REG - Future Metals NL - Quarterly Activities Report to 31 March 2023
28/04/2023 07:00
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RNS Number : 7668X Future Metals NL 28 April 2023
28 April 2023
Future Metals NL
Quarterly Activities Report
for the period ended 31 March 2023
Highlights
§ Discovery of a large 1km long untested embayment feature ("BC1") with
multiple coincident Ni-Cu-PGM sulphide geophysical and stream sediment
anomalies
§ Step out drilling results at Panton returned high-grade PGM
mineralisation 350m beyond the existing 6.9Moz PdEq JORC Mineral Resource
Estimate ("MRE")
§ Breakthrough for future processing of Panton ore with the following
achievements:
o Flotation repeatability established with consistent metallurgical PGM
average recoveries of 78% at concentrate grades averaging 286g/t PGM(3E)
o Bulk ore sorter test work demonstrated 97% recovery of high-grade PGM
bearing ore and rejection of low grade material and waste
§ Scoping Study is well advanced incorporating the processing achievements,
and assessing the value add of downstream processing as a development option
to produce future high payability, low emission upgraded metal products. The
Company is targeting finalisation and release of the study's findings in H2
2023
§ Secured the right to farm-in to the adjoining and highly prospective
Panton North exploration ground, more than doubling exploration position at
Panton, and adding Copernicus North as a second project
§ Drill planning underway for Q2 2023 to test the shallow BC1 target and
other targets at Panton West
§ The Company remains well funded to complete its planned drilling and the
Scoping Study
Future Metals NL ("Future Metals" or the "Company", ASX | AIM: FME) is pleased
to provide its Quarterly Activities and Cashflow Report for the Quarter ended
31 March 2023 ("Quarter").
Future Metals is the 100% owner of the Panton PGM-Ni Project ("Panton
Project", or "Project"), located 60km north of the town of Halls Creek in the
eastern Kimberley region of Western Australia, a tier one mining jurisdiction.
The Project is situated on three granted mining licences and lies 1km off the
Great North Highway which accesses the Port of Wyndham (see Figure One).
The Panton Project hosts an independent JORC Code (2012) Mineral Resource
Estimate ("MRE"), as announced on 21 June 2022, of 129Mt @ 1.20g/t PGM(3E),
0.19% Ni, 0.04% Cu and 154ppm Co (1.66g/t PdEq) at a cut-off grade of 0.90g/t
PdEq for contained metal of 5.0Moz PGM(3E), 239kt Ni, 48kt Cu and 20kt Co
(6.9Moz PdEq).
The MRE includes a high-grade reef of 25Mt @ 3.57g/t PGM(3E), 0.24% Ni, 0.07%
Cu and 192ppm Co (3.86g/t PdEq) for contained metal of 2.9Moz PGM(3E), 60kt
Ni, 18kt Cu and 5kt Co (3.2Moz PdEq).
PGM-Ni mineralisation occurs within a layered, differentiated mafic-ultramafic
intrusion referred to as the Panton intrusive which is a 12km long and 3km
wide, south-west plunging synclinal intrusion. PGM mineralisation is hosted
within a series of stratiform chromite reefs as well as a surrounding zone of
mineralised dunite within the ultramafic package. The Panton intrusive is also
highly prospective for Ni-Cu-PGM sulphide mineralisation from multiple
magmatic events.
Mr Jardee Kininmonth, Managing Director of Future Metals, commented on the
Quarter:
"Great progress has been made on both the Scoping Study which is assessing the
development options for Future Metals' high-grade PGM resource, as well as our
exciting nickel-sulphide exploration model.
"The metallurgical achievements and processing breakthrough will enhance the
economic outcomes for the Scoping Study, and we are enthused by the potential
upside from incorporating downstream processing into the study programme,
which could set Future Metals apart as a future high-grade, low emissions PGM
producer.
"The Company has also quickly matured the nickel-sulphide exploration model
from concept stage to definitively demonstrating that the Panton Project has
strong potential to host a significant accumulation of Ni-Cu sulphide
mineralisation.
As part of this exploration model, we farmed into the adjoining Panton North
and the nearby Copernicus North tenements which host a number of highly
prospective and untested Ni-Cu sulphide targets including the recently
identified embayment feature (BC1) and Panton West which we are preparing to
drill in Q2 2023."
