- Platina Resources continues to implement its newly developed strategy to boost its gold exploration footprint in Western Australia.
- The company is awaiting results from drilling programs across its gold portfolio.
- Platina entered a conditional deal to acquire Sangold Resources and gain access to the Brimstone, Beete, and Binti Binti gold projects.
- The company remains committed to unlocking the value of its world-class Platina Scandium Project in New South Wales.
Australia-based Platina Resources Limited (ASX:PGM) continued its focus on building a significant gold exploration company during the year ended 30 June 2022. The period saw extensive groundwork to implement the company’s newly developed strategy focusing on gold exploration in the tier 1 mining jurisdiction of Western Australia (WA).
The ASX-listed gold-focused explorer has a portfolio of precious and speciality metal projects, in addition to investments at various stages of exploration and development.
PGM project portfolio (image source: PGM update)
Building WA gold footprint – drilling, project acquisition, and new licence
Development activities at many of the company's projects required a long list of statutory approvals, including cultural heritage and archaeological clearances. All these compliances were taken care of by the company's board, led by Managing Director Corey Nolan. The board worked endlessly with many backlogged government departments to keep the projects up and running.
The approach in FY22 led to developments across many projects. Subsequent to the reported period, the company initiated drilling operations at the Challa and Xanadu gold projects. The company eagerly awaits the drilling results across its portfolio of projects.
Moreover, the company applied for an exploration licence for the Jubilee tenement and entered a conditional deal to acquire Sangold Resources Pty Ltd. The acquisition deal boosts Platina's WA gold footprint by giving it full ownership of the Brimstone, Beete, and Binti Binti gold projects in the Eastern Goldfields district.
All these projects are located in Western Australia.
Sharpening focus on gold assets with Munni Munni sale
In March this year, the company completed the sale of its 30% interest in the Munni Munni platinum project to Alien Metals (AIM:UFO), an exploration and mining project developer. The transaction is valued at AU$0.25 million in cash and AU$1.98 million worth of Alien shares.
This development boosted the company’s financial position, aiding to finance gold exploration activities and allow Platina shareholders to share in any upside achieved by Alien at Munni Munni via its shareholding in Alien.
Unlocking the potential of NSW scandium project
Platina is committed to unlocking the value of its world-class Platina Scandium Project (PSP) in New South Wales (NSW). The company is following its new development strategy to pursue the development of a master alloy production intellectual property (IP) and a two-phase market entry strategy.
The market entry strategy aims to develop a commercial-scale master alloy production facility using scandium oxide feedstock purchased from a third party. The company will exercise this strategy until the market size or security of oxide supply warrants the PSP development.
The stakeholder engagement program continued throughout the year to secure operating permits at Condobolin and the Red Heart Mine site.
The company’s prime objective at present with regard to the PSP is to secure production offtake agreements, which will enable project financing options to be pursued for construction funding.
To further expedite the process and strengthen the operational team, the company appointed Mr Rohan Deshpande as its Perth-based exploration manager in March 2022.
Mr Deshpande, an experienced gold geologist, was previously associated with the multimillion-ounce Hemi Gold Deposit in the Pilbara as one of the discovery team leaders.
Platina plans to execute drilling programs at existing projects during the ongoing financial year FY23.
In addition, the company is focused on completing the due diligence and finalising the acquisition of Sangold Resources Pty Ltd. This will help align the exploration activities at the Brimstone, Beete, and Binti gold projects, which currently come under Sangold’s ownership.
PGM shares traded at AU$0.019 on 7 October 2022.