REG - Future Metals NL - Quarterly Activities and Cash Flow to 30 June 2022

Future Metals NLAnnouncement

29/07/2022 07:01

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RNS Number : 1103U  Future Metals NL   29 July 2022

Quarterly Activities and Cash Flow Report

for the period ended 30 June 2022

 

Future Metals NL ("Future Metals" or the "Company", ASX | AIM: FME), a
platinum group metals ("PGM") focussed company, is pleased to provide its
Quarterly Activities and Cashflow report for the quarter ended 30 June 2022
(the "June Quarter").

Highlights

Panton PGM-Ni Project | Updated JORC Mineral Resource Estimate ("MRE")

§  Updated independent JORC MRE confirmed 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))

§  Represented 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

§  Included 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

§  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

§  Significant further growth potential with the Panton deposit remaining
'open' at depth and along strike, highlighted in the Company's Exploration
Update referred to below

Exploration Update

§  Multiple new exploration targets for sulphide-rich (Ni, Cu, Au, Co &
PGMs) zones identified following a detailed prospectivity review of Panton's
existing geological data, supported by a review by Ni-Cu-PGE expert Jon
Hronsky of Western Mining Services

§  The highly prospective Lower Zone is the lowest portion of the
stratigraphy, closest to the feeder conduit of the intrusion where sulphides
containing PGM, base metals and gold are most likely to accumulate during
emplacement

§  Trends in metal distribution and thickness variations in lithological
units support the potential for a highly mineralised 'Keel Zone' or 'Feeder
Conduit' to have developed at depth. High-grade intercepts identified include:

Lower Zone

·        19m @ 0.51 g/t PGM3E(1) & 0.49% Ni & 0.28% Cu &
0.022% Co from 88m (PS158) including:

o   3m @ 0.81 g/t PGM3E(1) & 1.16% Ni & 0.66% Cu & 0.053% Co from
88m

o   1m @ 0.67 g/t PGM3E(1) & 0.46% Ni & 1.57% Cu & 0.022% Co from
95m

o   2m @ 1.09 g/t PGM3E(1) & 1.01% Ni & 0.22% Cu & 0.044% Co from
104m

Main Zone

·        4m @ 2.18 g/t Au & 1.18% Ni & 1.05% Cu from 242.5m
(PS053) including:

o   1m @ 6.80 g/t Au & 0.62% Ni & 2.05% Cu from 242.5m (PS053)

o   2m @ 0.92 g/t Au & 1.93% Ni & 0.76% Cu from 243.5m (PS053)

·        1m @ 23.04 g/t Au & 0.20% Ni & 0.03% Cu from 35m (PS083)

·        1m @ 1.78 g/t Au & 0.19% Ni & 1.42% Cu from 5m (PS180)

·        2m @ 0.14 g/t PGM3E(1) & 0.09% Ni & 0.73% Cu &
0.012% Co from 28m (PS269)

·             1m @ 0.72 g/t PGM3E(1) & 0.16% Ni & 1.02% Cu
& 0.023% Co from 20m (PS128)

Corporate

§  In anticipation of the Company rapidly advancing Panton, Mr Jardee
Kininmonth, Chief Executive Officer was appointed to the Board as Managing
Director in May 2022. Mr Tom O'Rourke was also appointed as Company Secretary
and Chief Financial Officer

§  The Company completed a small placement of share options on the ASX
during the June Quarter, which raised A$50,000 before expenses and facilitated
the Company obtaining ASX quotation of the entire class of previously unlisted
10c options

§  Cash position of approximately A$3.3 million as at 30 June 2022

(1) Refer page 8 for palladium equivalent (PdEq) calculation

 

Mr Jardee Kininmonth, Managing Director & CEO of Future Metals, commented
on the quarter:

"It has been a pivotal quarter for the Company with the release of our new
Mineral Resource Estimate. This new MRE now places Panton as the second
largest PGM deposit in Australia, and importantly it contains a discrete
high-grade portion which is the highest reported grade PGM deposit in
Australia.

 

The MRE has provided the basis to initiate a scoping study to assess the
optimal development pathway for Panton, balancing potential capital
requirements, metallurgical progress, mining rates and the resulting
economics. Metallurgical test work has progressed well with the Company
confirming prior test work successes with high-grade composites.