Figure One | Panton PGM Project Location
Operational Activities
Drilling Results Discussion
The Company completed its 2022 drilling campaign during the Quarter, where it
was testing targets identified from historical drilling, EM surveys, and
gravity and magnetics inversion modelling. The completed drilling successfully
demonstrated a distinct and broad Ni-Cu sulphide enriched zone within the
Panton Intrusive separate to the high-grade reef and the surrounding bulk
mineralisation in the 6.9Moz PdEq MRE.
A total of eight diamond drill holes (PS407-PS414) for approximately 3,275m
were completed, testing for the occurrence of magmatic Ni-Cu-PGM sulphide
mineralisation. All assay results were received during the Quarter. These
results demonstrate that Panton hosts multiple mineralisation styles including
a large sulphide rich system outside of the portion of the deposit hosting the
6.9Moz PdEq JORC MRE.
High-Grade PGM Reef Step Out Intersection
Results from the deep drill hole PS414, 1,328.6m co-funded under the Western
Australian State Government's EIS Scheme, were received during the Quarter.
Intersections demonstrating significant PGM and sulphide mineralisation
include (refer Figure Three):
§ 22.4m @ 1.50 g/t PGM(3E)(1), 0.21% Ni, 155ppm Co and 0.04% Cu from 786m,
including
o Intersection of the high-grade PGM upper reef of 2m @ 6.6 g/t PGM(3E)(1),
0.29% Ni, 153ppm Co, 0.12% Cu from 786m
§ 36m @ 0.86 g/t PGM(3E)(1), 0.23% Ni, 151ppm Co, 0.01% Cu from 850m
§ 19m @ 0.15 g/t PGM(3E)(1), 0.19% Ni, 158ppm Co, 0.11% Cu from 1,053m
This was the first time a drill hole had been drilled through the entire
Panton intrusion and its results demonstrated strong continuity of the
high-grade PGM reef, providing a step out intersection of up to 350m from the
nearest drill hole included in the current MRE.
This provides significant growth potential to the high-grade reef component of
the MRE, comprising 3Moz of the current 6.9Moz PdEq MRE.
Figure Two shows where hole PS414 intersected the high-grade reef, relative to
the closest other intersections included in the current MRE wireframe model.
The Company is currently working on an updated JORC MRE to incorporate a more
detailed geological understanding of the high-grade reefs that has been
informed by recent drilling. This will enable improved mine and process design
to underpin the Scoping Study on the high-grade PGM mineralisation at the
Panton Project. The Company expects that this updated MRE will be
significantly enhanced by the results from hole PS414.
Figure Two | Orthogonal view showing location of PS414 intersection of the
high-grade PGM reef relative to the nearest holes in the NNW and NE
Panton Complex
The 2022 drill programme completed during the Quarter successfully redefined
the Panton Project as an intrusive complex ("Panton Complex") with significant
potential for a nickel-sulphide discovery and will enable the Company to focus
in on the most prospective areas for drilling a potentially large accumulation
of sulphide mineralisation.
The deep drill hole identified at least two discrete phases of magma
intrusions. The upper zone (Unit B) hosting the previously defined reef-style
PGM mineralisation and the newly recognised lower zone (Unit A) hosting
disseminated magmatic sulphide mineralisation.
The identification of two distinct intrusions is significant for advancing
exploration at Panton, which has historically been considered one system, with
this drill hole confirming the dynamic nature of the newly defined Panton
Complex.
In addition, it supports the interpretation that the presence of a large
untested embayment feature (see discussion below) on the northwest margin of
the complex as a high-priority target. It also explains the local anomalous
high-grade Ni-Cu sulphide intercepts in historical drilling and the recently
drilled zones of broad disseminated magmatic sulphide mineralisation in the
northwest area.
Figure Three | Cross Section for Drill Hole PS414
The above observations have been integrated into a model to explain the
sulphide mineralisation potential of Unit A at Panton, as illustrated in
Figure Four.
Figure Four | Nickel Sulphide Emplacement Schematic
1: Emplacement of a hybrid melt (mixture of wallrock sulphide droplets to
blebs, plus primary picritic magma) into the base of the sill
2: Accumulation and pooling of Ni-Cu rich sulphide magma in embayments near
the feeder; remobilisation of sulphides from the top of this pool by
subsequent pulses of turbulent new magma, resulting in sulphide-rich blobs
within the overlying dunite formed by the new magma
3: Lower zone, including sulphide blobs overlying the basal sulphide pool,
freezes; major new magma pulse into sill (using same feeder position) produces
PGM-rich Chromitite layers which are thickest and best mineralised above the
sulphide-rich embayment
4: Folding of the sill resulting in the embayment area appearing as a
thickened zone on the contact
5: Late faulting locally remobilised sulphide blobs
Significant Embayment feature 'sulphide trap' - BC1
During the ongoing review of new and historical geological information the
Company has identified a potential embayment feature on the Panton North
tenement (subject to a farm-in agreement with Octava Minerals Ltd where the
Company has the right to earn 70% interest).
