Panton Drilling Returns 140m of PGM & Base Metal Mineralisation from 28m

Future Metals NL ("Future Metals" or the "Company", ASX|AIM: FME), a platinum group metals ("PGM") focused company, is pleased to report further shallow, wide PGM assay results from the resource definition drilling undertaken at its 100% owned Panton PGM Project ("Panton") in northern Western Australia.

Highlights 

§  Assay results received for a further two resource definition holes (refer to Table One and Appendix Two for full details).

§  Drill hole PS400 returned an unconstrained bulk intersection of 140.8m @ 1.07g/t PdEq3 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:

o   39.48m @ 1.20 g/t PdEq³ (0.81 g/t PGM3E² & 0.17% Ni) from 37.1m

o   25.66m @ 1.17 g/t PdEq³ (0.74 g/t PGM3E² & 0.19% Ni) from 104.34m

o   12.2m @ 1.15g/t PdEq³ (0.66 g/t PGM3E² & 0.18% Ni) from 135.4m

§  Drill hole PS398 also returned broad widths of shallow PGM and nickel mineralisation, including:

o   20.6m @ 2.14g/t PdEq³ (1.79 g/t PGM3E² & 0.20% Ni) from 39m

o   11m @ 1.12 g/t PdEq³ (0.72 g/t PGM3E² & 0.15% Ni) from 64m

o   30.6m @ 1.21 g/t PdEq³ (0.75 g/t PGM3E² & 0.21% Ni) from 83m

§  Unconstrained intersections within the zone of sulphide mineralisation from drill hole PS400 included intercepts of:

o   34.05m @ 0.16 g/t Au + 0.14% Cu + 0.17% Ni from 208.7m

o   18.3m @ 0.08 g/t Au + 0.13% Cu + 0.16% Ni from 266.5m

§  Assay results pending for a further 47 drill holes comprising 14 holes recently drilled by the Company and 33 historical drill holes that were not previously sampled through the footwall of the Upper Reef

§  Once the remaining assay results have been received, the Company will incorporate the new results into an updated JORC Mineral Resource Estimate ("MRE") that will encompass shallow, bulk PGM-Ni mineralisation up to 20-40 metres in thickness, that importantly sits outside of the current JORC MRE of 14.32Mt @ 4.89g/t PGM6E1 and 0.31g/t gold for 2.4Moz of contained PGM and gold (refer to Appendix One) (refer to the Company's announcement of 8 December 2021 and Figures Two and Three)

§  Metallurgical flotation test work is underway on both high-grade and low-grade representative composite samples from the previously reported metallurgical holes

§  The Company is reviewing all geophysical and geological data accumulated over the 30+ years of work completed at Panton to identify trends in mineralisation which sit outside of the known chromitite reefs in order to identify potential follow-up disseminated or massive sulphide targets, both lateral to the known chromitite-driven mineralisation and at depth, below the drilled vertical extent of the chromitite reefs

§  The Company remains in a strong financial position, with cash at bank of A$5.6 million as at 31 December 2021

¹ PGM6E = Palladium (Pd) + Platinum (Pt) + Rhodium (Rh) + Ruthenium (Ru) + Osmium (Os) + Iridium (Ir)

² PGM3E = Palladium (Pd) + Platinum (Pt) + Gold (Au)

³ PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.76471xPt(g/t) + 0.875xAu(g/t) + 1.90394xNi(%) + 1.38936xCu(%) + 8.23xCo(%)

Mr Jardee Kininmonth, CEO of Future Metals, commented:

"These results exceed expectations on the mineralised width of the Panton orebody, providing further evidence of mineralisation extending well beyond the footwall of the middle reef. The intercept of 140.8m @ 1.07 g/t PdEq includes significant zones of sulphide mineralisation cross cutting the chromitite reefs, demonstrating the presence of disseminated or massive sulphide zones outside of the currently targeted chromitite reef-driven mineralisation. Evidence of these broad sulphide zones exists through much of the historical drill data which the Company is currently analysing to provide follow up targets for the next drill season."

Exploration Drillhole Assay Results

A total of 19 resource definition holes were drilled as part of the Company's approximate 6,000m diamond core drilling programme. Additionally, the Company sampled core from 33 historical diamond drill holes to support the modelling of an updated MRE based on the bulk tonnage mineralisation at Panton.

