Eileen Bore Prospect

The Eileen Bore Prospect is an advanced exploration target with historic drilling confirming wide zones of consistent Cu-Ni-PGM mineralisation from surface along a known strike of approximately 300m.

Mineralisation remains open down plunge and at depth, with mineralisation only tested to 96m to date.

A total of 5,761m over 60 holes has been drilled at Eileen Bore. This historical drilling demonstrated a disseminated Cu-Ni-PGM magmatic sulphide body within a gabbro-pyroxenite host that extends 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. Drilling down plunge remains open with scope for significant additional mineralisation (see Figure Two).

Figure One | Regional Plan showing main targets along the Alice Downs Corridor 18km strike.  Note the location of the Eileen Bore inset Map expanded in Figure Three.

Figure Two | Cross section of drilling at Eileen Bore demonstrating that mineralisation remains open at depth.

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)

Additional compelling targets at Eileen Bore are situated to the northeast of the area that has been previously drilled, in an antiformal fold axis and to the south along the Alice Downs Fault in a synform. To the north, Drill Target 2 is based on coincident magmatic chalcopyrite-pyrrhotite mineralisation identified in peridotite rock chips by petrology and is associated with Ni-Cu, PGE and Au soil anomalism. There is no historical drill testing in the area. To the south, Drill Target 3 is associated with the same coincident soil anomalism identified at Eileen Bore and Drill Target 2, which has also not been drill tested. The targets are outlined in Figure Three below.

Figure Three | Eileen Bore Prospect showing three main drill areas: down plunge mineralisation from section A-A' and Drill Targets 2 and 3.

Additional Targets

The Salk prospect is situated along strike to the north of Eileen Bore within the same 100% owned exploration tenement. Historical drilling at Salk identified nickel-copper mineralisation in an ultramafic that is interpreted to be in a fault offset position from the Copernicus Mine. Results included 17m @ 0.31% Ni and 0.18% Cu from 36m (including 2m @ 0.68% Ni and 0.31% Cu). The current structural interpretation suggests that the mineralisation plunges to the northwest and drilling at Salk has only occurred to the south.

The Palamino prospect is further along strike to the north, within the farm-in joint venture area with Octava Minerals Ltd (ASX:OCT), where Future Metals is earning a 70% interest (see Figure One). Historical drilling confirmed a thick pyroxenite body dipping to the northwest not previously mapped. Disseminated sulphides were intersected, with the best results being 5m @ 0.39% Ni and 0.32% Cu in drill hole WCR016 (ASX:OCT 13 Feb 2024). 

Forward Exploration Plan

The Company is planning a drilling campaign to test the down plunge extension of Eileen Bore and confirm adjacent near-surface economic mineralisation at Drill Targets 2 and 3. This initial stage of drilling is currently intended to commence in Q3 2024. Follow-up stages will occur if initial drilling determines the potential for material economic mineralisation.

In addition, field mapping and sampling will be undertaken along the Alice Springs Corridor, with a particular focus on Palamino and Salk to confirm the current geological model and refine these drill targets.

Panton PGM Project

Following the release of the Scoping Study over the Panton PGM Project in December 2023, Future Metals has continued to progress the development of the asset in line with the Company's strategy of ensuring that Panton is development-ready in time for the next PGM price upswing.

The Scoping Study highlighted the potential for Panton to be one of the few significant primary PGM operations in the western world. The Study supports a high-grade, initial 9-year operation processing both Reef and High-Grade Dunite material through a conventional crush, grind and flotation flow sheet, producing:

The Study also highlighted robust economics, with Panton demonstrating strong financial metrics that reflect the Project's high grade and low capital intensity.

During the Quarter, the Company initiated discussions with certain offtakers and end users to assess potential future commercial relationships between the parties. In particular, Future Metals is focused on promoting Panton PGM concentrate as an alternative supply of material scale versus current production, which is sourced from high sovereign risk jurisdictions, including South Africa, Russia, and Zimbabwe (representing ~85% of current global production).