 

Subsequent to the quarter end, the Company announced the results of an
exploration prospectivity review which highlighted the significant potential
for a large Ni-Cu-PGE system at Panton within the largely untested lower
portion of the stratigraphy, which outcrops at surface and extends below the
reef system. This represents a new exploration model for Panton, targeting a
different style of mineralisation than our known reef-style resource.

 

We are very excited by what we might uncover from an exploration programme for
Ni-Cu-PGE sulphides, given the reef-style mineralisation has always been the
sole focus for prior owners of Panton. Combined with progressing the scoping
study on our already significant PGM-Ni resource, there are now multiple value
drivers being progressed at Panton."

 

 

June Quarter Activity

Drilling | Exploration Overview

Following release of the much anticipated MRE, the Company continued to
complete its prospectivity review of Panton's existing data supported by
Ni-Cu-PGE expert Mr Jon Hronsky of Western Mining Services.

This review identified multiple new exploration targets for sulphide-rich (Ni,
Cu, Au, Co & PGM) zones. A summary of this work is detailed below which
was released after the Quarter end (please refer to the Company's ASX &
AIM announcements dated 27 July 2022 for further information).

Lower Zone Exploration Model

The Company has identified three exploration concepts that it will focus on
moving forward:

§  the Keel Zone,

§  the Southern Conductors and

§  the Basal Contact Zone.

The Keel Zone coincides with the interpreted syncline axis in the Lower Zone.
Such positions are commonly associated with more prospective positions in
other mafic-ultramafic intrusions, because of proximity to a likely feeder
position.

The Southern Conductors have been identified following the acquisition and
analysis of airborne electromagnetic ("EM") data over the tenement, which
indicates there are a number of strong late time features suggesting they are
relatively deep (~200-300m) and are possibly caused by sulphide rich
mineralisation. Anomalous soil samples correlate well with the position of the
Southern Conductors.

The Basal Contact Zone is the relatively thick lowermost section of the
ultramafic section of the Panton layered intrusion and encompasses what both
Platinum Australia Limited and Future Metals have been calling the "Northern
Anomaly" mineralisation.

Drilling to date has demonstrated the bulk mineralisation potential of these
rocks and the review highlighted the potential for zones (or lenses) of
sulphide rich mineralisation to exist within this extensive host unit.

http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf)

Figure One | Panton 3D Geology Model

http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf)

Figure Two | Late EM Conductors - Panton Plan View

Panton Mineral Resource Estimate | Overview

During the June Quarter, the Company received an updated resource estimation
and announced that the project's independent JORC Code (2012) MRE had
increased to 129Mt @ 1.20g/t PGM(3E), 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 PGM(3E), 239kt Ni, 48kt Cu and 20kt Co (6.9Moz PdEq(1)) (please refer
to the Company's ASX and AIM announcements of 21 June 2022).

The MRE includes a high-grade reef of 25Mt @ 3.57g/t PGM(3E), 0.24% Ni, 0.07%
Cu and 192ppm Co (3.86g/t PdEq(1)) for contained metal of 2.9Moz PGM(3E), 60kt
Ni, 18kt Cu and 5kt Co (3.2Moz PdEq(1)).

http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf)

Table One | Panton Mineral Resource Estimate (JORC Code 2012)

Panton's previous MRE, as set out in the Company's prospectus dated 18 May
2021, related only 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.

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 >100g/t PGM.

http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf)

Figure Three | Plan View of Panton including MRE area

http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf)

Figure Four | Cross Section of Panton Block Model - A Block

http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1103U_1-2022-7-28.pdf)

Figure Five | Cross Section of Panton Block Model - C Block

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 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 to 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 which is
currently underway.

Corporate

Board and Management Changes

In anticipation of the Company rapidly advancing the Panton PGM-Ni project
following the completion of the updated MRE, a number of key appointments were
made during the June Quarter.

Mr Jardee Kininmonth, Chief Executive Officer of Future Metals, was appointed
to the Board as Managing Director with effect from 11 May 2022. Mr
 Kininmonth had previously been appointed CEO on 31 January 2022.

In addition, the Company appointed Mr Tom O'Rourke, a qualified chartered
accountant as Company Secretary and Chief Financial Officer, to ultimately
replace long serving Finance Director and Company Secretary, Mr Aaron
Bertolatti.

The skill sets of these appointees, when combined with those of the existing
Board members and senior management team, place the Company in an excellent
position to advance its wholly owned Panton PGM-Ni Project and generate future
shareholder value.

