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Figure One:
Project Location

Location

The Panton PGM Project is located 60 kilometres north of Halls Creek and just 1 kilometre off the Great Northern Highway, in the East Kimberley Region of Western Australia. The Great Northern Highway also provides direct access to the Port of Wyndham.

The Panton PGM Project is held under three granted Mining Leases (M80/103, M80/104 and M80/105) covering an area of approximately 23km2.

Project History

The Panton deposit was discovered by the Geological Survey of Western Australia from surface mapping conducted in the early 1960s. Initial drilling was conducted in the 1970’s and 1980’s to test the mafic-ultramafic complex. In 1989, Pancontinental Mining Limited and Degussa Exploration drilled a further 32 drill holes and defined a maiden non-JORC resource. Platinum Australia Ltd (Platinum Australia) acquired the Panton PGM Project in 2000 and conducted the majority of the drilling, comprising an additional 166 holes for 34,410 metres, leading to the delineation of a maiden JORC Mineral Resource Estimate. Platinum Australia completed a Bankable Feasibility Study for the development of the Panton PGM Project in September 2003, a time of historic lows in PGM prices. Platinum Australia’s focus then shifted to the development of PGM projects in South Africa and was placed into Administration in 2011. The Panton PGM Project was acquired by Panoramic Resources Ltd (Panoramic) in 2012 for the administrator of Platinum Australia Ltd. Panoramic conducted a wide range of metallurgical test work the Panton ore.

The JORC Mineral Resource was updated to be compliant with the JORC (2012) Code in August 2015. Future Metals acquired the project in June 2021, and during the first 12 months’ ownership in July 2021 announced an updated Independent JORC Code (2012) Mineral Resource Estimate of 5.0Moz palladium, platinum and gold and 238kt Ni, at a grade of 1.66g/t PdEq.

In October 2023, Future Metals announced an updated independent JORC Code (2012) MRE for its 100% owned Panton PGM-Ni-Cr Project with improvements in grade, JORC classification and the inclusion of a chromite estimate.

The total MRE at the Panton PGM-Ni-Cr Project is now 92.9Mt @ 1.5g/t PGM3E, 0.20% Ni, 2.7% Cr2O3 (2.0g/t PdEq) for contained metal of 4.5Moz PGM3E 185kt Ni, 2.8Mt Cr2O3, (6.0Moz PdEq). The MRE has been reported across three separate units; the Reef, the High-Grade Dunite and the Bulk Dunite. Refer ASX announcement dated 26 October 2023.

Mineral Resource Estimate

Panton Mineral Resource Estimate (MRE) Overview

The MRE at Panton has been substantially upgraded with improvements in grade, JORC classification and the inclusion of a chromite estimate. The total MRE at Panton is now 92.9Mt @ 1.5g/t PGM3E, 0.20% Ni, 2.7% Cr2O3 (2.0g/t PdEq) for contained metal of 4.5Moz PGM3E, 185kt Ni, 2.8Mt Cr2O3, (6.0Moz PdEq). The MRE has been reported across three separate units; the Reef, the High-Grade Dunite and the Bulk Dunite.

Table One | Panton Total Mineral Resource Estimate

Mass
(Mt)

 

PGM3E
(g/t)

Ni
(%)

Cr2O3
(%)

PdEq
(g/t)

92.9

Grade

1.5

0.20

2.7

2.0

 

PGM3E
(Moz)

Ni
(kt)

Cr2O3
(Mt)

PdEq
(Moz)

Contained Metal

4.5

185

2.8

6.0

The Reef component has an MRE of 10.8Mt @ 5.6g/t PGM3E, 0.27% Ni, 14.6% Cr2O3 (7.0g/t PdEq) for contained metal of 2.0Moz PGM3E, 29kt Ni, 1.6Mt Cr2O3 (2.4Moz PdEq).

Table Two | Panton Mineral Resource Estimate – High Grade Reef

Mass
(Mt)

 

PGM3E
(g/t)

Ni
(%)

Cr2O3
(%)

PdEq
(g/t)

10.8

Grade

5.6

0.27

14.6

7.0

 

PGM3E
(Moz)

Ni
(kt)

Cr2O3
(Mt)

PdEq
(Moz)

Contained Metal

2.05

29

1.6

2.4

The High-Grade Dunite component has an MRE of 26.4Mt @ 1.3g/t PGM3E, 0.21% Ni (1.8g/t PdEq) for contained metal of 1.1Moz PGM3E, 54kt Ni (1.5Moz PdEq). The High-Grade Dunite is the mineralisation which sits parallel to the reef mineralisation at the footwall and hangingwall contacts.