Future Metals also sees strong potential for further metallurgical improvements to the Panton PGM concentrate, including additional minor payable metals and further flowsheet simplification. The Company has made preliminary steps to continue progressing these initiatives during the Quarter while maintaining a focus on limiting expenditure on material-scale test work programmes to preserve capital during the current period of low PGM commodity prices.

M&A Due Dilligence

The Company is undertaking an active programme of due diligence on resource asset acquisitions that could potentially complement the current development and exploration strategy at the Panton PGM Project and the Eileen Bore Cu-Ni-PGM mineralisation.

In particular, the Company is currently focused on assessing potential copper opportunities that could add material shareholder value through near-term development.   

Corporate

Capital Raising

Future Metals successfully raised A$3.3M (before costs) via a fully underwritten non-renounceable Entitlement Issue (the "Entitlement Issue"). Net proceeds from the Entitlement Issue will be used for drilling and exploration activities and to progress value enhancement workstreams for the Panton Project, following the recent completion of the Panton Scoping Study.

Strategic Board Changes

The Company announced certain strategic Board changes in line with the continued development of the Panton PGM Project and its overall growth.

Mr Jardee Kininmonth resigned as Managing Director and CEO and will leave the Company following a transition period to the end of May to handover his responsibilities. Non-Executive Director, Elizabeth Henson stepped down to focus on her other business interests. Mr John Carr and Mr Sam Rodda joined the Company as Non-Executive Directors.

Jardee played a critical role in directing the Company's overall strategy and demonstrating the significant value of the Panton PGM Project. This is highlighted by the successful delivery of the upgraded JORC 2012 Mineral Resource Estimate ("MRE"), the subsequent delivery of the Panton Scoping Study, and significantly expanding the Company's strategic exploration position in a highly prospective region.

John Carr is an entrepreneur, executive and chemical engineer and notably was co-founder of New Century Resources, which acquired and restarted the Century Zinc Mine in Queensland, Australia. As Chief Development Officer, John was responsible for developing the large-scale brownfield base metal mine re-start and expansion at Century, now a top-15 global zinc producer and Australia's largest tailings reprocessing operation. John also led the acquisition of the Mt Lyell Copper Mine from Vedanta Resources. In 2023, New Century was acquired by multinational PGM and gold producer, Sibanye Stillwater Ltd.

Sam Rodda's appointment to the Board of Future Metals provides additional capacity and competence in the planned development of future operations at Panton. Sam has broad experience in technical and commercial roles within the mining industry. Notably, Sam was previously Managing Director of the ASX-listed PGM developer Podium Minerals Limited. Sam has also held significant operational roles at a number of large underground and open pit mining operations in Australia and internationally, including at MMG Limited, where he held the position of General Manager Operations and Technical Excellence. Sam has also held senior roles within WMC and BHP Billiton.

Future Metals' Executive Chairman, Mr Patrick Walta, commented: "The Board changes complement the Company's continued progression of Panton toward future operations. Now is the right time to appoint the team that will lead Future Metals through the final feasibility stages to be production-ready during the next PGM price upswing."

Octava Limited Joint Venture

During the Quarter the Company issued 6,674,887 new ordinary shares to Octava Minerals Limited in accordance with the terms of its joint venture, whereby Future Metals may earn up to a 70% interest in various tenements, subject to minimum annual expenditure commitments. Please refer to the Company's announcement dated 17 January 2023 for further details.

Financial Commentary

The Quarterly Cashflow Report (Appendix 5B) for the period ending 31 March 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/3902M_1-2024-4-29.pdf and on the Company's website.

The Company held approximately A$2.94m in cash at the end of the Quarter.

Exploration and project development expenditure during the Quarter amounted to approximately A$345k. Payments for administration and corporate costs amounted to approximately A$325k. This included payments to related parties and their associates of A$167k, comprising Director fees and remuneration (including superannuation).

In addition, the Company announces that Strand Hanson Limited has assumed the role of sole broker to Future Metals with immediate effect.

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