4 May 2023

Future Metals NL

Drilling to Commence at Nickel Sulphide Targets

Highlights

§ Electromagnetics ("EM") data indicates significant area of anomalism over the untested embayment feature ("BC1") which is supported by mapping and rock sampling

§ Rock chip sampling at BC1 has identified anomalous nickel sulphide mineralisation on the margin of the EM anomaly, and multiple occurrences of mineralised ultramafic rock throughout the BC1 area

o  Portable X-Ray Fluorescence ("pXRF") analysis returned an average of 0.43% Ni, 0.06% Cu, 0.05% Co, 0.22% S from a BC1 contact rock sample

§ Further near surface nickel rich mineralisation identified up-dip of drill hole PS053 from a gossanous rock chip sample with pXRF analysis averaging 1.95% Ni, 0.26% Cu and 0.09% Co

§ Reverse circulation ("RC") drilling scheduled to commence in mid-May 2023 at BC1

§ Exploration Incentive Scheme ("EIS") funding of $147,000 secured for drilling to test Ni-Cu-PGM targets at the Panton West target area in June 2023

Future Metals NL ("Future Metals" or the "Company", ASX | AIM: FME), is pleased to provide an update on its upcoming drilling program at the Panton North project where the Company is farming into a majority 70% joint venture interest. This update also provides details of positive results from recent rock chip sampling at the Company's wholly owned Panton Project ("Panton" or "the Project") located adjacent to Panton North.

Mr Jardee Kininmonth, Managing Director of Future Metals, commented:

"FME continues to build upon its nickel sulphide exploration model and work towards the discovery of a large, high-grade accumulation of Ni-Cu sulphides.

"Following our detailed geological mapping and sampling at Panton and Panton North, the team is looking forward to kicking off the 2023 field season. BC1 was initially identified through a desktop review, with the area having previously been overlooked, partially because it was not part of the Panton tenements. Our ground investigations have now all but confirmed that BC1 is a true basal contact position for the highly mineralised Panton Complex, and all indications suggest that it has the potential to be a rich Ni-Cu sulphide hosting environment.

"While BC1 and Panton West are the near-term targets for initial drilling in May and June 2023, we have made further exciting observations throughout the Panton project area, including the identification of a nickel and copper rich gossan which graded 1.95% Ni, 0.26% Cu, and 0.09% Co by pXRF analysis (averaged). This is potentially a surface continuation of the magmatic sulphide mineralisation drilled in hole PS053, and a systematic ground mapping and sampling exercise is being undertaken to further delineate areas of interest.

"Any further discovery of economic mineralisation within the Panton Complex will be highly complementary to our existing 6.9Moz PdEq JORC Resource which is the focus of our ongoing Scoping Study."

The Company recently completed ground investigations at the BC1 prospect to follow up on a large, interpreted embayment feature identified during desktop analysis.

This work has confirmed the presence of ultramafic and weathered ultramafic rocks beyond the current geological map contacts as well as confirming the embayment feature (BC1), as a highly prospective nickel sulphide target.

Importantly, the presence of a mineralised ultramafic gossan and an iron-rich gossan were discovered within the BC1 prospect. These samples are located on the contact of a Helicopter Towed System Transient EM ("HoisTEM") HoisTEM anomaly which has a 700m strike and 125m width. This is further supported by a strong magnetic feature and a highly anomalous nickel-copper association in stream sediments. Assays from historical drill holes (PS157 & PS158) near the contact of the HoisTEM anomaly also returned significant intersections of nickel sulphide mineralization.  

The Company has secured all the necessary approvals and a drill contractor to drill this highly prospective, untested target during May 2023.

The Company is also pleased to announce that it has been approved for EIS funding of A$147,000 from the Western Australian State Government to co-fund a planned multi-hole RC drilling programme at the Panton West Prospect, which sits within the Panton North project area.

The Company's analysis and ground investigations has confirmed that Panton West is another prospective untested basal contact position with multiple coincident indicators for Ni-Cu-PGM sulphide mineralisation.

The Company plans to begin drilling at Panton West in June 2023 and will provide further details on its targeting work through Q2 2023.

Figure One | Panton and Panton North Exploration Target Areas

Figure Two | Plan view of BC1 with HoisTEM

Exploration Programme

Drilling Approvals, Logistics

Planned drilling at BC1 and Panton West has been approved by the Department of Mines, Industry Regulation and Safety further to recent PoW submissions.

Heritage surveys over the BC1 and Panton West target areas have also been completed and cleared with a representative group of Malarngowem Traditional Owners.

A drilling contractor has been secured to complete an initial RC programme, with a drill rig expected to arrive on site in mid-May 2023. Follow up drilling of BC1 is planned for mid-June along with drilling of Panton West.

