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Highlights
- Major drilling has been undertaken at Xanadu project, with further exploration planned.
- Multiple new mineralised gold structures were discovered at Brimstone with the completion of aircore drilling program.
- A joint venture was formed with Chalice Mining for Mt Narryer project.
- Platina Scandium project was sold to a subsidiary of Rio Tinto for a consideration of US$14 million.
Throughout the financial year 2023, Platina Resources Limited (ASX: PGM) advanced its gold exploration projects located in the premier mining jurisdiction of Western Australia.
Notably, after the financial year 2023 (FY23) end, the company sold its interest in the Platina Scandium Project (PSP) for a consideration of US$14 million, representing its strategic shift towards gold projects. Read more.
Drilling advances at Xanadu Gold project
Image source: Company PPT
The Xanadu project lies adjacent to a million-ounce resource, including the Mt Olympus deposit of Kalamazoo Resources. The project comprises six exploration and seven prospecting licences for 554 km2.
Historically, shallow drilling and gold heap leach operations have been conducted on the project; however, the intercepts were never followed up with a systematic exploration program, reflecting the significant potential of the project.
After extensive exploration, multiple drill targets were defined at Xanadu. In FY23, a maiden reverse circulation (RC) program of 2,214m indicated gold mineralisation from the untested ground at depth and up to 900m on strike. Since limited drilling has been undertaken on the project, anomalous gold was reported in most of the holes, along with significant assay results.
The most significant results included 7m @ 1.05g/t Au from 168m (XARC005) and 8m @1.79g/t Au from 38m (XARC009).
During the period, the company discovered the Hermes prospect in the project area, which comprises a 1km gold mineralisation structure and several parallel zones within an 80m (up to) wide mineralised corridor.
Subsequent to the reported period, the company made progress towards drilling plans, earthworks and statutory and cultural heritage approvals. This would allow numerous drilling campaigns at the project, such as diamond drilling at Xanadu Deeps and RC drilling at Xanadu West and Hermes.
RC drill at Hermes was completed in September 2023 with assays anticipated this month.
Brimstone RC drilling on the cards
The Brimstone project is located close to the Penny’s Find deposit. Historically, around AU$5 million has been spent on the project, with more than 964 holes drilled, covering 51,638m. The depth of the holes drilled was less than 50m. Since the historical work has never been followed up, it offers an immense opportunity to the company.
In FY23, a 4,381m maiden drilling program indicated several new mineralised gold structures across the project. The program discovered a mineralised 350m structure at Brandy Prospect, with the potential to extend up to the length of 800m. Also, mineralisation was identified at the Billabong North prospect. Mineralisation was intersected at eight out of 14 drill holes on the Brandy prospect and in four out of nine holes at the Billabong North prospect.
Following these positive outcomes, the company plans to conduct an RC drilling to locate higher-grade and broader intersections.
To read about the latest update on Brimstone project, click here.
Drilling plans for Beete Gold project
The Beete project lies on interpreted geophysical structures that the company believes to host gold mineralisation.
During the reported period, the company undertook a soil sampling program aimed at defining target areas for follow-up drilling. The company plans to conduct an RC drill campaign at Beete Mine, expected after the end of the wet season, late in 2023.
Joint venture for Mt Narryer
Mt Narryer is situated 580km north of Perth, Western Australia. Historically, no intensive mineral exploration has been undertaken in the project area.
In FY23, the company formed a joint venture with Chalice Mining Limited (ASX:CHN), under which Chalice would earn a 51% interest in the project after spending AU$0.6 million over two years and spending a minimum of AU$0.15 million in the first year.
The agreement allows Chalice to earn a further 24% interest by spending AU$1.8 million in the following two years. Read more.
The other gold projects of the company are Jubilee project, Challa project, and Binti Binti Projects.
All in all, Platina Resources advanced with exploration across its gold projects in FY23. The plans for drilling, along with the progress in obtaining statutory and cultural heritage approvals, seem to be at an advanced stage.
PGM shares traded at AU$ 0.026 on 3 October 2023.