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 PGM3E from
0m (EOH) (EBRC 010)
§ Incl. 16m
@ 1.0% Cu, 0.36% Ni & 0.99g/t PGM3E from
100m
o 96m @ 0.70% Cu, 0.29% Ni & 0.78g/t PGM3E from
24m (EOH) (EBRC 003)
§ Incl. 10m
@ 1.08% Cu, 0.34% Ni & 1.04g/t PGM3E from
56m
o 84m @ 0.54% Cu, 0.24% Ni & 0.75g/t PGM3E from
36m (EOH) (EBRC 011)
o 47m @ 0.62% Cu, 0.30% Ni & 0.60g/t PGM3E from
3m (AD07)
o 36m @ 0.53% Cu, 0.25% Ni & 0.59g/t PGM3E 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 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:
