REG - Future Metals NL - Quarterly Activities and Cashflow Report
29/04/2022 07:00
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RNS Number : 7673J Future Metals NL 29 April 2022
Quarterly Activities and Cashflow Report
for the period ended 31 March 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 31 March 2022
(the "March Quarter").
Highlights
Panton PGM Project
§ Assay results received for eight resource definition holes, all
demonstrating significant mineralisation over broad, shallow intercepts
including (at a 0.5g/t PGM((3E)) cut-off, maximum 4m internal
dilution) (refer to Table One and Appendix Two for full details):
· 20.6m @ 2.14g/t PdEq(2) (1.79 g/t PGM3E(1) & 0.20% Ni) from
39m (PS398)
· 18.27m @ 1.95 g/t PdEq(2) (1.58 g/t PGM3E(1) & 0.20% Ni)
from 74m (PS394)
· 16m @ 1.56 g/t PdEq(2) (1.17 g/t PGM3E(1) & 0.19% Ni) from
23m (PS395)
· 19.2m @ 1.50 g/t PdEq(2) (1.09 g/t PGM3E(1) & 0.19% Ni)
from 34m (PS393)
· 32.88m @ 1.72 g/t PdEq(2) (1.33 g/t PGM3E(1) & 0.19% Ni)
from 28.12m (PS402)
§ Assay results received from 11 historical, previously unsampled, drill
holes confirmed that the mineralisation width at Panton exceeds 50 metres
along the drilled 3.5km strike. Notable intercepts include (at a 0.5g/t
PGM((3E)) cut-off, maximum 4m internal dilution) (refer to Table One and
Appendix Two for full details):
· 53.3m @ 1.74 g/t PdEq(2) (1.29 g/t PGM3E(1) & 0.22% Ni)
from 80m (PS177)
· 12m @ 1.41 g/t PdEq(2) (0.94 g/t PGM3E(1) & 0.22% Ni)
from 142m (PS215)
· 10m @ 1.29 g/t PdEq(2) (0.92 g/t PGM3E(1) & 0.15% Ni)
from 76m (PS178)
§ All historical holes returned significant intercepts of mineralisation
when applying an unconstrained PdEq cut-off grade of 0.5g/t, intercepts
included:
· 55.3m @ 1.70 g/t PdEq(2) (1.26 g/t PGM3E(1) & 0.22% Ni)
from 78m (PS177)
o inc. 7.5m @ 4.11 g/t PdEq(2) from 80.5m
· 86m @ 1.16 g/t PdEq(2) (0.74 g/t PGM3E(1) & 0.18% Ni)
from 33m (PS143)
· 60.5m @ 1.15 g/t PdEq(2) (0.70 g/t PGM3E(1) & 0.18% Ni)
from 2.2m (PS174)
o inc. 4.9m @ 2.56 g/t PdEq(2) from 17.1m
· 56.5m @ 1.18 g/t PdEq(2) (0.73 g/t PGM3E(1) & 0.19% Ni)
from 6.5m (PS185)
§ Review underway of geophysical and geological data accumulated over the
30+ years of work completed at Panton
§ Initial sighter work and detailed review of all metallurgical information
from Panton's prior owners has been completed. The Company is adapting the
test work regime to the anticipated ore feed of the bulk tonnage strategy,
which includes both physical separation and flotation test work. Review of
hydrometallurgical information is also underway
§ An updated JORC Mineral Resource Estimate ("MRE") remains on track for
the second quarter that will encompass shallow, bulk PGM-Ni mineralisation up
to 50 metres in thickness, that importantly sits outside of the current MRE
(refer to the Company's announcements dated 17 February 2022, 8 March 2022, 4
April 2022 and 22 April 2022)
Corporate
§ In anticipation of the Company rapidly advancing the Panton project
following the completion of the updated MRE, a number of key appointments were
made: Mr Jardee Kininmonth - CEO, Mr Brian Talbot - Lead Technical Adviser and
Mr Andrew Shepherd GM - Project Development
§ Cash position of approximately A$4.3 million as at 31 March 2022
(1) PGM3E = Palladium (Pd) + Platinum (Pt) + Gold (Au)
(2) PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.76471xPt(g/t) +
0.875xAu(g/t) + 1.90394xNi(%) + 1.38936xCu(%) + 8.23xCo(%)
(3) PGM6E = Palladium (Pd) + Platinum (Pt) + Rhodium (Rh) + Ruthenium (Ru) +
Osmium (Os) + Iridium (Ir)
Panton PGM Project
The 100% owned Panton PGM project is located 300km south of the industrial
centre of Kununurra in the eastern Kimberly region of Western Australia, a
tier one mining jurisdiction (please refer to Figure One).