Table Three | Panton Mineral Resource Estimate – High Grade Dunite

Mass
(Mt)

 

PGM3E
(g/t)

Ni
(%)

PdEq
(g/t)

26.4

Grade

1.3

0.21

1.8

 

PGM3E
(Moz)

Ni
(kt)

PdEq
(Moz)

Contained Metal

1.0

54

1.5

The combined Reef and High-Grade Dunite mineralisation has an MRE of 37.2Mt @ 2.6g/t PGM3E, 0.22% Ni, 6.2% Cr2O3 (3.3g/t PdEq) for contained metal of 3..1Moz PGM3E, 83kt Ni, 2.2Mt Cr2O3 (3.9Moz PdEq).

Table Four | Panton Mineral Resource Estimate – Reef & High-Grade Dunite

Mass
(Mt)

 

PGM3E
(g/t)

Ni
(%)

Cr2O3
(%)

PdEq
(g/t)

37.2

Grade

2.6

0.22

6.2

3.3

 

PGM3E
(Moz)

Ni
(kt)

Cr2O3
(Mt)

PdEq
(Moz)

Contained Metal

3.1

83

2.2

3.9

The Bulk Dunite has an MRE of 55.7Mt @ 0.8g/t PGM3E, 0.18% Ni (1.2g/t PdEq) for contained metal of 1.4Moz PGM3E, 102kt Ni (2.1Moz PdEq). A detailed table for the Panton MRE is provided in Appendix One of Panton Resource Upgrade Delivers Opportunity for High-Grade, Long-Life Operation, released 26 October 2023.

The primary change between the previously reported MRE (reported 21 June 2022) and the upgraded MRE detailed in this announcement is more detailed geological modelling of the Reef mineralisation and the surrounding dunite into separate geological units. This detailed modelling was undertaken following breakthroughs in the Company’s metallurgical test work programmes as announced on 13 February 2023. Ore sorting has been demonstrated to be highly effective at separating the Reef from surrounding dunite mineralisation and waste material, and flotation test work has demonstrated the performance improvements of feeding separated material to the concentrator. The new MRE allows the Company to accurately model the volume and grade of different mineralisation types which can be mined and milled as part of the Scoping Study, which is focussed on the Reef and High Grade Dunite mineralisation.

Another key change to the MRE is the inclusion of a chromite (Cr2O3) estimate. This follows numerous successful metallurgical test work programmes demonstrating that a saleable chromite concentrate can be produced from the tails of the PGM flotation where the Ni-PGM concentrate is produced. The composition of Panton’s PdEq grade and its basket price where chromite provides a material contribution is shown below.

Isometric view of high-grade Panton with drill traces and resource blocks coloured by Resource classification

The proportion of mineralisation classified as Indicated has also increased with approximately 30% of the total MRE (and 41% of the Reef) now in the Indicated category compared to 6% in the previous MRE. This follows the inclusion of a number of recently completed drill holes which weren’t previously included, and improved metallurgical understanding and performance of the dunite mineralisation.

The Reef has been geologically constrained based on logging, PGM3E and Cr grades. The Bulk Dunite is reported at a cut-off grade of 0.9g/t PdEq and estimated down to a vertical depth of just ~150m (300mRL). The High-Grade Dunite has been reported below this depth, at a cut-off grade of 1.4g/t PdEq. This mineralisation occurs along the hangingwall and footwall contact with the reefs and has been reported down to the same depth as the Reef.

The new MRE was prepared independently by International Resource Solutions Pty Ltd and reported in accordance with the JORC Code (2012).

Breakdown of palladium equivalent and basket price per PGM3E ounce

Cut-off grades

A cut-off grade of 1.4g/t PdEq2 has been applied to the high-grade dunite estimate. A cutoff grade of 0.9g/t PdEq2 has been applied to the bulk dunite estimate. No differentiation between oxide and fresh rock has been made.  No cutoff grade has been applied to the chromitite reefs.

Palladium metal equivalents

Based on metallurgical test work completed on Panton samples, all quoted elements included in the metal equivalent calculation (palladium, platinum, gold, nickel and chromite) have a reasonable potential of being ultimately recovered and sold.