Embayment features can act as 'sulphide traps', providing a confined localised
volume in which sulphide rich magma can settle. This untested embayment
feature was identified along the northwest intrusion contact in multiple
datasets, including magnetics and short wave infra-red imagery. A desktop
review of the surface expression of this embayment area indicates that it has
been subject to increased weathering which in turn can be an indicator of
gossanous material, potentially related to sulphide mineralisation. Historical
stream sediments identified highly anomalous coincident nickel-copper values
on the margin of the interpreted embayment feature ("BC1"). The BC1 target
represents a strike of approximately 1,000m which has not been drill tested
(refer Figure Five).
Figure Five | Plan view showing embayment target ('BC1') and significant
sulphide intercepts
Assay results | Holes PS407 - PS413
Drill holes PS407 to PS413 were primarily targeting large magnetic anomalies
and sulphide mineralisation intersected in historical drilling. All drill
holes demonstrated a distinctive sulphide population that is anomalous
relative to historical drilling along strike in Unit A, which was targeting
the same stratigraphic units. Anomalous intersections included:
§ 83m @ 0.49 g/t PGM(3E), 0.25% Ni, 136ppm Co, 0.04% Cu, 0.24% S from
53m(PS408)
§ 1m @ 0.60 g/t PGM(3E), 0.27% Ni, 0.23% Cu, 141ppm Co, 0.42% S from
84m(PS408)
§ 6m @ 0.07 g/t PGM(3E), 0.21% Ni, 0.12% Cu, 171ppm Co, 0.55% S from
57m(PS409)
§ 10m @ 0.48 g/t PGM(3E), 0.20% Ni, 0.03% Cu, 131ppm Co, 0.62% S from
198m(PS409)
§ 19m @ 0.23 g/t PGM(3E), 0.26% Ni, 158ppm Co, 0.09% Cu, 0.34% S from
240m(PS410)
§ 5m @ 0.15 g/t PGM(3E), 0.21% Ni, 153ppm Co, 0.08% Cu, 0.48% S from
343m(PS410)
§ 11m @ 0.03 g/t PGM(3E), 0.11% Ni, 1149ppm Co, 0.10% Cu, 0.59% S from
146m(PS410)
§ 1m @ 0.97 g/t PGM(3E), 0.25% Ni, 0.30% Cu, 161ppm Co, 0.49% S from
314m(PS410)
§ 53m @ 0.12 g/t PGM(3E), 0.18% Ni, 158ppm Co, 0.10% Cu, 0.44% S from
32m(PS413)
Metallurgical Testwork and Scoping Study Activities
During the Quarter, the Company released an update regarding its metallurgical
test work programmes and Scoping Study activities. The results demonstrated a
significant de-risking for the potential future mining and processing of the
high-grade reef component of the Panton Project's MRE and provided a credible
path towards developing a low capital, high margin PGM-Ni operation. The
Company is currently progressing a Scoping Study which will evaluate multiple
development scenarios, including the production and sale of a bulk Ni-PGM
concentrate and a scenario where the concentrate is further processed using
hydrometallurgical technology to produce upgraded PGM and base metals
products.
Figure Six | Project Delivery Strategy
Pre-concentration via Ore Sorting
Options to de-risk and improve the development economics for the Panton
Project have been investigated through innovation and recent technological
improvements. One such pathway involves the rejection of waste early in the
comminution process via ore sorting.
Ore sorting technology has been used in the PGM and chromite mining industry
for over ten years. The technology classifies and separates individual rocks
by their physical and chemical properties. By removing gangue and low-grade
ore, the size of the crushing, milling and flotation equipment can be
optimised. Reducing the process plant throughput rate while increasing grade
provides direct savings in terms of capital and operating costs. Ore sorting
also reduces the impact of dilution allowing for the use of conventional
mining equipment, further driving down operating costs. Reductions in mining
and process operating costs allows the mining cut-off grade to be optimised
and the viable mining inventory to be potentially increased.
