REG - Future Metals NL - Quarterly Activities Report

Future Metals NLAnnouncement

31/10/2024 09:30

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RNS Number : 4099K  Future Metals NL  31 October 2024

31 October 2024

Future Metals NL

Quarterly Activities Report for quarter ended

30 September 2024

 

Future Metals NL ("Future Metals" or the "Company", ASX | AIM: FME) is pleased
to announce its Quarterly Activities and Cashflow Report for the quarter ended
30 September 2024 (the "Quarter").

Highlights

·        Completion of heritage surveys, ground gravity activities and
maiden drilling at Eileen, with four holes drilled for 1,195.2m

·        Drilling at the Eileen Bore Prospect, co-funded by a WA
Government EIS grant, was testing continuity of mineralisation in historical
drilling and depth extensions. Drilling successfully intersected 122.7m of
variably mineralised ultramafic, including a 39m zone of 25-30% blebby to
disseminated chalcopyrite-pyrrhotite mineralisation

·        Drilling at a previously untested target ('Target 2')
intersected over 200m of prospective ultramafic in EBDD003 with multiple zones
of disseminated to blebby sulphides including:

o  4.7m of 10-25% chalcopyrite, pyrrhotite, pentlandite from 127.6m; and

o  7.8m of 10-15% chalcopyrite, pyrrhotite, pentlandite from 255.5m

·        Future Metals is undertaking ongoing review of potential
acquisition opportunities for resource projects including assets within
strategic proximity to the Panton PGM Project

·        Completion of Option Offer to eligible holders for one new
option at $0.06 per share, with three-year expiry

·

Continued prudent financial management including reduction in corporate costs

Figure One | Future Metals East Kimberley Projects, the Panton Project &
Alice Downs Corridor

 

Alice Downs Corridor Exploration

During the Quarter, Future Metals received heritage survey approval to allow
the Company's maiden drilling at the 'Eileen Bore Prospect' and the adjacent
previously undrilled 'Target 2', within the Alice Downs Corridor. A total of
four diamond holes were drilled for 1,195.2m (completed post end of Quarter),
co-funded by a recent EIS grant. Two diamond holes (EBDD001 and EBDD002) were
drilled at Eileen Bore to test for extensions and confirm continuity of wide
zones of copper & nickel mineralisation in historic drilling. A further
two diamond holes (EBDD003 and EBDD004) were drilled at Target 2 as a first
pass test of surface anomalism.

The Alice Downs Corridor targets are located within a 20km radius of the
Company's 100% owned Panton Project in the highly prospective East Kimberley
region of Western Australia. Broad zones of disseminated and net-textured
copper and nickel sulphides occur within multiple host intrusions and are
comprised of chalcopyrite, pyrrhotite, pentlandite and pyrite. The
historically mined Copernicus deposit is one such example.

The main focus of historical drilling has been on the near-surface
mineralisation at Eileen Bore.

 

Photo One | Topdrill at the first hole for Eileen Bore drilling

Eileen Bore Prospect | Drilling

The Eileen Bore Prospect is an advanced exploration target with historical
third-party drilling confirming wide zones of consistent Cu-Ni-PGM
mineralisation from surface along a known strike of approximately 300m.
Mineralisation remains open down dip and at depth, with mineralisation only
tested to 96m vertical below surface.

 

This historical drilling confirms a disseminated Cu-Ni-PGM magmatic sulphide
body within a serpentinsed pyroxenite host. Multiple historic holes have ended
in mineralisation and modelling suggests that mineralisation is focused within
a synformal fold axis and is plunging to the north-northwest.  This
interpreted orientation remains open with scope for significant additional
mineralisation.

Historical drilling at the Eileen Bore Prospect returned wide zones of
mineralisation, including:

·    120m @ 0.73% Cu, 0.29% Ni & 0.86g/t PGM(3E) from 0m (EOH) ((EBRC
010))

o  Incl. 16m @ 1.0% Cu, 0.36% Ni & 0.99g/t PGM(3E) from 100m

·    96m @ 0.70% Cu, 0.29% Ni & 0.78g/t PGM(3E) from 24m (EOH) ((EBRC
003))

o  Incl. 10m @ 1.08% Cu, 0.34% Ni & 1.04g/t PGM(3E) from 56m

The Company drilled hole EBDD002 between historical holes EBRC010 and EBRC003
to confirm historical results, test the continuity of mineralisation and to
test the true width of mineralisation given both historical holes EBRC010 and
EBRC003 ended in mineralisation.

EBDD002 intersected a 122.7m zone of varying sulphide mineralisation from
36.7m, with a 39m zone of 25-30% disseminated chalcopyrite and pyrrhotite from
79.9m.  This zone is chalcopyrite dominant, with remobilised pyrrhotite and
pentlandite veins present.

EBDD002 is located approximately 30m from historical holes EBRC010 and
EBRC003, demonstrating potential for continuity of mineralisation across a
broad area of the Eileen Bore Prospect.

The drilling at Eileen Bore has confirmed that the mineralisation is hosted in
a similar lithology to the Copernicus Deposit, consisting of serpentinsed
pyroxenite with varying percentages of interstitial blebby to disseminated
pyrrhotite-chalcopyrite ± pentlandite.

 

Photo Two | Chalcopyrite dominant mineralisation in EBDD002*

 

Target 2 | Drilling

Target 2, located approximately 1km northeast of Eileen Bore, is an area that
has never seen previous drilling and is supported by magmatic
chalcopyrite-pyrrhotite mineralisation identified in petrography of peridotite
rock chips, and associated Ni-Cu, PGE and Au soil anomalism.