Assay results for a further two of the 19 resource definition holes drilled (PS398, PS400) have now been received and continue to confirm much broader widths of shallow PGM mineralisation than modelled in the current 2.4Moz MRE (refer to Appendix One).  Assays are pending for a further 47 drill holes being 14 resource definition holes drilled by the Company and the 33 historical drill holes. Assay results from these two latest holes are set out in Table One below (refer to Appendix Two for the drill hole details):

Table One | Drilling 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(%)

http://www.rns-pdf.londonstockexchange.com/rns/8871D_1-2022-3-7.pdf

Figure One | Panton Drill Hole Plan

http://www.rns-pdf.londonstockexchange.com/rns/8871D_1-2022-3-7.pdf

Figure Two | Future Metals' Exploration Drilling (PS398) - Panton Cross Section

http://www.rns-pdf.londonstockexchange.com/rns/8871D_1-2022-3-7.pdf

Figure Three | Future Metals' Exploration Drilling (PS400) - Panton Cross Section

Drilling Programme Overview

As previously reported, the Company has completed approximately 6,000m of diamond core drilling 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 has completed 27 drill holes to date. Eight holes were drilled to provide metallurgical samples as announced on 28 October 2021 and 17 January 2022. Assay results have now been received for 5 resource definition holes drilled, with results from two reported in this announcement and three holes previously reported on 17 February 2022. Assay results from the remaining 14 resource definition holes remain pending.

Historical 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' (refer to the Company's announcement of 8 December 2021). Furthermore, several historical 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.

The Company sampled partially unassayed historical holes that were drilled into the mineralised footwall dunite. A total of 33 historical drill holes that were not previously completely assayed have now been sampled and submitted for assaying in December 2021 and January 2022.

The Company expects to progressively report assay results from a further 47 drill holes (comprising the 14 recently drilled holes not yet reported and 33 historical holes) regularly throughout the remainder of Q1, 2022 and into early Q2, 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 of up to 20-40 metres in thickness that sits outside of the current MRE (refer to the Company's announcement of 8 December 2021). It should be noted that in the Company's previous announcement, 'Panton Drilling Continues to Confirm Bulk Tonnage Potential' on 17 February 2022, the cross sections erroneously implied the mineralised dunite which sits between the Upper and Middle Reef as being included in the Company's current JORC Resource. This portion of the mineralisation is not included in the current Mineral Resource Estimate.

Geology & Geophysics Data Review

The Company has initiated an extensive review of all existing geological and geophysical data accumulated throughout the Panton project's 30+ year history. The project's prior owners were solely focussed on the chromitite reefs given they were outcropping, high grade and demonstrate continuous mineralisation.

The PGM, gold and base metal mineralisation targeted by the Company is the result of two mineralization processes. The first, and primary mineralisation event led to the formation of Au and PGM mineralisation closely associated with chromitite reefs and disseminated chromite within dunite. Gold, copper, nickel, cobalt and PGM mineralisation has further been enriched as the result of a secondary hydrothermal mineralisation event which has overprinted the primary mineralisation.  It is interpreted that this secondary hydrothermal event is largely controlled by structures - shears and faults that both parallel, or sub parallel the primary layering of the chromitite reefs and also cross cut the trend of the reefs at a high angle. The secondary hydrothermal event is also possibly responsible for the sulphide-rich zones which have been intersected in current and historical drilling. The cross-cutting vein and shear structures are predominantly normal to the chromitite reefs, and therefore sub-parallel to the majority of the drilling at Panton. There has been no drilling or other work to date to follow up on the mineralisation potential of these cross-cutting structures.

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.

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(%)

This announcement has been approved for release by the Board of Future Metals NL.

For further information, please contact:

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 Mining and Metallurgy and the Australian Institute of Geoscientists. Mr Hibbird is the Company's Exploration Manager 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.

The information in this announcement which relates to Mineral Resources was stated in the Company's ASX Prospectus dated 18 May 2021. The Company confirms that it 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.

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.
 

Notes to Editors:

About Panton PGM Project

The 100% owned Panton PGM project is located 60 kilometres 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 1 kilometre off the Great North Highway which accesses the Port of Wyndham (refer to Figure Four).

The Panton PGM Project has a JORC Mineral Resource estimate of 14.32Mt @ 4.89g/t PGM, 0.31g/t Au and 0.27% Ni (refer to Appendix 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. PGM mineralisation is hosted within two stratiform chromite reefs, the Upper and Middle reefs, within the ultramafic sequence. 

http://www.rns-pdf.londonstockexchange.com/rns/8871D_1-2022-3-7.pdf

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

Panton JORC (2012) Mineral Resource Estimate

http://www.rns-pdf.londonstockexchange.com/rns/8871D_1-2022-3-7.pdf

Appendix Two

Exploration Drill Hole Details

Appendix Three | JORC Code (2012) Edition Table 1

Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results