No metallurgical test work has been undertaken on recovering a chromite concentrate from dunite and this has been excluded from equivalent calculations for the High Grade Dunite and Bulk Dunite. The Company has not included copper or cobalt in its PdEq calculations however continued optimisation of metallurgical performance may warrant their inclusion in subsequent MRE updates. Similarly, the Company’s MRE does not include rhodium, iridium or osmium due to paucity of assay data however flotation test work has demonstrated the recovery of these valuable metals. The Company will examine whether resampling of existing drill core for these elements is warranted as it progresses the Project.

Metal recoveries used in the palladium equivalent (PdEq) calculations for each element are based on metallurgical test work undertaken to date at Panton. It should be noted that palladium, platinum and chromite 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 prices used are based on consensus forecasts of analysts estimates. The chromite concentrate price used is a conservative estimate based on historical pricing of South African chrome ore (40-42%, CIF China).

Metal recoveries used in the palladium equivalent (PdEq) calculations are shown below:

  • Reef: Palladium 80%, Platinum 80%, Gold 70%, Nickel 45% and Chromite 70%
  • Dunite: Palladium 75%, Platinum 75%, Gold 85% and Nickel 40%

Assumed metal prices used are also shown below:

  • Palladium US$1,500/oz, Platinum US$1,250/oz, Gold US$1,750/oz, Nickel US$20,000/t and US$175/t for chromite concentrate (40-42% Cr2O3)

Metal equivalents were calculated according to the follow formulae:

  • Reef: PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.833 x Pt(g/t) + 1.02083 x Au(g/t) + 2.33276 x Ni(%) + 0.07560 x Cr2O3 (%)
  • Dunite: PdEq (Palladium Equivalent g/t) = Pd(g/t) + 0.833 x Pt(g/t) + 1.322 x Au(g/t) + 2.2118 x Ni(%)

Metallurgical methods and parameters

As announced on 13 February 2023 ‘Mining and Processing Breakthrough at Panton and in the announcement on 11 July 2023 ‘Step Change in PGM Recovery – Improved to 86% the Company has successfully demonstrated the ability to produce a high-grade Ni-PGM concentrate with consistent PGM3E flotation recovery of ~80% to concentrate grades over 250g/t PGM3E. Recoveries for Ni have ranged from 37 – 45%. Recent test work by the Company has shown chromite recoveries of 70% to a concentrate grading between 40-42% Cr2O3 through flotation and magnetic separation on a composite of flotation tails. Flotation test work on dunite mineralisation has demonstrated recoveries in line with those stated in the Palladium metal equivalents section above.

The Company believes these results can be further optimised however they do support the development of a scoping level flow sheet. Further optimisation and variability test work will be undertaken as the Company progresses the Project past a scoping stage.

Exploration Upside

Panton’s Reef and High-Grade Dunite are open at depth and shallowing as they plunge to the south-west. Drill hole PS414 is on the largest step-out and demonstrates increasing grade and a potential thickening in the deposit as it flattens in its plunge. There is considerable potential to grow the high-grade Reef and High-Grade Dunite MRE through further drilling targeting down plunge extensions.

There is also potential to discover localised zones of economic mineralisation (such as more reefs) near the existing Reef modelled in the MRE. Drill hole PS291 demonstrates sulphide-rich mineralisation with significantly less chromite than the majority of the reef intersections which inform the MRE. This style of mineralisation is analogous to the Bushveld system in South Africa, where the sulphide-rich Merensky reef sits higher up in the stratigraphy than the chromite-rich UG2 reef.

The majority of the drill holes included in the MRE have only been sampled close to the upper and lower reef contacts. There was limited sampling of mineralisation above or below the reefs by prior owners, with geological logging providing multiple indications of chromite stringer reefs which have not been sampled (a potential marker for PGM3E mineralisation). The Company is currently completing a review of this historical logging to target holes of interest for follow up re-logging and portable X-Ray Fluorescence (“pXRF”), followed by sampling and assaying.

There is a significant amount of mineralised dunite within Panton which has not been included in the MRE. The area marked out as the Bulk Dunite Extension Zone has been drilled on wide spaced lines across ~250m, along a NE-SW strike of ~2.5km with all drill holes returning highly anomalous PGM3E, Ni and Cu mineralisation. Infill drilling and establishment of a metallurgical solution for this mineralisation would enable the Company to significantly grow the near surface Bulk Dunite MRE.

Figure Three:
Isometric View of High Grade Panton with Drill Traces and Resource Blocks Coloured by Resource Classification

Figure Four:
Isometric View of High Grade PGM Reef Looking North with Drill Traces and Resource Blocks Coloured by PGM3E Grade

Figure Five:
Cross Section A Block

Figure Six:
Cross Section C Block