Platina Resources (ASX: PGM) reports busy September quarter with drilling at Xanadu and Brimstone gold projects - Kalkine Media

Highlights

• Sale of scandium project closed in the September quarter for US$7 million.
• Drilling at Xanadu’s Hermes prosect led to the discovery of a 1km gold mineralised corridor.
• At Brimstone project, Phase 2 drilling has been completed.

Platina Resources Limited (ASX: PGM) registered significant progress across its projects during the quarter ended 30 September 2023. The latest quarter witnessed the completion of drilling at the Xanadu Gold project, Phase 2 drilling at the Brimstone Gold project and sale of the scandium project.

RC drilling campaign completed at Hermes prospect

During the latest quarter, the company concluded a reverse circulation (RC) drilling campaign at Xanadu’s Hermes prospect for 2,272 metres. The mineralisation style of Hermes mirrors the nearby Kalamazoo Resources Ltd’s Mt Olympus gold deposit, which has reported a mineral resource of 1.44 million ounces.

In June 2023, field geological mapping, channel and rock chip sampling were conducted at the prospect. The mapping and sampling results confirmed a 1km gold mineralised corridor with rock chip assays of up to 4.22 g/t Au. Seven samples delivered greater than 0.5g/t Au.

The mineralisation’s orientation is parallel to the west-north-west trending Howie’s Hole fault, which runs in the vicinity of the Zeus and Mt Olympus gold deposits.

Phase 2 RC drilling campaign concluded at Brimstone

During the latest quarter, a Phase 2 RC drilling program covering 3,300m was concluded at the Brimstone project. The program was focused on priority targets and followed a maiden air core drilling program for nearly 4,300m.

An air core drilling program was conducted at the beginning of 2023, and it identified a 350m long mineralised structure at the Brandy prospect, which has shown the potential to extend up to 800m in length. The mineralised structures are open down dip and along strike.

Sale of scandium project

In the September quarter, the company closed the scandium project sale to Rio Tinto Ltd’s subsidiary company for a cash consideration of US$7 million.

PGM might receive an additional US$6 million if Rio achieves project milestones such as granting of a mining lease.

With this development, the company has shifted its focus completely to gold projects.

PGM also shared its plans to complete two phases of drilling at its Beete gold project after receiving cultural heritage and landowner clearances. Landowner agreements were concluded during the quarter, while heritage clearances are pending for the RC and aircore program.

PGM shares traded at AU$0.022 apiece on 25 October 2023.