Ground investigation and surface sampling

The Company recently completed ground field mapping and sampling along the northern contact of the Panton Sill, which includes BC1, as well as the Panton West area.  The northern contact of the Panton Sill has historically been incorrectly mapped; likely due to topographic constraints and historic tenure boundaries limiting the extent of exploration.  Mapping the contact has confirmed the BC1 embayment feature as well as a smaller, thickened portion to the east, near Panton North.  Within this extended basal contact area, averaged pXRF analysis indicates a Ni-Cu anomalous association in the central and eastern portion of the contact with the BC1 area showing a more Ni-S anomalous association.  An iron-rich gossan, on the north central most contact of the weathered ultramafic with metasediments, has returned an averaged pXRF reading of 0.22% Co, 0.08% Cu, 0.08% S and 0.01% Ni (see Photo Two).  This is the same area where weathered rock chips of ultramafic have returned multiple anomalous Ni-Cu samples.

At BC1, an ultramafic outcrop of pyroxenite returned a pXRF average of 0.43% Ni, 0.22% S, 0.06% Cu and 0.05% Co.  Photo Three of this sample shows the oxidation of the sulphide.

South of BC1, ground mapping around drill holes PS053 and PS407 has identified gossanous material that has been shifted to create historic drilling pads, over a 50m x 40m area.  Further exploration of the area has identified weathered sulphides in two ultramafic rock chips with an average pXRF values of 1.95% Ni, 0.26% Cu, 0.09% Co, 0.01% S 135m to the northwest of PS053 (BD23-056, see Photo Four) and 4.28% Ni, 013% Cu, 0.11% Co, 0.01% S that is 70m to the northwest of PS053 all position along strike of a northwest fault (BD23-055). BD23-055 was collected from rock which has been disturbed from historical clearing.  This is the same structure that is interpreted to host the magmatic sulphide mineralisation in hole PS053.  Further work needs to be completed in this area in order to map the structures and the prospective host unit.

The Company is currently planning further detailed mapping, soil and rock chip sampling in key areas to assist in target generation. 

Photo One | Heavily altered ultramafic to magnesite found throughout BC1 (BD23-024)

Photo Two | Iron gossan on ultramafic contact with sediment (RAS011)

Photo Three | Mineralised pyroxenite (BD23-007)

Photo Four | Mineralised dunite, 70m from PS053 drill collar (BD23-056)

pXRF data has been used as an exploration tool and a guide only and should not be considered a proxy or substitute for laboratory analysis. The measurements recorded and set out in this announcement are from averaged single spot locations and may not be representative of the whole rock. Where possible the Company has attempted to reduce bias by providing a range of values based on analysis of multiple spots on each rock. The Company will selectively submit rock chip samples for laboratory geochemical assay and provide an update on these results when they become available.

For further information, please contact:

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.

Competent Person's Statement

The information in this announcement that relates to Exploration Results is based on, and fairly represents, information compiled by Ms Barbara Duggan, who is a Member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Ms Duggan is the Company's Principal Geologist and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity she 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). Ms Duggan consents to the inclusion in this announcement of the matters based upon her information in the form and context in which it appears.

Notes to Editors:

About the Panton PGM-Ni Project

The 100% owned Panton PGM-Ni Project is located 60kms 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 1km off the Great North Highway which accesses the Port of Wyndham (refer to Figure Three).

The Project hosts an independent JORC Code (2012) MRE of 129Mt @ 1.20g/t PGM_3E¹, 0.19% Ni, 0.04% Cu and 154ppm Co (1.66g/t PdEq²) at a cut-off grade of 0.90g/t PdEq² for contained metal of 5.0Moz PGM_3E¹, 239kt Ni, 48kt Cu and 20kt Co (6.9Moz PdEq²). The MRE includes a high-grade reef of 25Mt @ 3.57g/t PGM_3E¹, 0.24% Ni, 0.07% Cu and 192ppm Co (3.86g/t PdEq²) for contained metal of 2.9Moz PGM_3E¹, 60kt Ni, 18kt Cu and 5kt Co (3.2Moz PdEq²).

PGM-Ni mineralisation occurs within a layered, differentiated mafic-ultramafic intrusion referred to as the Panton intrusive which is a 12km long and 3km wide, south-west plunging synclinal intrusion. PGM mineralisation is hosted within a series of stratiform chromite reefs as well as a surrounding zone of mineralised dunite within the ultramafic package.

Figure Three | Panton PGM Project Location

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 1 | Sample Details

Sample locations and descriptions in GDA94 Zone 52S

pXRF analysis of samples

NB: ND refers to "Not Detected" by the pXRF; where the number of readings equals 1, the range has not been listed. 

* The high value of nickel relates to nickel oxide which is interpreted to be related to the weathering of nickel sulphide.

Appendix 2 | JORC Code (2012) Edition Table 1

Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results