REG - Future Metals NL - Quarterly Activities Report

Future Metals NLAnnouncement

29/07/2024 09:30

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RNS Number : 1922Y  Future Metals NL  29 July 2024

 

29 July 2024

Future Metals NL

Quarterly Activities Report for quarter ended

31 June 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 June 2024 (the "Quarter").

Highlights

§  During the current environment of low PGM prices, Future Metals is
principally focused on:

o Drilling priority targets at Eileen Bore and within the Alice Downs
Corridor, targeting new discoveries of Cu-Ni-PGM mineralisation in proximity
to potential future operations at its Panton PGM Project

o Assessment of potential copper and precious metals project opportunities
and/or assets within strategic proximity to the Panton PGM Project

o Low-cost development opportunities at the Panton PGM Project and continued
prudent financial management

§  Post quarter end, environmental assessment completed at Panton and
commencement of Heritage Survey over Alice Down Corridor and Panton North Area

§  Drilling at the Eileen Bore Prospect on schedule for September quarter on
receival of heritage clearance approval

§  $295,000 of co-funded cash grants awarded under the WA Government
Exploration Incentive Scheme ('EIS'):

o $180,000 for drilling at the Eileen Bore Prospect

o $115,000 for ground gravity at Panton North and across the Alice Downs
Corridor

§  Received shareholder approval for the planned Options Offer of new 3-year
options exercisable at 6 cents per share with an issue price of 0.025 cents
each

Exploration Discussion

During the Quarter a field program for Aboriginal Heritage Surveys was planned
and completed post quarter end over the Alice Downs Corridor (including the
Eileen Bore Prospect) and Panton North areas. Upon approval of the survey by
the Malarngowen Aboriginal Corporation, Future Metals is planning ground
gravity surveys over the Alice Downs Corridor and Panton North areas as well
undertaking drilling at the Eileen Bore Prospect (see Figure One). Heritage
approvals are expected to be achieved within the September quarter.

Ground Gravity

The planned ground gravity survey in the Alice Downs Corridor will provide
complimentary data to the existing magnetics data along the 18km mineralised
corridor.  The corridor has the potential to host multiple mineralised Ni-Cu
bodies that are similar to the Copernicus Nickel Deposit. The additional data
will assist in targeting buried intrusive bodies and further refining the
Eileen Bore geological model prior to drilling.

At Panton North, the additional data will be used to refine the existing
geological model and depth of the Panton Intrusion.  Over the past nine
months, field work and data interpretation has indicated a structural
complexity at Panton not previously recognised which has the potential for
further mineralisation.

Drilling

Drilling at Eileen Bore will be undertaken following receipt of clearances in
respect of the Aboriginal Heritage Survey from the Malarngowen Aboriginal
Corporation. The drill program aims to target extensions and determine the
down-dip extent of the mineralisation in previous drilling (Drill Target 1).
Drilling will also test adjacent surface mineralisation that has not
previously been subject to drilling (Drill Target 2) (see Figure Three).

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

Alice Downs Corridor

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; the down-dip extent of the historic
mineralisation is planned to be tested in the September quarter.

 

Figure Two | Regional Plan showing main targets along the Alice Downs
Corridor's 18km strike.

Note the location of the Eileen Bore Drilling inset map for Figure Three.

Eileen Bore Prospect

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.

A total of 5,761m over 60 holes have previously been drilled at Eileen Bore.
This historical drilling confirms a disseminated Cu-Ni-PGM magmatic sulphide
body within a gabbro-pyroxenite host extending over ~300m of strike. Multiple
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 results include:

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

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

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

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

o   84m @ 0.54% Cu, 0.24% Ni & 0.75g/t PGM(3E) from 36m (EOH) ((EBRC
011))

o   47m @ 0.62% Cu, 0.30% Ni & 0.60g/t PGM(3E) from 3m ((AD07))

o   36m @ 0.53% Cu, 0.25% Ni & 0.59g/t PGM(3E) from 40m ((EBRC 002))

o   64m @ 0.77% Cu, & 0.30% Ni from 32m (EoH) ((EP09))

o   52m @ 0.74% Cu, & 0.29% Ni from 10m ((EP08))

To the north, Drill Target 2 is based on coincident magmatic
chalcopyrite-pyrrhotite mineralisation identified in peridotite rock chips and
confirmed by petrology.  These rocks chips are associated with Ni-Cu, PGE and
Au soil anomalism. There is no historic drill testing in the area. Drill
Target 1 and Drill Target 2 are outlined in Figure Three below.

Figure Three | Eileen Bore Prospect showing drill areas: down plunge
mineralisation     and Drill Targets 1 and 2.

EIS Funding

The Company has been successful in two applications for co-funding under the
Western Australian Government's Exploration Incentive Scheme ('EIS').

As part of the EIS Round 27 co-funded drilling program, A$180,000 has been
granted for drilling at Eileen Bore within the Alice Downs Corridor and
A$115,000 has been granted for ground gravity at Panton North and across the
Alice Downs Corridor.  The ground gravity is part of the Venture 1 co-funding
geophysical grant (maiden year).

Project Generation

During the Quarter, the Company continued to actively review and undertake due
diligence on resources assets which complement the development and exploration
strategy of Future Metals at the Panton PGM Project and the Eileen Bore
Cu-Ni-PGM Project.

The Company is focused on assessing and undertaking due diligence on
brownfield project opportunities within the copper and precious metals
sectors, in addition to all opportunities within a strategic proximity to the
Panton 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

Options Entitlement Offer

During the Quarter the Company announced a proposed Options Offer to subscribe
for 1 new option for every 1 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 expired on 11 June 2024.

