Future Metals’ MoU with Zeta could fast-track Eileen Bore and Panton development

Future Metals could process ore from its Eileen Bore and Panton deposits at Zeta Resources’ Savannah nickel processing plant.

Future Metals could accelerate development of its Eileen Bore copper-nickel-PGM and Panton PGM deposits. Pic: Getty Images

• Future Metals signs MoU with Zeta Resources that could accelerate development of Kimberley region deposits

• Eileen Bore and Panton deposits to be assessed for potential processing at Savannah nickel mine processing plant

• Company to raise $4.2m to advance development of Eileen Bore into a bulk copper feed source for Savannah

Special Report: Future Metals has signed an MoU with Zeta Resources that could accelerate development of its Eileen Bore copper-nickel-PGM and Panton PGM deposits in WA’s Kimberley region.

The MoU will assess the technical, economic and regulatory aspects of using the processing plant at Zeta’s nearby Savannah nickel mine to process ore from the two deposits.

This will involve ongoing feasibility analysis, based on the availability of technical and economic information.

Should the assessment yield positive results, the parties will negotiate in good faith for a suitable commercial structure for future operations involving a combination of Future Metals’ (ASX:FME) ores and Savannah’s processing plant.

The Savannah processing facility has a processing capacity of 1Mtpa and consists of a standard sulphide flowsheet including a primary crusher, cyclone and flotation circuit. It is currently on care and maintenance.

As part of this agreement, FME is raising up to $4.2m before costs to advance development of Eileen Bore into a bulk copper feed source for the Savannah plant.

This consists of a $1.58m placement at 1.1c per share cornerstoned by Zeta, which will emerge with a 9.9% stake in FME, and a one for three rights issue for existing shareholders under the same terms to raise up to $2.64m.

The Eileen Bore and Panton deposits. Pic: Future Metals

Panton and Eileen Bore

Panton is 60km north of Halls Creek and Eileen Bore is in the Alice Downs Corridor that is within a 20km radius of Panton.

Panton was first discovered by the Geological Survey of Western Australia from surface mapping in the early 1960s and initial drilling was conducted in the 1970s and 1980s to test the mafic-ultramafic complex.

This, and a further 32 drill holes, led to the definition of a maiden non-JORC resource by Pancontinental Mining and Degussa Exploration in 1989.

Regional setting of the Panton PGM project, Savannah Mine and the Port of Wyndham. Pic: Future Metals

FME updated the resource in October 2023 to 92.9Mt grading 1.5g/t PGM, 0.2% nickel and 2.7% chromium oxide.

Meanwhile, recent drilling at Eileen Bore confirmed that significant copper-nickel mineralisation is present after returning assays of up to 30m at 1.06% copper, 0.45% nickel and 1.14g/t PGM from 88.9m.

The results were combined with a recent ground gravity survey to determine that Eileen Bore mineralisation sits within a faulted section of a newly defined 4.5km northeast trending intrusion.

FME believes this newly defined intrusion represents a significant advancement in the potential of the Eileen Bore prospect and that there is significant scope for expansion in the size and grade of mineralisation.

This article was developed in collaboration with Future Metals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Future Metals’ MoU with Zeta could fast-track Eileen Bore and Panton development