FBM - Future Battery Minerals

[greggles]

A new claim at AOU's Nevada Lithium Project has increased its footprint by 50%. Permits for the maiden drilling program have been received and drill targets have been identified with drilling set to commence at the end of the month.

For all the missteps that this company has made, they have gotten this project drill ready relatively quickly. I have to give credit where credit is due. However, they need to really pull something out of the proverbial bag here to get the share price back to where it was in 2021. They are staking a lot on this project, so it had better deliver.

 

[greggles]

Some encouraging news from AOU today with shallow spodumene bearing intercepts reported from the first four drill holes from Phase 1 RC drilling at the Kangaroo Hills Lithium Project. Assays from 10 additional drill holes are still pending.

The results look good, especially the 29m intercept from 38m. The results from the other 10 holes will give us a better idea of the extent of the mineralisation in this particular area.

Follow up drilling is to commence immediately. Striking while the iron is hot is a good strategy in these volatile times IMO.

 

[System]

On March 27th, 2023, Auroch Minerals Limited (AOU) changed its name and ASX code to Future Battery Minerals Limited (FBM).

 

[Dona Ferentes]

And saying all the right things since the name change. Preso out and there is a bit of interest.

• Exciting new LCT pegmatite discovery with thick – shallow - high grade Li results. Aggressive Q2 2023 Lithium exploration programmes planned at Kangaroo Hills and Nevada
• Leveraged to future green nickel demand from friendly stable jurisdictions - High-grade nickel sulphide resources with potential to drive to near-term development and production

 

[greggles]

FBM (formerly AOU) finally showing some signs of strength. The Kangaroo Hills announcement from last week really kicked things off nicely and yesterday's Investor Presentation seems to have provoked further investor interest. The name change certainly better reflects their current focus and quite frankly is a much better name. Good branding is important, even on the ASX.

Lithium has come to the forefront and nickel seems to be taking a backseat. The shift of focus is arguably a positive development given FBM's price action recently.

 

[greggles]

FBM has delivered a positive scoping study for its Saints Nickel Project in WA. There has been very little news regarding Saints this year so it is good to see management are continuing to push the project forward.

Pre-production CAPEX has been estimated at a modest $8.688 million

A PFS is now planned although there is no estimated completion date for it as yet.

 

[greggles]

The good news keeps coming for FBM.

Those grades and widths look very impressive. Overall, a very good result for FBM and it is unsurprising that they are now prepping a follow up RC drilling campaign that is due to commence next month.

 

[greggles]

Phase 2 assay results from the Kangaroo Hills Lithium Project have returned thick and shallow intersections, expanding the project's mineralised footprint.

Results from the remaining 23 holes of the Phase 2 drilling campaign are still pending. Diamond drilling has now commenced with the first hole already underway.

 

[Dona Ferentes]

The good news keeps coming for FBM

 

[Dona Ferentes]

might have to change to Future Battery Mineral. ....[ one way to fund work ]

Sale of Nepean Nickel Project for $10 million in Cash

Highlights
• Future Battery Metals has executed an agreement for the sale of its 80% owned Nepean Nickel Project comprising tenements M15/709, M15/1809 and P15/5750 for a total cash consideration of $10 million.
• NNP tenements (non-lithium) sale settlement terms comprise a $0.1 million cash deposit (already received) and the payment of $2.7 million in cash upon completion, with the balance of $7.2 million in cash payable in stages over the next 24 months.
• The transaction will strengthen the Company’s cash reserves and will support funding of exploration at its 2 key lithium projects in Kangaroo Hills in WA and Nevada Lithium in the USA.
• The Sale Tenements do not include the Kangaroo Hills Lithium Project (KHLP).

 

[greggles]

might have to change to Future Battery Mineral. ....[ one way to fund work ]

Sale of Nepean Nickel Project for $10 million in Cash

Highlights
• Future Battery Metals has executed an agreement for the sale of its 80% owned Nepean Nickel Project comprising tenements M15/709, M15/1809 and P15/5750 for a total cash consideration of $10 million.
• NNP tenements (non-lithium) sale settlement terms comprise a $0.1 million cash deposit (already received) and the payment of $2.7 million in cash upon completion, with the balance of $7.2 million in cash payable in stages over the next 24 months.
• The transaction will strengthen the Company’s cash reserves and will support funding of exploration at its 2 key lithium projects in Kangaroo Hills in WA and Nevada Lithium in the USA.
• The Sale Tenements do not include the Kangaroo Hills Lithium Project (KHLP).

This is a really smart move by management for several reasons. Firstly, the reason that the share price has almost tripled recently is not because of nickel but because of lithium. Nepean has cost them a lot of money that could have been better spent elsewhere given that the share price declined substantially as they continued to explore there. It was turning into a money pit that was costing them far more than they could really afford.