Drilling at Target 2 has intersected over 200m of prospective ultramafic, with
multiple zones of disseminated to blebby magmatic sulphides. Of particular
interest are a 4.7m intersection of 10-25% chalcopyrite, pyrrhotite,
pentlandite from 127.6m and a 7.8m intersection of 10-15% pyrrhotite,
chalcopyrite, pentlandite from 255.5m which indicate variable zones of
sulphide mineralisation within the 200m interval (refer Photo Three).

Similar to Eileen Bore, mineralisation intersected at Target 2 is hosted in a
similar lithology unit as the Copernicus Deposit.

Photo Three | A: Pyrrhotite-pentlandite-chalcopyrite mineralisation in
EBDD003, B: Chalcopyrite dominant mineralisation in EBDD002, C:
Pyrrhotite-pentlandite stringers in EBDD002*

* Visual estimates of mineral abundance should never be considered a proxy or
substitute for laboratory analyses where concentrations or grades are the
factor of principal economic interest. Visual estimates also potentially
provide no information regarding impurities or deleterious physical properties
relevant to valuations.

Logging of drill core is being completed and samples are being prepared for
assay submission.   Select prospective samples, based on visual
observations, will be submitted for expedited analysis. The Company will
report assays as they become available.

 

Ground Gravity

During the Quarter, Future Metals undertook a ground gravity survey which
commenced in the Alice Downs Corridor mid-September and included the Octava
Minerals JV tenement E80/5459 (Palamino).  Once the survey in the Alice Downs
Corridor is completed, the crew will complete the ground gravity survey at
Panton North (E80/5455, Octava Minerals JV Tenement).

Photo Four | Traditional owners performing "Muntha" to appease the
supernatural generational spirits so they will not harm the workers

At Panton North, the ground gravity data will be used to model the northern
portions of the Panton Complex. Within the Alice Down Corridor Project, the
data will assist in targeting Ni-Cu-PGE ultramafic bodies similar to the
Copernicus Deposit.

Project Generation

The Company continues to review and undertake due diligence on resource assets
which complement the development and exploration strategy of Future Metals at
the Panton Project and the Eileen Bore Cu-Ni-PGM Project.

The Company will keep investors informed of any material developments in
regard to new project opportunities if and when they arise, however there is
no guarantee of any resulting transactions.

Corporate

Option Offer

During the Quarter the Company completed the Option Offer, allowing eligible
holders to subscribe for one new option for every one FMEO ASX-listed option
held at an issue price of 0.025 cents per new option, raising a nominal
A$40,000 (before costs). The ASX listed FMEO options had previously expired on
11 June 2024. Each new option is exercisable at a price of 6.0 cents per share
and expires three years from their date of issue.

 

Cost Rationalisation

The Company continues to progress the reduction in discretionary corporate
expenditure to reduce overheads and maintain cash during the current period of
low PGM prices. During the Quarter Future Metals announced the transition of
the Company's Executive Chair, Patrick Walta, to a part time role. This
includes a reduction in executive service fees from $30,000 per month to
$5,000 per month.

Financial Commentary

The Company held approximately A$1.69m in cash at the end of the Quarter.

Exploration and project development expenditure during the Quarter amounted to
approximately A$279k. Payments for administration and corporate costs amounted
to approximately A$367k and included significant one-off annual costs
including audit fees (A$29k), insurance renewals (A$52k) and ASX listing fees
(A$56k). Also included in corporate costs were payments to related parties and
their associates of A$54k, comprising Director fees and remuneration
(including superannuation). The Quarterly Cashflow Report (Appendix 5B) for
the period ended 30 September 2024 provides an overview of the Company's
financial activities.

The Quarterly Cashflow Report (Appendix 5B) is available at the following
link: http://www.rns-pdf.londonstockexchange.com/rns/4099K_1-2024-10-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4099K_1-2024-10-31.pdf) and on
the Company's website.

For additional information please refer to the ASX/AIM announcements covered
in this report:

30 October 2024                        Copper Nickel
Sulphide Intercepts in Exploration - Revised

9 October 2024                         Drilling
Underway at Eileen Bore

16 September 2024                    Heritage Surveys
Completed at Eileen Bore

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 any Competent Person's findings are presented
have not been materially modified from the original market announcements.

 

For further information, please contact:

 Future Metals NL

                                            +61 8 9480 0414
 Patrick Walta                              info@future-metals.com.au (mailto:info@future-metals.com.au)
 Strand Hanson Limited (Nominated Adviser)  +44 (0) 207 409 3494
 James Bellman/Rob Patrick

 

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
 Nil

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  Palamino      Western Australia  E80/5459  -                                 -

Future Metals may earn up to 70% in the two tenements listed above. 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 30
September 2024

 

 Project                        Location           Tenement  Area     Interest at end of Quarter
 Panton PGM-Ni Project          Western Australia  M80/103   8.6km2   100%

                                                   M80/104   5.7km2   100%
                                                   M80/105   8.3km2   100%
 Panton North (OCT JV)          Western Australia  E80/5455  8 BL     -
 Alice Downs Corridor (OCT JV)  Western Australia  E80/5459  2 BL     -
 Alice Downs Corridor           Western Australia  E80/4922  1BL      100%
 Alice Downs Corridor           Western Australia  E80/4923  2BL      100%
 Alice Downs Corridor           Western Australia  E80/5056  10BL     100%

 

 

 

 

 

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