Sighter and bulk test work has been completed with Steinert Sorting Solutions.
The sighter test work involved a three-stage separation process applied to a
mixed feed of chromitite, magnesite and dunite. Greater than 95% chromitite
recovery was achieved during the first pass, using an x-ray transmission
3D-laser combination sort programme ("XRT-3D"), due to the chromitite being
substantially higher in atomic density. 100% of the magnesite was recovered
during the second pass, using both an XRT-3D combination (due to the lower
atomic density of magnesite) and laser brightness (due to the high colour
contrast between magnesite and the other materials).
Following the success of the sighter test work, a bulk test was also
completed. The bulk test work involved compositing separate chromitite and
dunite samples to replicate the expected feed mix from a mine stope. The
chromitite and dunite were crushed and screened into three size fractions;
+25mm, +10mm, and -10mm. Each of these size fractions were assayed prior to
preparation of two composites; -75mm to +25mm and -25mm to +10mm, which were
processed using the same XRT 3D-laser combination sort programme used in the
sighter test work. The fine -10 mm fraction is considered to be below the
capability of the ore sorting units and was not tested.
The bulk ore sort test work validated the sighter test work on multiple size
fractions, demonstrating 96.7% recovery of high-grade ore and rejection of
low-grade and waste, increasing the PGM grade of the potential mill feed by
10.7% and reducing the throughput volume by 12.7%. This represents a very
positive result early on in the test work process.
Table One | Bulk Ore Sorting Test Results
Ore Sorting Products Pt Pd Au Pt, Pd & Au
Recovery g/t Recovery g/t Recovery g/t Recovery g/t Recovery
(%) (%) (%) (%) (%)
Calculated Head Grade (Ore Sorter Feed) 3.49 4.00 0.38 7.87
Total Ore Sorter Accepts 87.3 3.88 96.9 4.44 96.8 0.40 92.5 8.72 96.7
Total Ore Sorter Rejects 12.7 0.85 3.09 1.00 3.18 0.22 7.5 2.07 3.4
Figure Seven | Steinert KSS XT CLI Ore Sorter
*Dimensions and grades are for illustrative purposes only
Figure Eight | Ore Sorting Schema
Flotation Test Work Results
As previously noted in the Company's announcement on 7 July 2021 'Above 80%
PGM Recovery to High Grade PGM Concentrate', flotation test work carried out
in 2015 on Panton chromitite ore achieved a technical breakthrough for the
Panton Project. The best result achieved (test HL1279) was 81.4% recovery
(PGM(3E)) at a 2.5% mass pull for a 272 g/t PGM(3E) concentrate grade with a
rapid 14 minutes of flotation time. Whilst the 2015 test work achieved
dramatic improvements in the flotation performance, repeatability of HL1279
was not established and there was minimal follow up optimisation work.
As detailed in the Company's announcement on 21 June 2022 'Independent
Resource Estimate of 6.9Moz PdEq', the Company undertook further flotation
test work in early 2022 on both low-grade composites (~2.3g/t PGM(3E)) and
high-grade composites (~7.6g/t PGM(3E)), using a single stage
rougher-scavenger test. Results yielded PGM(3E) recoveries of up to 68% and
71% respectively (with higher Pd recovery relative to the Pt recovery) with
concentrate grades of ~130g/t PGM(3E) for the high-grade composite and up to
17g/t PGM(3E) for the low-grade composite.
Following this initial test work, the Company embarked on a systematic
programme of optimisation and variability test work with Independent
Metallurgical Operations Pty Ltd.
Flotation results from this latest programme of optimisation and variability
test work yielded positive results on the high-grade chromitite samples with
consistent PGM(3E) recoveries of 75.7% to 81.4% with concentrate grades from
167 g/t to 387 g/t PGM(3E) with an average of 286g/t PGM(3E). These results
were achieved over six consecutive tests, demonstrating strong repeatability
of the flotation regime. A key factor to these consistent results is
controlling potential through the flotation cycle and ensuring a reducing
environment is maintained. Other physical parameters have also been optimised
such as froth collection rates, number of flotation stages and flotation
retention time. Table Two details these latest flotation results.
Table Two | Optimisation and Variability Flotation Test Programme -
Concentrate Grades
Test Concentrate Grade Head Grade
No.