Panton has access to all requisite infrastructure being 1km off the Great
Northern Highway, the port of Wyndham 300km north; potential to access the
Lake Argyle hydro scheme; sealed airstrip 60km south at Halls Creek; and
multiple other mining operations within 150km of the Panton PGM Project.
Panton is held under three granted Mining Leases (M80/103, M80/104 and
M80/105) covering an area of approximately 23km(2). Past exploration and
drilling, predominantly undertaken by Platinum Australia Ltd in the early
2000s, resulted in the delineation of the current Mineral Resource Estimate
("MRE") for the Panton deposit undertaken by Cube Consulting Pty Ltd ("Cube")
in April 2003. In August 2015, Cube reviewed and re-reported the MRE in
accordance with the Australasian Code for Reporting of Mineral Resources and
Ore Reserves 2012 ("JORC 2012").
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(http://www.rns-pdf.londonstockexchange.com/rns/7673J_1-2022-4-28.pdf)
Figure One | Panton Location
The current Panton MRE is 14.32Mt @ 4.89g/t PGM(6E)(3), 0.31g/t Au and 0.27%
Ni (please refer to Table One). The Panton mineralisation occurs within a
layered, differentiated mafic-ultramafic intrusion referred to as the Panton
intrusive which is a 10km long and 3km wide, south-west plunging synclinal
intrusion. The Panton MRE is domained into the A, B, C and D Blocks (refer to
Figures Two and Three).
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(http://www.rns-pdf.londonstockexchange.com/rns/7673J_1-2022-4-28.pdf)
Table One | Panton JORC 2012 MRE
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(http://www.rns-pdf.londonstockexchange.com/rns/7673J_1-2022-4-28.pdf)
Figure Two | Panton Geology Showing the A, B, C and D Blocks
March Quarter Activity
Drilling | Exploration Overview
As previously reported, the Company completed approximately 6,000m of diamond
core drilling at the Company's 100% owned Panton PGM Project. The programme
was designed to:
§ provide samples for further metallurgical test work;
§ test continuity and depth extensions to the existing MRE;
§ test the potential for defining a much larger and shallower mineralised
zone at lower cut-off grades; and
§ test parallel zones of highly anomalous PGM at surface (i.e. the Northern
Anomaly)
The Company completed 27 drill holes with 8 holes drilled to provide
metallurgical samples and 19 holes drilled as exploration holes with assay
results from the exploration holes received during the Quarter and detailed
below.
The Company expects to progressively report assay results from a further 33
drill holes (comprising 23 historical holes not previously completely sampled)
during May 2022.
Once received, all new assay data will be incorporated into a new MRE for the
Panton PGM Project. The planned updated MRE will take into consideration
shallow, bulk PGM-Ni mineralisation that sits outside of the current MRE
(refer to the announcement of 8 December 2021).
Drill Results
A total of 19 exploration holes were drilled as part of the Company's 6,000m
diamond core drilling programme. Assay results for eight of the 19 exploration
holes drilled have been received and confirm broader widths of shallow PGM
mineralisation than modelled in the current 2.4Moz MRE (refer to Appendix
One).
