ASX-listed Future Metals has started a detailed engineering assessment of the Savannah processing plant as part of a revised strategy to develop its Panton platinum group metals (PGM) project in Western Australia in a more capital-efficient manner.

The review follows a memorandum of understanding signed in April last year with Zeta Resources, the owner of the Savannah asset and Future Metals’ largest shareholder, to assess the technical, economic and regulatory suitability of utilising the existing plant to process ore from Panton.

The Savannah plant, located within trucking distance of the Panton project, has been on care and maintenance since nickel operations ceased in January 2024.

Future Metals management and engineering consultants ResourcesWA and VantageEng conducted a site visit from February 16 to 19, with detailed discipline inspections continuing this week.

The company reported that the initial review concluded the plant is structurally sound, with key equipment – including the primary crusher and SAG mill – in good condition. However, refurbishment will be required across mechanical, electrical and control systems.

Future Metals added that there is sufficient space within the existing plant footprint to install additional equipment required to treat Panton material. The tailings storage facility was described as being in good condition, with scope for wall raises to expand capacity, while associated infrastructure such as the power plant, offices and camp are also considered restart-ready.

MD Keith Bowes said the site visit confirmed the asset’s potential to underpin a lower-capital development pathway.

“The visit to the Savannah plant was extremely valuable, the plant is generally in good condition with the current care and maintenance programme being undertaken by Panoramic ensuring that key equipment such as the SAG mill is being kept in good condition. The team onsite are great and have been associated with the operation for many years so have significant operarational experience that will be critical to ensuring any restart.

"I was also impressed with the associated infrastructure including the power plant and tailings storage facility which are all in good condition and can be restarted easily. I look forward to receiving the final assessment from the engineers and consultants which will allow us to define the potential cost savings for the project, the execution strategy and timing that could be achieved by pursuing this option," reported Bowes.

An earlier in-house desktop assessment suggested that using the Savannah facility instead of constructing a greenfield plant at Panton could reduce upfront capital costs by more than 40% compared with the 2023 scoping study estimate. The company said this assumption remains valid, subject to completion of the detailed inspections.

Under the concept being assessed, an openpit would be developed at Panton, with mineralised material trucked to Savannah for processing. Underground development would follow to sustain mill feed, while tailings would be stored at the existing Savannah facility. Minimal infrastructure would be required at Panton, with most support infrastructure already in place at Savannah.

In parallel, Future Metals is advancing a revised mineral resource estimate for Panton aimed at emphasising its high-grade platinum potential and ensuring compliance with JORC requirements for realistic prospects for eventual economic extraction. The company is also reviewing historical drill data for rhodium potential, defining environmental and permitting requirements, and assessing infill drilling to convert a portion of inferred resources to higher confidence categories.

Exploration work continues within the Alice Downs Corridor, where the company is reviewing historical data to identify copper targets for follow-up fieldwork and drilling.

Next steps include completion of the engineering inspections, updating capital and operating cost estimates, undertaking a like-for-like economic comparison with the 2023 scoping study, and preparing a permitting work programme. Should the outcome prove favourable, discussions with Zeta regarding a pathway forward will be initiated.