Mass Pull Pt Pd Au Pt, Pd & Au Pt Pd Au Pt, Pd & Au
% g/t Rec g/t Rec g/t Rec g/t Rec g/t
FT014 2.46 136 77.7 154 74.9 11 65.3 301 75.7 4.31 5.06 0.42 9.79
FT015 2.90 121 80.3 139 78.1 11 68.9 271 78.6 4.38 5.18 0.45 10.01
FT016 1.85 175 78.9 197 75.9 15 68.3 387 76.9 4.09 4.79 0.41 9.29
FT017 2.36 136 78.8 154 75.7 12 67.9 302 76.7 4.08 4.78 0.43 9.29
FT018 3.34 127 82.3 151 81.2 11 74.6 289 81.4 5.13 6.21 0.50 11.84
FT019 4.51 71 78.3 89 77.2 7 70.9 167 77.4 4.11 5.19 0.43 9.73
Average 2.90 128 79.4 147 77.2 11 69.3 286 77.8 4.35 5.20 0.44 9.99
The Company considers the head grade of the flotation tests to be within an
acceptable range of potential mill feed grade when factoring in mined grade of
the Upper Reef following upgrading through ore sorting.
Table Three sets out the range of achieved recoveries, concentrate grades and
head grades for by-products in the flotation tests on chromitite ore samples:
Table Three | By-product Recoveries*
Panton Ni Cu Co* Rh Ir Os
(%) (%) (%) (g/t) (g/t) (g/t)
Head Grade 0.27 - 0.28 0.04 0.03 0.09 - 0.10 0.09 - 0.11 0.12 - 0.13
Recovery (%) 37 - 45 56 - 62 8 - 9 38 - 44 50 - 55 29 - 34
Concentrate Grade 3.8 - 5.5 0.9 - 1.3 0.06 - 0.07 1.4 - 2.0 1.9 - 2.6 1.4 - 2.1
*Only FT017 was assayed for Co
Ongoing Test Work
The results demonstrate that a very high grade PGM(3E) concentrate is
achievable from Panton chromitite ore feed. As a consistent baseline flotation
regime has been established, there is significant potential for further
optimisation through the study process. This includes introducing a cleaner
circuit, concentrate regrind, and further exploratory testing of reagents to
improve recoveries, including the recoveries of base metals in feed. The
Company will continue to test for further improvements, as well as testing the
variability of flotation response from samples throughout the Panton orebody.
Panton's future concentrate will likely be marketed as a bulk Ni-PGM(3E)
concentrate. Additional optimisation, planning and marketing work is required
in relation to the chrome content of the concentrate, given it is a
deleterious element. However, the high PGM(3E) grade of the concentrate is
expected make the potential Panton Ni-PGM(3E) concentrate attractive to
smelters despite the chrome content. Mine planning and blending strategies
will also be utilised to ensure a consistent, valuable Ni-PGM(3E) concentrate
is produced.
Test work has demonstrated that a metallurgical grade chromite concentrate can
be produced from the Panton flotation tails (from chromitite ore) through Wet
High Intensity Magnetic Separation ("WHIMS"). Chromite concentrate represents
a potentially valuable co-product, which is typically sold into the
ferrochrome industry, as input into stainless steel.
The Company plans to continue optimisation and marketing work and assess the
inclusion of a WHIMS circuit in the forthcoming Scoping Study.
Downstream Processing | Hydrometallurgy
A study is underway to assess the potential to further process the high-grade
concentrate utilising a hydrometallurgical process to produce upgraded metal
products. The potential benefits of hydrometallurgical processing include
improved payabilities, reduced logistics costs and significantly less
sensitivity to many elements deleterious to smelters, such as chrome. Such
benefits have resultant benefits for mine planning and mine inventory.
Lifezone Ltd ("Lifezone") has been engaged as a technology partner to further
explore the amenability of utilising their hydrometallurgical technology for
further upgrading of the Panton concentrate. The Lifezone hydromet process
replaces the smelting process, extracting contained metals in concentrate
through hydrometallurgical processes to produce a suite of metals products
suitable for potential direct sale to refiners. Hydrometallurgical processing
has a range of benefits relative to smelting including(1):
§ 65-80% lower capital costs
§ 35-50% lower operating costs
§ 50-85% lower electricity consumption
§ Up to 80% lower CO(2) emissions and no SO(2) emissions
§ Fewer constraints on concentrate quality than smelting
The Company's view is that a low emission upgraded PGM product from Australia
would be highly sought after by potential customers in the hydrogen and
automotive industries, who are sensitive to accumulated emissions through the
supply chain, as well as other ESG considerations.