§ 20.6m @ 2.14g/t PdEq(2) (1.79 g/t PGM3E(1) & 0.20% Ni) from 39m
(PS398)
§ 18.27m @ 1.95 g/t PdEq(2) (1.58 g/t PGM3E(1) & 0.20% Ni) from 74m
(PS394)
§ 16m @ 1.56 g/t PdEq(2) (1.17 g/t PGM3E(1) & 0.19% Ni) from 23m
(PS395)
§ 19.2m @ 1.50 g/t PdEq(2) (1.09 g/t PGM3E(1) & 0.19% Ni) from 34m
(PS393)
§ 32.88m @ 1.72 g/t PdEq(2) (1.33 g/t PGM3E(1) & 0.19% Ni) from 28.12m
(PS402)
Drill hole PS400 returned an unconstrained bulk intersection of 140.8m @
1.07g/t PdEq(3) from 28m down hole including a broad zone of sulphide
mineralisation and included intercepts (at a 0.5g/t PGM(3E) cut-off, maximum
4m internal dilution) of:
§ 39.48m @ 1.20 g/t PdEq(2) (0.81 g/t PGM3E(1) & 0.17% Ni) from 37.1m
§ 25.66m @ 1.17 g/t PdEq(2) (0.74 g/t PGM3E(1) & 0.19% Ni) from 104.34m
§ 12.2m @ 1.15g/t PdEq(2) (0.66 g/t PGM3E(1) & 0.18% Ni) from 135.4m
Unconstrained intersections within the zone of sulphide mineralisation from
drill hole PS400 included intercepts of:
§ 34.05m @ 0.16 g/t Au + 0.14% Cu + 0.17% Ni from 208.7m
§ 18.3m @ 0.08 g/t Au + 0.13% Cu + 0.16% Ni from 266.5m
Drill hole PS398 returned broad widths of shallow PGM and nickel
mineralisation, including:
§ 20.6m @ 2.14g/t PdEq(2) (1.79 g/t PGM3E(1) & 0.20% Ni) from 39m
§ 11m @ 1.12 g/t PdEq(2) (0.72 g/t PGM3E(1) & 0.15% Ni) from 64m
§ 30.6m @ 1.21 g/t PdEq(2) (0.75 g/t PGM3E(1) & 0.21% Ni) from 83m
Drill hole PS402 returned an unconstrained bulk intersection of 150.8m @
1.18g/t PdEq(3) from 8m down hole and notable intercepts (at a 0.5g/t
PGM((3E)) cut-off, maximum 4m internal dilution) of (refer to Table One and
Appendix Two for full details):
§ 32.88m @ 1.72 g/t PdEq(2) (1.33 g/t PGM3E(1) & 0.19% Ni) from 28.12m
§ 22.37m @ 1.36 g/t PdEq(2) (1 g/t PGM3E(1) & 0.16% Ni) from 66.76m
§ 12.1m @ 1.45 g/t PdEq(2) (1.05 g/t PGM3E(1) & 0.20% Ni) from 130.9m
Drill hole PS397 also returned broad widths of shallow PGM and nickel
mineralisation, with an unconstrained bulk intersection of 119.78m @ 1.06g/t
PdEq(2) from surface including constrained intercepts of (refer to Table One
and Appendix Two for full details):
§ 37.1m @ 1.32g/t PdEq(2) (0.95 g/t PGM3E(1) & 0.16% Ni) from 8m
§ 27.8m @ 1.25g/t PdEq(2) (0.80 g/t PGM3E(1) & 0.21% Ni) from 59.2m
Assays for the remaining holes submitted to the laboratory that remain
outstanding are expected to be reported in May 2022 which will then enable
modelling of an updated MRE based on the shallow, bulk tonnage mineralisation
at Panton.
Assay results from these holes are set out in Table One below (refer to the
Company's announcements of 17 February 2022, 8 March 2022 and 4 April 2022):
Hole From (m) To Interval (m) Pd (g/t) Pt Au (g/t) PGM3E(1) (g/t) Ni Cu Co (pm) PdEq(2) (g/t)
(m) (g/t) (%) (%)
PS393 8 10.6 2.6 1.18 1.01 0.28 2.46 0.23 0.04 157 2.8
PS393 18.8 21.1 2.3 0.45 0.14 0.02 0.61 0.18 0.06 154 1.05
PS393 34 53.2 19.2 0.51 0.47 0.11 1.09 0.19 0.03 156 1.5
PS393 61 73 12 0.37 0.32 0.11 0.8 0.14 0.05 154 1.18
PS393 89 119.48 30.48 0.41 0.27 0.04 0.72 0.21 0.01 150 1.19
PS393 125.5 129.4 3.9 0.24 139 0.05 0.43 0.13 0.04 173 0.85
PS394 30 31 1 0.37 0.14 0.01 0.52 0.17 0 150 0.94
PS394 45.1 47.57 2.47 0.99 0.77 0.06 1.83 0.15 0.02 120 2.04
PS394 73.9 92.17 18.27 0.72 0.68 0.17 1.58 0.2 0.04 157 1.95
