FBM’s Focused Strategy Risks Delay if Drilling Fails to Confirm Lithium Targets

Exploration Breakthroughs at Miriam

Future Battery Minerals Ltd (ASX: FBM) has delivered a promising update on its Coolgardie Lithium Projects in Western Australia, revealing a substantial 750-metre extension to the lithium anomaly at its Miriam Project. This discovery builds on previous soil sampling efforts, expanding the known lithium footprint by approximately 450 metres northwards and identifying four additional anomalous zones that align with geophysical targets. These findings suggest the presence of multiple subsurface lithium-caesium-tantalum (LCT) pegmatites, which are prime targets for future drilling.

The company has submitted a Program of Works for an initial Reverse Circulation (RC) drilling campaign, slated to commence in the first half of 2025. This drilling will focus on the +1.5 km soil anomaly that correlates with known spodumene outcrops and geophysical data, aiming to delineate the thickness and orientation of the mineralised system. The results will be critical in shaping subsequent exploration phases.

Strategic Royalty Acquisition and Project Focus

In a strategic move to consolidate its interests, FBM executed an option agreement to acquire an existing 2% Net Smelter Return (NSR) royalty over the Miriam Project, covering all mineral rights including gold and lithium. The option, exercisable within 12 months for an additional A$65,000, positions FBM to capture greater value from any future production.

Simultaneously, the company has divested its 80% stake in the Nevada Lithium Project for A$4 million in cash, a transaction completed in November 2024. This sale underscores FBM's sharpened focus on its Australian lithium assets, particularly the Coolgardie portfolio, which benefits from excellent regional infrastructure and a proven operational team.

Expanding Footprint in Western Australia’s Goldfields

FBM is actively expanding its landholdings in the Western Australian Goldfields, submitting new tenement applications covering an additional 45 square kilometres near its existing Coolgardie projects. These include the Burbanks East and Nepean South areas, which present promising gold and lithium exploration potential. Preliminary evaluations at the Kal North tenement have also highlighted robust gold discovery prospects, with rock chip samples confirming low-order anomalism and no prior drilling recorded.

The company is advancing heritage protection agreements and progressing tenement grants, aiming to integrate these new assets into its broader exploration strategy. Desktop studies and ground investigations are planned for early 2025 to refine target prioritisation.

Financial Strength and Operational Readiness

FBM enters 2025 with a strong balance sheet, holding approximately A$7.8 million in cash and zero debt, excluding trade creditors. Exploration and evaluation expenditure for the December quarter was A$302,000, reflecting disciplined capital deployment focused on advancing key projects. Administrative and corporate costs amounted to A$443,000, with payments to related parties disclosed transparently.

Managing Director Nicholas Rathjen emphasised the company’s cost-effective exploration approach and the strategic benefits of its recent transactions. He highlighted the potential for a belt-scale lithium and gold discovery in the Coolgardie region, supported by a robust pipeline of drill targets and a well-funded exploration program.

Looking Ahead

With the ground gravity survey at Miriam nearing completion and drilling approvals secured, FBM is poised to unlock further value from its Coolgardie Lithium Projects. The company’s dual focus on lithium and gold exploration, combined with strategic land acquisitions and a strong financial position, sets the stage for an active and potentially transformative year ahead.