Panton's high grade PGM(3E) concentrate would allow for a small, low-capital
process plant employing Lifezone's hydromet technology, which would
potentially significantly enhance the economics of the Panton Project.
(1) Kell hydrometallurgical extraction of precious and base metals from
flotation concentrates - Piloting, engineering and implementation advances.
June 2019. K Liddell, M Adams, L Smith
June 2023 Quarter Activities
Ongoing Exploration Activities
The Company continues to build upon its nickel sulphide exploration model and
work towards a discovery of a large, high-grade accumulation of Ni-Cu
sulphides. The 2022 drill programme enabled the Company to validate the
presence of a primary magmatic sulphide system within Panton, reduce the
search space for follow-up exploration and identify a discrete untested target
in BC1, the embayment feature.
Evaluations and preparatory activities are being undertaken across Panton, BC1
and the Panton West prospect for a follow up drill programme currently planned
for Q2 2023.
The drill programme will likely involve shallow Reverse Circulation ("RC")
drilling as a first pass. The Company will provide further details on these
targets in Q2 2023.
Scoping Study Progress
The Company is pleased with the progress made to date, with ore sorting and
flotation test work significantly de-risking the future development of Panton.
The ore sorting results have a material impact on mine design and enable a
reduction in the size of milling and flotation equipment, tailings storage,
electricity requirements and water consumption which will therefore reduce
estimated capital and operating costs. Following positive pre-scoping
assessment and prior test work of Lifezone's hydromet process, the Company is
also assessing the potential of downstream integration as part of its Scoping
Study. Additionally, the Company now has an improved geological model for
Panton which will be used to inform an updated JORC Mineral Resource estimate
to be incorporated into the Scoping Study. Lastly, the Company continues to
progress potential processing pathways for its significant low-grade Resource
and will also incorporate this into its study activities once a metallurgical
solution is in place.
Accordingly, the Company expects an updated Scoping Study, incorporating these
improvements, to be completed in H2 2023.
Corporate
Farm-In and Joint Venture Agreement
The Company executed a Farm-in and Joint Venture Agreement with Octava
Minerals Limited ("Octava") with respect to the right to earn a 70% interest
in its wholly owned Panton North and Copernicus North Ni-Cu-PGM projects in
the East Kimberly region of Western Australia.
Future Metals issued 3.5 million new ordinary shares to Octava, voluntarily
escrowed for 12 months, as upfront consideration. The Company is also, inter
alia, required to make a final payment to Octava of A$200,000 in 12 months
from completion in cash or shares (at Future Metals' sole election).
Financial commentary
The Quarterly Cashflow Report (Appendix 5B) for the period ending 31 March
2023 provides an overview of the Company's financial activities.
The Quarterly Cashflow Report (Appendix 5B) is available at the following
link: http://www.rns-pdf.londonstockexchange.com/rns/7668X_1-2023-4-27.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/7668X_1-2023-4-27.pdf) and
on the Company's website.
The Company held approximately A$3.9 million in cash at the end of the
Quarter.
Expenditure on exploration during the Quarter amounted to approximately A$1.45
million. Expenditure on metallurgical test work and scoping study activities
amounted to approximately A$73k. Payments for administration and corporate
costs amounted to approximately A$675k. This included payments to related
parties and their associates of A$118k, comprising Director fees and
remuneration (including superannuation).
Statement of commitments
The Quarter is covered by the Statement of Commitments outlined in the
Company's ASX Prospectus dated 18 May 2021. A summary of expenditure to date
is outlined in the table below.