PS394 101 113 12 0.35 0.33 0.08 0.76 0.14 0.04 147 1.11
PS394 125 158.55 33.55 0.36 0.25 0.02 0.64 0.2 0 141 1.08
PS394 164 165.1 1.1 0.36 0.26 0.04 0.65 0.18 0.18 180 1.13
PS395 23 39 16 0.58 0.5 0.09 1.17 0.19 0.02 150 1.56
PS395 44 56.6 12.6 0.38 0.36 0.11 0.85 0.14 0.03 143 1.19
PS395 75 82.7 7.7 0.46 0.36 0.03 0.85 0.2 0.01 146 1.26
PS395 88 113.5 25.5 0.37 0.25 0.02 0.64 0.21 0.01 139 1.11
PS395 117.5 126 8.5 0.25 0.16 0.039 0.45 0.14 0.03 160 0.84
PS396 56.3 60.6 4.3 0.36 0.14 0.02 0.52 0.16 0.00 140 0.91
PS396 65 86 21 0.58 0.54 0.03 1.15 0.18 0.01 144 1.48
PS396 91 103 12 0.41 0.42 0.10 0.93 0.15 0.04 154 1.29
PS396 116 154.7 38.7 0.46 0.32 0.02 0.80 0.21 0.01 142 1.25
PS396 159 170 11 0.22 0.13 0.03 0.37 0.14 0.03 158 0.78
PS397 0 2.4 2.4 0.76 0.78 0.22 1.76 0.20 0.05 236 2.2
PS397 8 45.1 37.1 0.43 0.40 0.12 0.95 0.16 0.04 144 1.32
PS397 59.2 87 27.8 0.47 0.31 0.04 0.80 0.21 0.01 147 1.25
PS397 102 104.52 2.52 0.42 0.22 0.04 0.68 0.12 0.04 183 1.05
PS398 39 59.6 20.6 0.75 0.86 0.17 1.79 0.2 0.03 157 2.14
PS398 64 75 11 0.34 0.28 0.09 0.72 0.15 0.04 158 1.12
PS398 83 113.6 30.6 0.42 0.29 0.03 0.75 0.21 0.01 150 1.21
PS398 118.6 121.5 2.9 0.29 0.16 0.02 0.48 0.2 0.02 167 0.97
PS398 126 127 1 0.43 0.21 0.18 0.54 0.1 0.25 170 1.06
PS398 134.6 135.85 1.25 0.4 0.18 0.05 0.63 0.12 0.05 171 1.02
PS398 187 196.6 9.6 0.31 0.16 0.06 0.53 0.09 0.1 163 0.92
PS400 37.1 76.58 39.48 0.37 0.35 0.09 0.81 0.17 0.03 143 1.20
PS400 90.65 101.4 10.75 0.35 0.31 0.02 0.68 0.19 0.01 140 1.08
PS400 104.34 130 25.66 0.44 0.28 0.02 0.74 0.19 0.02 137 1.17
PS400 135.4 147.6 12.2 0.38 0.21 0.07 0.66 0.18 0.05 163 1.15
PS402 28.12 61 32.88 0.65 0.56 0.13 1.33 0.19 0.04 147 1.72
PS402 66.76 89.13 22.37 0.45 0.43 0.12 1.00 0.16 0.04 156 1.36
PS402 113 126 13 0.40 0.35 0.02 0.77 0.20 0.01 145 1.19
PS402 130.9 143 12.1 0.61 0.42 0.02 1.05 0.20 0.01 134 1.45
PS402 149 157 8 0.58 0.36 0.01 0.95 0.21 0.00 148 1.39
Table Two | Exploration Drilling Assay Results
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Figure Three | Future Metals' Exploration Drilling (PS397) - Panton Cross
Section
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(http://www.rns-pdf.londonstockexchange.com/rns/7673J_1-2022-4-28.pdf)
Figure Four | Future Metals' Exploration Drilling (PS402) - Panton Cross
Section
Sampling of Historical Unsampled Drill Holes
As previously reported the Company commenced a review of the historical
drilling undertaken at Panton consisting of 377 holes for 69,292 metres.
A review of the assay results for those holes that were drilled and sampled
through the Upper Reef footwall demonstrates substantial bulk PGM-Ni
mineralisation, outside of the current MRE. There are widths of up to 50m in
the mineralised footwall dunite that has not been considered in the MRE.
In the past, drill holes were often terminated once the hole reached the
'Upper Reef' or the 'Middle Reef' and were not drilled through the entire
prospective footwall horizon to the 'Lower Reef'. Several drill holes only
had samples and assays taken within the visible chromitite in the Upper and
Middle Reef and were not sampled between or below in the host dunite rock.
