples of such aggregations § Metallurgical recovery assumptions used in the metal equivalent calculation
should be shown in detail. are:
§ The assumptions used for any reporting of metal equivalent values should be § Reef: Palladium 80%, Platinum 80%, Gold 70%, Nickel 45% and Chromite 70%
clearly stated.
§ Dunite: Palladium 75%, Platinum 75%, Gold 85% and Nickel 40%
§ Pd equivalence is calculated by:
§ Reef: PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.833 x Pt(g/t) +
1.02083 x Au(g/t) +2.33276 x Ni(%) + 0.07560 x Cr(2)O(3)(%)
§ Dunite: PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.833 x Pt(g/t) +
1.32222 x Au(g/t) +2.2118 x Ni(%)
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.
§ Drilling is generally oriented orthogonal to the interpreted dip and strike
§ If the geometry of the mineralisation with respect to the drill hole angle of the known mineralisation. However, several historical holes were drilled
is known, its nature should be reported. less than optimal to the mineralisation due to structural complexity not being
understood at the time of drilling.
§ 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 § Relevant maps and diagrams have been included in the body of this
should be included for any significant discovery being reported These should announcement.
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 § All holes drilled at the Panton PGM-Ni-Cr project included in this resource
practicable, representative reporting of both low and high grades and/or envelope have been previously reported.
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 meaningful and relevant data relating to the Mineral Resource has been
including (but not limited to): geological observations; geophysical survey included.
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.
Further work § The nature and scale of planned further work (eg tests for lateral § Scoping study work is near completion.
extensions or depth extensions or large-scale step-out drilling).
§ Any potential extensions to mineralisation are shown in the figures in the
§ Diagrams clearly highlighting the areas of possible extensions, including body of the text.
the main geological interpretations and future drilling areas, provided this
information is not commercially sensitive. § Infill sampling from available historical drill core as well as additional
infill drilling is being reviewed to improve confidence in the MRE.
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 will be undertaken at the
§ If no site visits have been undertaken indicate why this is the case. earliest possible opportunity.
Geological interpretation § Confidence in (or conversely, the uncertainty of) the geological § The confidence in the interpretation is high as a result of the
interpretation of the mineral deposit. predominance 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 ABGM group and provided to the CP.
estimation.
§ The current geological interpretation is based on the logged geology and
§ The use of geology in guiding and controlling Mineral Resource estimation. assayed chromite content within the host dunite sequence. Significant sulphide
percentage was also used in the criteria to identify reef hangingwall and
§ The factors affecting continuity both of grade and geology. footwall stratigraphic mineralisation defined by a 3E (Pd + Pt + Au) cut off
of 0.75g/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 ABGM 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
hangingwall, footwall and dunite material, 3m downhole length composites were
generated.
§ A parent block size of 50mE by 50mN by 20mRL was selected with sub-celling
to 0.5mE by 0.5mN by 0.5mRL 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 5mRL
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 and mineralization model domained the mineralized lode
Resource estimates. material and were used 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 remainder of
the 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 As announced on 13 February 2023 'Mining and Processing Breakthrough at
processes and parameters made when reporting Mineral Resources may not always Panton' and in the announcement on 11 July 2023 'Step Change in PGM Recovery -
be rigorous. Where this is the case, this should be reported with an Improved to 86%' the Company has successfully demonstrated the ability to
explanation of the basis of the metallurgical assumptions made. produce a high-grade Ni-PGM concentrate with consistent PGM(3E) flotation
recovery of ~80% to concentrate grades over 250g/t PGM(3E). Recoveries for Ni
have ranged from 37 - 45%. Recent test work by the Company has shown chromite
recoveries of ~70% to a concentrate grading between 40-42% Cr2O3 through
flotation and magnetic separation on a composite of flotation tails. Flotation
test work on dunite mineralisation has demonstrated recoveries in line with
those stated in the Palladium metal equivalents section.
o The Company believes these results can be further optimised however they
do support the development of a scoping level flow sheet. Further optimisation
and variability test work will be undertaken as the Company progresses the
Project past a scoping stage.
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 domains 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 and their associated hangingwall and footwall
distribution of the data). domains only based on the more complete degree of sampling and better
knowledge of the metallurgical parameters. Sampling in the dunite material was
§ Whether the result appropriately reflects the Competent Person's view of not completed for every drillhole and the sample spacing is therefore more
the deposit. irregular and incomplete. Metallurgical parameters are also 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
Appendix Three | Peer Benchmarking References
Company Reference link
CHN Gonneville Project Mineral Resource Estimate (JORC Code 2012), 28 March 2023
(https://chalicemining.com/wp-content/uploads/2023/07/20230531-Mineral-Resource-and-Competent-Person-Statements-Extract-VF.pdf)
POD Parks Reef Resource Doubles to 6Moz 5E PGM
(https://wcsecure.weblink.com.au/clients/podiumminerals/v2/headline.aspx?headlineid=61119167)
GAL Maiden Mineral Resource at Callisto Marks New Province
(https://wcsecure.weblink.com.au/clients/galileomining/headline.aspx?headlineid=61171817)
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