Proposed Use of Funds Actual
13 June 2021 to 13 June 2023 (13 June 2021 to
$ 31 March 2023)
$
Exploration & development expenditure
Panton Option consideration 3,000,000 3,000,000
Estimated duty liability 1,755,495 560,415
Drilling of extensions 2,000,000 5,625,061
Metallurgical testwork 500,000 386,682
Process design, mining and development studies 1,000,000 646,151
Other technical studies 500,000 -
Assessment of complementary assets or projects 500,000 -
SUB-TOTAL 9,255,495 10,218,309
Estimated cash expenses of the Australian Offers 1,077,834 1,164,174
Estimated cash costs for readmission to AIM 1,124,334 910,800
Administration costs 2,000,000 4,149,858
Working Capital 768,200 85,964
TOTAL 14,225,863 16,529,105
For additional information please refer to ASX/AIM announcements covered in
this report:
§ 17 January 2023 | Farm-In Agreement Over East Kimberley Ni-Cu-PGE Prospects
§ 17 January 2023 | Proposed issue of securities - FME
§ 19 January 2023 | Quarterly Activities and Cash Flow to 31 December 2023
§ 20 January 2023 | Notification regarding unquoted securities - FME
§ 27 January 2023 | Application for quotation of securities - FME
§ 2 February 2023 | Large Ni-Cu (PGE) Sulphide Zone Identified at Panton
§ 8 February 2023 | Corporate Presentation, AMEC Investor Briefing
§ 13 February 2023 | Mining and Processing Breakthrough at Panton
§ 14 February 2023 | Corporate Presentation, RIU Fremantle
§ 15 March 2023 | Half Year Accounts to 31 December 2022
§ 21 March 2023 | High Grade Mineralisation Intersected in 350m Step Out Hole
For further information, please contact:
Future Metals NL +61 8 9480 0414
Jardee Kininmonth info@future-metals.com.au (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/Soman Thakran
FlowComms (UK IR/PR) +44 (0) 789 167 7441
Sasha Sethi
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as is forms part of United Kingdom domestic law pursuant to
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.
Competent Person's Statement
The information in this announcement that relates to Exploration Results is
based on, and fairly represents, information compiled by Ms Barbara Duggan,
who is a Member of the Australasian Institute of Mining and Metallurgy and the
Australian Institute of Geoscientists. Ms Duggan is the Company's Principal
Geologist and has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity she
is undertaking to qualify as a competent person as defined in the 2012 Edition
of the "Australasian Code for reporting of Exploration Results, Exploration
Targets, Mineral Resources and Ore Reserves" (JORC Code). Ms Duggan consents
to the inclusion in this announcement of the matters based upon her
information in the form and context in which it appears.
The information in this announcement that relates to Mineral Resources is
based on, and fairly represents, information compiled by Mr Brian Wolfe, who
is a Member of the Australian Institute of Geoscientists. Mr Wolfe is an
external consultant to the Company and is a full time employee of
International Resource Solutions Pty Ltd, a specialist geoscience consultancy.
Mr Wolfe has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity he
is undertaking to qualify as a competent person as defined in the 2012 Edition
of the "Australasian Code for reporting of Exploration Results, Exploration
Targets, Mineral Resources and Ore Reserves" (JORC Code). Mr Wolfe consents to
the inclusion in this announcement of the matters based upon his information
in the form and context in which it appears.
Notes to Editors:
About the Panton PGM-Ni Project
The 100% owned Panton PGM-Ni Project is located 60kms north of the town of
Halls Creek in the eastern Kimberly region of Western Australia, a tier one
mining jurisdiction. The project is located on three granted mining licences
and situated just 1km off the Great North Highway which accesses the Port of
Wyndham (refer to Figures One and Nine).
The Project hosts an independent JORC Code (2012) MRE of 129Mt @ 1.20g/t
PGM(3E)(1), 0.19% Ni, 0.04% Cu and 154ppm Co (1.66g/t PdEq) at a cut-off grade
of 0.90g/t PdEq for contained metal of 5.0Moz PGM(3E)(1), 239kt Ni, 48kt Cu
and 20kt Co (6.9Moz PdEq). The MRE includes a high-grade reef of 25Mt @
3.57g/t PGM(3E)(1), 0.24% Ni, 0.07% Cu and 192ppm Co (3.86g/t PdEq) for
contained metal of 2.9Moz PGM(3E)(1), 60kt Ni, 18kt Cu and 5kt Co (3.2Moz
PdEq).
PGM-Ni mineralisation occurs within a layered, differentiated mafic-ultramafic
intrusion referred to as the Panton intrusive which is a 12km long and 3km
wide, south-west plunging synclinal intrusion. PGM mineralisation is hosted
within a series of stratiform chromite reefs as well as a surrounding zone of
mineralised dunite within the ultramafic package.
Figure Nine | Panton PGM Project Location
About Platinum Group Metals (PGMs)
PGMs are a group of six precious metals being platinum (Pt), palladium (Pd),
iridium (Ir), osmium (Os), rhodium (Rh), and ruthenium (Ru). Exceptionally
rare, they have similar physical and chemical properties and tend to occur, in
varying proportions, together in the same geological deposit. The usefulness
of PGMs is determined by their unique and specific shared chemical and
physical properties.