Following the review of historical drilling, the Company identified historical
drill holes that were not sampled and assayed through the mineralised footwall
dunite. A total of 33 historical drill holes were identified and then cut and
sampled for submission to the laboratory for assay.
Subsequent to Quarter end, the company announced 11 drill hole assays had been
received and continue to confirm much broader widths of shallow PGM
mineralisation than modelled in the current 2.4Moz MRE (refer to company
announcement 22 April 2022).
Assays for the remaining holes submitted to the laboratory that remain
outstanding are expected to be reported in May 2022 which will enable the
modelling of an updated JORC MRE based on the shallow, bulk tonnage
mineralisation at Panton.
These latest assay results are set out in Table Three below (refer to company
announcement 22 April 2022):
Hole ID From To Interval Pd Pt Au PGM(3E)(1) Ni Cu Co PdEq(2)
(m)
(m)
(m)
(g/t)
(g/t)
(g/t)
(g/t)
(%)
(%)
(ppm)
(g/t)
Intersections based on 0.5 g/t PGM(3E)(1) cut-off grade, maximum 4m internal
dilution
PS138 181 224 43 0.35 0.29 0.09 0.73 0.18 0.03 140 1.13
PS143 82 83 1 0.42 0.42 0.28 1.13 0.16 0.09 155 1.56
PS165 78 82 4 0.25 0.37 0.25 0.87 0.21 0.04 156 1.3
PS177 80 133.3 53.3 0.59 0.56 0.15 1.29 0.22 0.02 159 1.74
PS178 76 86 10 0.42 0.39 0.11 0.92 0.15 0.04 153 1.29
PS215 142 154 12 0.45 0.35 0.14 0.94 0.21 0.04 151 1.41
PS215 160 165.5 5.5 0.34 0.35 0.01 0.71 0.15 0.09 112 1.01
PS215 171 179.8 8.8 0.36 0.35 0.04 0.75 0.18 0.02 145 1.13
Intersections based on 0.5 g/t PdEq(2) cut-off grade, unconstrained
PS133 56 149.1 93.1 0.25 0.21 0.05 0.51 0.17 0.03 146 0.94
PS134 43.2 95.7 52.5 0.32 0.27 0.11 0.69 0.17 0.05 137 1.13
PS138 173 240 67 0.25 0.21 0.07 0.52 0.17 0.05 143 0.97
PS139 183.35 227 43.65 0.15 0.10 0.02 0.27 0.14 0.04 149 0.69
PS143 33 119 86 0.39 0.31 0.05 0.74 0.18 0.03 147 1.16
PS165 33 81.4 48.4 0.39 0.33 0.06 0.78 0.19 0.02 147 1.22
PS174 2.2 62.7 60.5 0.30 0.27 0.13 0.70 0.18 0.04 144 1.15
PS177 78 133.3 55.3 0.57 0.55 0.14 1.26 0.22 0.02 157 1.70
PS178 27 89.9 62.9 0.38 0.32 0.11 0.80 0.18 0.03 149 1.22
PS185 6.5 63 56.5 0.33 0.31 0.09 0.73 0.19 0.04 153 1.18
PS215 113 179.8 66.8 0.26 0.20 0.05 0.51 0.17 0.02 140 0.93
Table Three | Historical Unsampled Drill Assay Results
(1) 3E= Palladium (Pd) + Platinum (Pt) + Gold (Au)
(2) PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.76471xPt(g/t) +
1.90394xNi(%) + 0.875x(Au(g/t) + 1.38936xCu(%) + 8.23xCo(%)
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Figure Five | Panton Drill Hole Plan
Geology & Geophysics Data Review
An extensive review of all existing geological and geophysical data
accumulated throughout the Panton project's 30+ year history is underway. The
project's prior owners were solely focussed on the chromitite reefs given they
were outcropping, high grade and demonstrate continuous mineralisation.
The Company is completing 3D analysis of its aeromagnetic data using modern
geophysical techniques not previously applied to the data. This analysis will
aid the Company's understanding of how the chromitite reefs are orientating at
depth and potentially show anomalous zones to target with follow up deeper
drilling. The analysis has been initiated following a preliminary review of
the characteristics of other PGM deposits which demonstrated projects that
have a similar hydrothermal 'overprinting' may host larger, thicker
sulphide-dominant zones of mineralisation at depth where the chromitite reefs
flatten out.