Another good reason for offloading Nepean is that the cash from the sale will put to bed any discussion of further dilution anytime in the near future. They will now have enough cash to move their lithium projects forward for some time.

 

[greggles]

FBM moving rapidly on their Nevada Lithium Project with Phase 2 RC drilling set to commence in the first week of June.

Management appear to recognise that they need to get this project as advanced as they can before they need to raise capital again. It will be interesting to see what the Phase 2 drilling campaign reveals.

 

[greggles]

FBM moving quickly at the Kangaroo Hills Lithium project. Assay results from ~23 holes from Phase 2 drilling at the Big Red Prospect are due to be received any day now. Phase 3 RC drilling due to commence shortly following the identification of seven high priority targets.

I like the look of Kangaroo Hills but its too early to know exactly what FBM have here.

Share price is struggling to get and stay above 12c. Looks like it needs a catalyst to get through the resistance.

 

[Dona Ferentes]

FBM FULLY FUNDED WITH COMPLETION OF NEPEAN NICKEL PROJECT SALE

FBM has now completed the $10 million sale of the Nepean Nickel Project tenements to Rocktivity Nepean Pty Ltd. The NNP tenements comprise of M15/709, M15/1809 and P15/5750, and excludes the Kangaroo Hills Lithium Project, tenements in which FBM holds an 80% interest and Lodestar Minerals Ltd (ASX: LSR) holds the remaining 20%.

A cash consideration of $2.7 million was received upon Completion in addition to the $100,000 deposit received on signing, with the remaining deferred consideration of $7.2 million payable as follows:
• $2.7 million payable 12 months from Completion (June 2024);
• $2.5 million payable 18 months from Completion (December 2024); and
• $2 million payable 24 months from Completion (June 2025).

The Company is now fully funded for planned exploration activities at its two significant, 80% owned lithium projects, with activities including:
Kangaroo Hills Lithium Project
• Step-out drilling at the Big Red Prospect testing for extensions to the reported thick high-grade lithium intercepts;
• Systematic testing of the newly identified prospects at Western Grey, Eastern Grey, Rocky, Quokka, Wallaroo and Pademelon; and
• Ongoing target generative geophysics mineralogy and metallurgical test work.
Nevada Lithium Project
• Phase 2 reverse circulation drilling at Western Flats and Lone Mountain, testing for extensions to the recent thick, high-grade Li Claystone discovery; and
• Systematic testing of the Heller, Fraction and San Antonne prospects.

 

[greggles]

Some new assay results announced today from the Big Red Prospect at the Kangaroo Hills Lithium Project. It all looks encouraging but nothing spectacular, so some holders have taken the opportunity to "sell the news" today.

FBM down 6.67% since the open.

 

[greggles]

FBM in a trading halt this morning pending an announcement relating to exploration results. A trading halt is an unusual step for FBM as they haven't resorted to them previously when releasing good drilling results, so this announcement appears to be something out of the ordinary.

It could be bad news, but my money is on good news. An update from Nevada perhaps?

 

[greggles]

FBM has requested a voluntary suspension this morning pending the same announcement. Some at other venues are speculating that this trading halt is somehow connected with the LSR trading halt, but the two pending announcements are described as concerning "exploration results" (FBM) and "the sale of a material asset" (LSR), so they do not appear connected but who knows?

All will become clearer tomorrow.

 

[greggles]

Announcement has been released and the news looks good. Very thick widths indicating a large mineralised footprint. I am no expert on lithium deposits but grades of around 1000 PPM are supposed to be about average with 1600 PPM considered the "gold standard" so the grades look economic but not exceptional.

Mineralisation is near surface which should improve the project economics as it will be easier to get out of the ground. Share price is up a modest 19% at the open. Will be interesting to see how it goes in the coming weeks.

 

[Dona Ferentes]

And cleaning up the process .... full speed ahead .
.

LODESTAR: DIVESTMENT OF 20% INTEREST IN KANGAROO HILLS LITHIUM JV
HIGHLIGHTS
➢ Sale of interest for $3.5M in cash and shares plus $3M in performance rights to Future Battery Minerals
➢ Exposure to 100% of FBM’s lithium and nickel project portfolio
➢ Lodestar to become a significant shareholder in FBM
➢ Eliminates Lodestar’s financial commitment to the JV

 

[greggles]

The Kangaroo Hills Lithium Project is firming up for FBM with recent diamond drilling intersecting spodumene bearing pegmatites. Assays for 50 more holes from the phase 3 drilling campaign remain outstanding so we should have more results through soon.

RC drilling has commenced at the Rocky Prospect and further diamond drilling is currently being planned at the KHLP.

Lots of activity going on so there should be a lot of news flow for the rest of 2023.