Each new option will be exercisable at a price of 6 cents per share and expire
3 years from their date of issue. The Company engaged CPS Capital Group Pty
Ltd to act as underwriter for the full Option Offer, being 100% of the funds
to be raised under the Options Offer based on the number of FMEO options on
issue at the date of the Prospectus.

The Company obtained shareholder approval for the Offer at the end of the
Quarter. The Company expects to lodge a Prospectus with ASX/ASIC imminently.

Cost Rationalisation and R&D Rebate Application

During the Quarter the Company continued to progress the reduction in
discretionary corporate expenditure to reduce overheads and maintain cash
during the current period of low PGM prices. The Company will continue to
assess and progress further corporate cost-cutting measures into the September
quarter.

The Company has also made an application with the Research and Development
(R&D) Tax Incentive Program, an Australian Government initiative for
provision of funding for innovation, research and development. The Australian
Tax Office and the Department of Industry, Science and Resources jointly
administer the R&D tax incentive program. The application is currently
undergoing the review process. The R&D work completed by Future Metals to
date, in particular in the unlocking of the Panton metallurgical flowsheet,
represents the culmination of approximately 20 years of research, development
and innovation toward the development of the project.

Financial Commentary

The Quarterly Cashflow Report (Appendix 5B) for the period ended 30 June 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/1922Y_1-2024-7-29.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1922Y_1-2024-7-29.pdf)  and
on the Company's website.

The Company held approximately A$2.28m in cash at the end of the Quarter.

Exploration and project development expenditure during the Quarter amounted to
approximately A$471k. Payments for administration and corporate costs amounted
to approximately A$231k. This included payments to related parties and their
associates of A$127k, comprising Director fees and remuneration (including
superannuation).

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

 

04 JUL 2024    Change of Auditor
(https://www.investi.com.au/api/announcements/fme/a38c4e6b-b75.pdf)

04 JUL 2024    Notification of cessation of            securities -
FME (https://www.investi.com.au/api/announcements/fme/fe217ed7-483.pdf)

04 JUL 2024    Notification regarding unquoted securities - FME
(https://www.investi.com.au/api/announcements/fme/625b7c1a-d65.pdf)

03 JUL 2024    Change of Director's Interest Notice x4
(https://www.investi.com.au/api/announcements/fme/74089c22-bea.pdf)

03 JUL 2024    Notification of cessation of securities - FME
(https://www.investi.com.au/api/announcements/fme/e8080980-1bb.pdf)

03 JUL 2024    Notification regarding unquoted securities - FME
(https://www.investi.com.au/api/announcements/fme/749625df-703.pdf)

03 JUL 2024    Cleansing Notice
(https://www.investi.com.au/api/announcements/fme/b9c85be2-624.pdf)

02 JUL 2024    Change of Company Address
(https://www.investi.com.au/api/announcements/fme/3f9b6ab4-695.pdf)

02 JUL 2024    Application for quotation of securities - FME
(https://www.investi.com.au/api/announcements/fme/72a67a02-8c0.pdf)

25 JUN 2024   Results of General Meeting
(https://www.investi.com.au/api/announcements/fme/f51c75ce-049.pdf)

 

 

14 JUN 2024   Notification of cessation of securities - FME
(https://www.investi.com.au/api/announcements/fme/22c2fe1e-ba7.pdf)

 

12 JUN 2024   Application for quotation of securities - FME
(https://www.investi.com.au/api/announcements/fme/7d31c527-50c.pdf)

24 MAY 2024  Notice of General Meeting/Proxy Form
(https://www.investi.com.au/api/announcements/fme/50b14306-f4c.pdf)

24 MAY 2024  Letter to Shareholders
(https://www.investi.com.au/api/announcements/fme/c731ce3f-958.pdf)

22 MAY 2024  Cleansing Notice
(https://www.investi.com.au/api/announcements/fme/10a587ac-710.pdf)

22 MAY 2024  Release of Securities from Voluntary Escrow
(https://www.investi.com.au/api/announcements/fme/bb472e59-0bc.pdf)

21 MAY 2024  Application for quotation of securities - FME
(https://www.investi.com.au/api/announcements/fme/93972340-870.pdf)

14 MAY 2024  FME Receives EIS Grant to Drill Eileen Bore Mineralisation
(https://www.investi.com.au/api/announcements/fme/f9dc382c-f97.pdf)

10 MAY 2024  Notification of Expiry of Quoted Options
(https://www.investi.com.au/api/announcements/fme/2d36c453-fe7.pdf)

03 MAY 2024  Proposed Options Entitlement Offer
(https://www.investi.com.au/api/announcements/fme/2e244a06-7cf.pdf)

 

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 & Broker)      +44 (0) 207 409 3494
 James Harris/James Bellman

 

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.

 

 

Appendix One | Exploration and Mining Permits

Exploration & Mining Permits changes during the Quarter

 

                                            Interest at beginning of Quarter  Interest at end of Quarter

 Project      Location           Tenement
 Springvale   Western Australia  E80/4753   100%                              0%
 Sally Downs  Western Australia  E80/4951   100%                              0%
 Sally Downs  Western Australia  E80/5911   14 Blocks (BL) (pending)          Withdrawn

 

Farm-In / Farm Out Agreement changes during the Quarter

 

                                                                  Interest at beginning of Quarter  Interest at end of Quarter

 Joint Venture        Project       Location           Tenement
 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 June
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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