Metallurgical Update
During the Quarter, the Company completed preliminary sighter test work and an
extensive review of the significant test work data from Panton's previous
owners. The majority of the historical test work had focussed on the chromite
reef mineralisation, being the high-grade portion of the Panton orebody, which
showed PGM recoveries of over 80% in combination with concentrate grades over
100g/t PGM(3E).
The Company's recent test work largely confirmed this on flotation of the
high-grade chromite reef with +100g/t PGM(3E) at over 70% PGM(3E) recovery.
The remodelling of the MRE to include shallow, bulk PGM and Ni mineralisation
is expected to provide scale to enable the Company to consider value-added and
optimisation alternatives for the processing of the lower grade PGM and Ni
mineralisation. The Company's test work is now focussed on optimising
recoveries and concentrate grades on the lower grade, bulk mineralisation. It
has been observed that mineralised host dunite rock which surrounds the
chromite reefs has a different composition, which potentially provide
alternative options for processing and optimisation of the final product.
Physical Separation
Physical separation test work was commenced during the Quarter, utilising a
number of processing techniques which pre-concentrate or separate ore feed
based on its physical characteristics such as size, density or colour. The
physical separation techniques being examined include ore sorting, heavy
liquid separation ("HLS"), spirals and Wet High Intensity Magnetic Separation
("WHIMS"). These techniques have shown favourable results in historical test
work programmes on Panton ore and Future is now applying them to composite
samples of the anticipated ore feed from a bulk tonnage operation. Panton ore
is suitable given the difference in colour between chromite-rich ore,
mineralised dunite, waste dunite, magnesite and talc. This may allow for the
removal of gangue minerals ahead of the milling circuit, and separation of ore
into high-grade and low-grade streams which can then be processed using
targeted milling and reagent regimes. The WHIMS test work will substantiate
prior test work demonstrating the amenability of extracting chromite from
flotation tails to produce a chromite concentrate for sale as a by-product.
Flotation
In parallel with the physical separation test work, during the Quarter the
Company undertook flotation test work seeking to replicate unit operations
common in South African PGM facilities which process a high proportion of the
Panton-analogous UG2 ore as their feed. This will focus on the mineral
deportment at each stage across a 3-stage mill-float ("MF") flow sheet
involving an initial coarse grind and flash float, primary grind and float,
and regrind and float with cleaning.
The majority of the previous test work on Panton ore utilised a single-stage
grind to 38μm followed by a long rougher float and scavenging stages. Initial
sighter test work indicates that a single-stage fine grind creates significant
flotation issues as it generates slimes and liberates free-floating gangue
materials which inhibit the flotation of the base metal and PGM bearing
minerals. A multi-staged MF approach avoids the issues associated with
overgrinding, allows reagent regime to be adjusted through the flow sheet
based on targeted outcomes, and reduces the mass pull to fine-grind unit
operations. The Company is also carrying out flotation test work on material
in the 'weathered' zone of the orebody, following up previous results which
indicated that acceptable recoveries could be achieved given the PGM metal
elements at Panton occur as tellurides, antimonides and bismuthides.
Hydrometallurgy
Prior test work has shown the potential for Panton to produce high value
intermediate products with the Panton concentrate having good amenability to
hydrometallurgical processing which provides several potential benefits over
smelting(1), including:
§ Creates a refined product, allowing the producer to market directly to end
customers, thereby improving payabilities & margins
§ less capital intensive
§ faster relative processing times leading to working capital position
improvement
§ significantly less electricity consumption, SO(2) and CO(2) emissions
§ increased flexibility for integrated upstream production
A hydrometallurgy test work program and scoping review will be initiated in H2
2022.
(1) 'Kell hydrometallurgical extraction of precious and base metals from
flotation concentrates - Piloting, engineering, and implementation advances.'
K.S. Liddell, M.D. Adams, L.A. Smith, and B. Muller 7 A hydrometallurgy test
work program and scoping review will be initiated in H2 2022.
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 in
the midpoint of the range of recoveries for each element based on
metallurgical test work undertaken to date at Panton. It should be noted that
palladium and platinum grades reported in this announcement are lower than the
palladium and platinum grades of samples that were subject to metallurgical
test work (grades of other elements are similar).
Metal recoveries used in the palladium equivalent 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(%)
Corporate
Board and Management Changes
In anticipation of the Company rapidly advancing the Panton project following
the completion of the updated MRE, a number of key changes and appointments
were made during the Quarter.
