With the diamond drill programme underway at Panton – every hole so far drilled has intersected sulphide mineralisation indicating that Future Metals could be on the cusp of a game-changing discovery
If we wound back a few years before the pandemic, the news that Future Metals have put out since the start of their drilling campaign last month would have caused major excitement due to what they seem to be un-covering!
The market at the minute however is some what ‘sedated’ by macro events and I’ve talked about this in recent blogs!
That said as investors we continue to look for those special opportunities that can make a significant impact on the portfolio whilst of course acknowledging overall risks.
You can read my full research note on Future Metals here where I go into detail on their Panton PGM project (the second largest in Australia) and the exploration that is currently underway.
Sulphide Intercepts define new target zone at Panton
Last week Future Metals announced that further drilling 4km south-west of the main Panton PGM project had again intercepted sulphide mineralisation and that the drilling demonstrates prospectively of a new mineralised zone. This is on top of the initial drilling that has confirmed sulphide mineralisation at Panton.
All six of the diamond drill holes have now intersected sulphide mineralisation which is pretty exciting given they are yet to drill the keel target zone which sits beneath the high grade chromite reef PGM target with a JORC Resource of 6.9Moz.
One of the holes to be drilled is part-funded by the Australian Government and will be a deep hole into the keel and that is expected to be complete around year end.
What does all this mean?
It means that Future Metals could be on the cusp of confirming a major Copper/Nickel/PGME sulphide system at Panton.
You’ve probably been reading about the likes of nickel and copper and how inventories are falling and the fact they are critical to the ‘green revolution’ whether that be EV’s, energy storage, charging infrastructure, solar etc etc.
There is no doubt in my mind that if Future Metals confirm a major sulphide system that this will attract interest from a major, especially given the top jurisdiction, Australia. In fact you only need to look at the likes of Anglo who are partnering with Arc Minerals in Zambia, a higher risk jurisdiction in order to secure future inventory.
So for Future Metals and investors this is a ‘special moment’ as the drill bit continues to turn until the end of the year with formal assays following in Q1 2023.
This along with a scoping study that will show an initial plan to develop the Panton PGM project.
There is some good detail in the recent RNS which I’d encourage you to read. Drilling of the highly prospective keel position should be commencing around now so look out for news on this!
Technically, I believe the current entry level at c.£20m cap (7p) is compelling given the chart seems to have ‘bottomed-out’ with the company also well funded via the recent raise.
I’m targeting a potential return to the 14p area on delivery of the scoping study but if further drilling and closure of the campaign confirms a major discovery all bets are off as I believe the company would command a valuation of many multiples of the current price.
In fact I believe the existing PGM project values this company at multiples already but the market decides of course!
As mentioned previously if you want a higher level update on the company and its projects and why I am invested, you can read my full research note on Future Metals here
Don’t forget to follow me on twitter for more updates https://twitter.com/TheMoneySponge
Research materials prepared based upon my own analysis and research. Accuracy cannot be guaranteed and research notes should not be taken as investment advice. Please always do your own research.