Video Presentation

Following publication of the updated MRE findings, the Company released a
short video summarising the updated resource which was presented by MD and
CEO, Mr Jardee Kininmonth. This video is available on the Company's website:
Media - Future Metals NL (future-metals.com.au)
(https://future-metals.com.au/investor-centre/media/) .

Financial Commentary

The Quarterly Cashflow Report (Appendix 5B) for the period ending 30 June 2022
provides an overview of the Company's financial activities. The Quarterly
Cashflow Report (Appendix 5B) is available at the following
link: http://www.rns-pdf.londonstockexchange.com/rns/1103U_2-2022-7-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1103U_2-2022-7-28.pdf) and on
the Company's website.

The Company held A$3.3 million in cash held at the end of the June Quarter.
The Company raised A$50k before expenses from a small placement of share
options on the ASX during the June Quarter. This placement facilitated the
Company obtaining ASX quotation of the previously unlisted 10c options.

Expenditure on exploration during the quarter amounted to approximately
A$565k.

Payments for administration and corporate costs amounted to approximately
A$478K. This included payments to related parties and their associates of
A$123k, comprising Director fees and remuneration (including superannuation).

Palladium Equivalent (PdEq)

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 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 calculations are shown
below:

§  Palladium 80%, Platinum 80%, Gold 70%, Nickel 45%, Copper 67.5% and
Cobalt 60%

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 formula:

§  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(%)

Statement of Commitments

The June Quarter is covered by the Statement of Commitments(1) outlined in the
Company's ASX Prospectus dated 18 May 2021.

A summary of expenditure to date is outlined in Table Two below.

                                                   Proposed Use of Funds              Actual

                                                   13 June 2021 to 13 June 2023       (13 June 2021 to

                                                   $                                  30 June 2022)

                                                                                      $
 Exploration & development expenditure
 Panton Option consideration                       3,000,000                          3,000,000
 Estimated duty liability                          1,755,495                          560,415
 Drilling of extensions                            2,000,000                          2,744,105
 Metallurgical testwork                            500,000                            161,864
 Process design, mining and development studies    1,000,000                          27,720
 Other technical studies                           500,000                            -
 Assessment of complementary assets or projects    500,000                            -

 Estimated cash expenses of the Australian Offers            1,077,834                1,164,174
 Estimated cash costs for readmission to AIM       1,124,334                          910,800
 Administration costs                              2,000,000                          2,014,110
 Working Capital                                   768,200                            44,241

Table Two | Statement of Commitments

(1) The above table is a statement of current intentions. Investors should
note that the allocation of funds set out in the above table may change
depending on a number of factors including the results of exploration, outcome
of development activities, regulatory developments and market and general
economic conditions. In light of this the Board reserves the right to alter
the way the funds are actually applied

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.

 

Notes to Editors

About Platinum Group Metals (PGMs)

PGMs are a group of six precious metals being Platinum (Pt), palladium (Pd),
iridium (Ir), osmium (Os), rhodium (Rh), and ruthenium (Ru). Exceptionally
rare, they have similar physical and chemical properties and tend to occur, in
varying proportions, together in the same geological deposit. The usefulness
of PGMs is determined by their unique and specific shared chemical and
physical properties.

PGMs have many desirable properties and as such have a wide variety of
applications. Most notably, they are used as auto-catalysts (pollution control
devices for ICE vehicles), but are also used in jewellery, electronics,
hydrogen production / purification and in hydrogen fuel cells.  The unique
properties of PGMs help convert harmful exhaust pollutant emissions to
harmless compounds, improving air quality and thereby enhancing health and
wellbeing.

 

 

Appendix One | Exploration and Mining Permits

Changes during the June Quarter

 Project  Location      Tenement      Interest at beginning of Quarter  Interest at end of Quarter
          No changes during the June Quarter

 

Farm-In / Farm Out Agreement changes during the June Quarter

 Joint Venture  Project  Location  Tenement  Interest at beginning of Quarter  Interest at end of Quarter
 The Company has no Joint Venture Agreements

 

Interests in Mining & Exploration Permits & Joint Ventures at 30 June
2022

 Project                Location           Tenement  Area       Interest at end of Quarter
 Panton PGM-Ni Project  Western Australia  M80/103   8.6km(2)   100%

                                           M80/104   5.7km(2)   100%
                                           M80/105   8.3km(2)   100%

 

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