Mr Jardee Kininmonth, CEO is an experienced corporate finance and mining
professional across several commodity types, with extensive experience in
managing cross-functional teams and working with projects across the mining
life cycle, from greenfield exploration to operating mines.
Mr Brian Talbot, Lead Technical Advisor has over 25 years' experience in the
mining, minerals and chemical processing sectors and holds a bachelor's degree
in Chemical Engineering with Honours.
Mr Andrew Shepherd joins the team as GM - Project Development. Mr Shepherd is
a qualified mining professional with a career spanning over 25 years across
the mining sector in Australia and Asia. Skilled in the planning, development
and implementation of complex, global, multi-discipline mining projects.
The Board had two changes with existing Non-Executive Director Mr Justin
Tremain appointed Non-Executive Chair and previous Executive Chair Mr Greg
Bandy retiring from the Board after more than 10 years of service.
The skill sets of the appointments, combined with those of the existing Board,
place the Company in an excellent position to advance its wholly owned Panton
PGM-Ni Project and generate shareholder value.
Video Presentation
Subsequent to Quarter end, the Company released an updated investor
presentation in video format presented by CEO Jardee Kininmonth. This video is
available on the company website:
https://future-metals.com.au/investor-centre/media/
(https://future-metals.com.au/investor-centre/media/) .
Financial Commentary
The Quarterly Cashflow Report (Appendix 5B) for the period ending 31 March
2022 provides an overview of the Company's financial activities.
The Company is in a strong financial position with approximately A$4.3 million
in cash at the end of the March Quarter.
Expenditure on exploration during the reporting period amounted to
approximately A$254k and included assay costs (A$88k). The Company also paid
A$560k in stamp duty for tenements acquired in June 2021.
Payments for administration and corporate costs amounted to approximately
A$449K. This included payments to related parties and their associates of
A$210k, comprising Director fees, remuneration (including superannuation) and
termination payments.
Statement of Commitments
The March Quarter is covered by the Statement of Commitments(1) outlined in
the ASX Prospectus dated 18 May 2021. A summary of expenditure to date is
outlined in Table Four below.
Proposed Use of Funds Actual
13 June 2021 to 13 June 2023 (13 June 2021 to
A$ 31 March 2022)
A$
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 2,268,579
Metallurgical testwork 500,000 100,242
Process design, mining and development studies 1,000,000 -
Other technical studies 500,000 -
Assessment of complementary assets or projects 500,000 -
SUB-TOTAL 9,255,495 5,929,237
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 1,535,963
Working Capital 768,200 44,241
TOTAL 14,225,863 9,584,415
Table Four | 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 applied
This announcement has been approved for release by the Board of Future Metals
NL.
Further Information
For further information please refer to the ASX platform under ASX code FME or
visit the Company's website at www.future-metals.com.au
(http://www.future-metals.com.au) .
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
W H Ireland Limited (UK Broker) +44 (0) 207 220 1670
Harry Ansell/Katy Mitchell
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 it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018 (as amended).
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 Geoscientists. Mr Hibbird is a
consultant of the Company 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.
References may have been made in this announcement to certain past ASX
announcements, including references regarding exploration results. For full
details, refer to the referenced ASX announcement on the said date. The
Company confirms that it is not aware of any new information or data that
materially affects the information included in these earlier market
announcements.
The information in this announcement which relates to Mineral Resources was
stated in the Company's Prospectus dated 18 May 2021. The Company confirms
that is not aware of any new information or data that materially affects the
information included in the Prospectus relating to Mineral Resources, and that
all material assumptions and technical parameters underpinning the Mineral
Resource Estimate continue to apply and have not materially changed.
The information in this announcement that relates to Metallurgical Results is
based on, and fairly represents, information compiled by Dr Evan Kirby, a
Competent Person who is a Member of the Australian Institute of Mining and
Metallurgy. Dr Kirby is a full-time employee of Metallurgical Management
Services (MMS) a specialist metallurgical consultancy and an independent
consultant of the Company. Dr Kirby 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). Dr Kirby 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 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 March Quarter
Project Location Tenement Interest at beginning of Quarter Interest at end of Quarter
No changes during the March Quarter
Farm-In / Farm Out Agreement changes during the March 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 31 March
2022
Project Location Tenement Area Interest at end of Quarter
Panton PGM 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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