Platina Resources (ASX: PGM) posted encouraging results in 1HFY24 across Brimstone and Xanadu project - Kalkine Media

Highlights

• Extensions to the mineralisation confirmed at the Garibaldi prospect via the second phase RC drilling.
• Major mineralised structure presence confirmed at the Brandy prospect.
• At the Central Xanadu project, a large-scale gold system more than 600m x 600m open in all directions was confirmed.
• A binding farm-in agreement was signed with Chalice Mining for the Mt Narryer project.

ASX-listed mineral resource development and exploration firm, Platina Resources Limited (ASX: PGM) made significant strides across its projects in the first half of the financial year 2024 (1HFY24).

During the six months, drilling at the Brimstone Gold Project confirmed the extension of mineralisation and large-scale gold system presence at Xanadu Project, a joint venture was signed with Chalice Mining for Mt Narryer Project and the Platina Scandium Project (PSP) was sold off to a subsidiary of ASX-listed company Rio Tinto.

Mineralisation potential at Brimstone Gold Project confirmed

Located in Kalgoorlie, the Brimstone Gold Project lies in close proximity to the Find gold deposit of Penny and 25km from the Kanowna Belle gold mine.

During the six months, the company informed that the second phase of RC drilling confirmed extensions to the mineralisation at the Garibaldi prospect. Additionally, the program highlighted the Brandy and Old Camp prospects potential to host additional mineralisation. Multiple high-grade gold mineralisation at Garibaldi were reported, along strike and down plunge. Now, the system is interpreted to extend more than 200m in strike and open at depth.

At the Brandy prospect, the company has confirmed the presence of a major mineralised structure.

The drilling program at the Brimstone Project has expanded the areas of mineralisation. Garibaldi prospect offers significant expansion opportunities and further drilling is necessary to expand the size of this deposit. Moreover, additional drilling is necessary to examine the potential of the Brabdy prospect along the strike and depth.

RC drilling commences at the Xanadu Project

The project is located near the multi-million-ounce Mt Olympus gold deposit. Mainly shallow drilling programs have been conducted at the project and a historical gold heap leach operation.

During the reported period, RC drilling at the Hermes prospect confirmed the presence of large-scale gold system, which is more than 600m x 600m and open in all directions. At Hermes, the mineralised zone to the south of the mapped 1km mineralised corridor was found dip in all directions and open along strike. Two holes intersected significantly mineralised wide zones.

Also, a potential northern zone was intercepted, and five out of seven holes intersected wide anomalous gold value over an around 600m strike length within a 35 – 40m wide corridor. The company intends to undertake further field work at Hermes to develop the targets.

After the end of first half, the company announced about the commencement of RC drilling over 13 holes to evaluate the Amphitheatre West extension, Claudius as well as geophysical targets at Cleopatra and Caesar, and strong arsenic in rock chip anomaly at Pompeii.

Joint venture for the Mt Narryer Project

In March 2023, the company had inked a joint venture with Chalice Mining on the Mt Narryer Project, Wester Australia. As per the terms of the farm-in agreement, Chalice would earn 51% interest in the project by investing AU$600,00 in two years and need to invest minimum AU$150,000 in the first year. The company can earn further 24% interest by spending additional AU$1.8 million in another two years.

With this, PGM would then continue to be free cost carried to conclude pre-feasibility study.

Sale of Platina Scandium Project

During the reported period, the company completed the sale of PSP to a subsidiary company of Rio Tinto Ltd, Rio Tinto EN21 Op Co Pty Limited, for which it received US$7 million in cash. The transaction includes US$1 million warranty retention payment which Rio Tinto would re-pay in case of no breach is held on trust.

PGM might receive further payment of US$6 million if Rio Tinto achieves project milestones such as mining lease grant.

PGM shares last traded at AU$0.018 apiece on 04 March 2024.