PGMs have many desirable properties and as such have a wide variety of
applications. Most notably, they are used as auto-catalysts (pollution control
devices for ICE vehicles), but are also used in jewellery, electronics,
hydrogen production / purification and in hydrogen fuel cells. The unique
properties of PGMs help convert harmful exhaust pollutant emissions to
harmless compounds, improving air quality and thereby enhancing health and
wellbeing.
Appendix One | Exploration and Mining Permits
Exploration & Mining Permits changes during the Quarter
Project Location Tenement Interest at beginning of Quarter Interest at end of Quarter
No changes during the Quarter
Farm-In / Farm Out Agreement changes during the Quarter(^)
Joint Venture Project Location Tenement Interest at beginning of Quarter Interest at end of Quarter
Octava Minerals Ltd Panton North Western Australia E80/5455 - -
Octava Minerals Ltd Copernicus North Western Australia E80/5459 - -
^ During the Quarter the Company executed a farm-in and joint venture
agreement with Octava Minerals Ltd over two tenements, one of which adjoins
the Panton Project to the north. Future Metals may earn up to 70% in the two
tenements. Details of the transaction can be found in the announcement
'Farm-In Agreement Over East Kimberley Ni-Cu-PGE Prospects' released on 17
January 2023.
Interests in Mining & Exploration Permits & Joint Ventures at 31 March
2023
Project Location Tenement Area Interest at end of Quarter
Panton PGM-Ni Project Western Australia M80/103 8.6km(2) 100%
M80/104 5.7km(2) 100%
M80/105 8.3km(2) 100%
Panton North Western Australia E80/5455 8 BL -
Copernicus North Western Australia E80/5459 2 BL -
Appendix Two | Panton Mineral Resource Estimate (JORC Code 2012)(2)
Resource Category Mass Grade Contained Metal
(Mt) Pd Pt Au PGM(3E)(1) (g/t) Ni Cu Co PdEq(2) Pd Pt Au PGM(3E) (Koz) Ni Cu Co PdEq(2)
(g/t) (g/t) (g/t) (%) (%) (ppm) (g/t) (Koz) (Koz) (Koz) (kt) (kt) (kt) (Koz)
Reef Indicated 7.9 1.99 1.87 0.31 4.16 0.24 0.07 190 4.39 508 476 78 1,062 19.1 5.2 1.5 1,120
Inferred 17.6 1.59 1.49 0.22 3.30 0.23 0.07 193 3.63 895 842 123 1,859 41.1 13.1 3.4 2,046
Subtotal 25.4 1.71 1.61 0.24 3.57 0.24 0.07 192 3.86 1,403 1,318 201 2,922 60.3 18.2 4.9 3,166
Dunite Inferred 103.4 0.31 0.25 0.07 0.62 0.17 0.03 145 1.12 1,020 825 225 2,069 179.6 30.2 15.0 3,712
Subtotal 103.4 0.31 0.25 0.07 0.62 0.17 0.03 145 1.12 1,020 825 225 2,069 179.6 30.2 15.0 3,712
All Indicated 7.9 1.99 1.87 0.31 4.16 0.24 0.07 190 4.39 508 476 78 1,062 19.1 5.2 1.5 1,120
Inferred 121 0.49 0.43 0.09 1.01 0.18 0.04 152 1.48 1,915 1,667 347 3,929 219.7 43.2 18.4 5,758
Total 129 0.58 0.52 0.10 1.20 0.19 0.04 154 1.66 2,423 2,143 425 4,991 238.8 48.4 19.9 6,879
( )
(Notes)
(1) Please refer to the paragraph below for palladium equivalent (PdEq)
calculation
(2) No cut-off grade has been applied to reef mineralisation and a cut-off of
0.9g/t PdEq has been applied to the dunite mineralisation
(1) PGM(3E) = Palladium (Pd) + Platinum (Pt) + Gold (Au)
(2) Metal equivalents were calculated according to the follow formulae:
§ Reef: PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.76471 x Pt(g/t) +
0.875 x Au(g/t) +1.90394 x Ni(%) + 1.38936 x Cu(%) + 8.23 x Co(%)
§ Dunite: PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.76471 x Pt(g/t) +
0.933 x Au(g/t) +2.03087 x Ni(%) + 1.481990 x Cu(%) + 8.80 x Co(%)
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