Platina Resources Steps Ahead with Robust Projects; Signs MoU with Traxys Europe S.A and Appoints Exploration Manager

Platina Resources Limited (ASX:PGM) is a metals and mining sector player from Australia, engaged in advancement of its international portfolio of early-stage precious and specialty metal projects right from exploration, feasibility through permitting and into development and production. The company has a special focus on the platinum group metals (PGM) and the strategic metal-scandium.

Mergers & Acquisitions (M&A) Strategy (Source: Investor Presentation January 2019)

Let’s take a detailed look at Platina’s operations:

1- Platina Scandium Project (Owendale) (100%-owned)

PSP or Platina Scandium Project is the company’s flagship project located in central NSW, Australia and one of the biggest high-quality scandium deposits in the world. Platina proposes to develop the PSP in stages, each designed to meet the market capacity while minimising technical and financial risk.

(Source: Investor Presentation January 2019)

In December 2018, the company finished the Definitive Feasibility Study (DFS) for the project that revealed a compelling technical and financial case for building a simple, low-strip ratio, open-cut mining operation alongside a processing facility where scandium oxide would be produced.

The key findings of DFS include the following

• Robust Financials — Mine life: 30 years; Post-Tax NPV of 8% in real terms: AUD 234 million; Post tax IRR of 29% and payback period of 5.3 years based on average scandium oxide price of USD 1,550/kg.
• Low Capital Expenditure – Stage 1: AUD 67.8 million (Initial scandium oxide production: 20 t/y) and Stage 2: AUD 15.6 million (expandable production to 40 t/y).
• High-grade, Large Resource Base— The very large and high-grade scandium resource is the strength of the project.

• Access to Infrastructure – The processing facility will be built at an existing industrial site in Condobolin with access to conducive infrastructure – labour, water, power, rail, and sealed roads which would make the permitting process simple with waste neutralized and returned to the mine.
• Sustainability and Community Benefits – The project is expected to deliver state, environment and community benefits such as small project footprint, creation of jobs and infrastructure investment along with driving innovation in mining, processing and exploration solutions.

Memorandum of Understanding (MoU) with Traxys Europe S.A

On 24 September 2019, Platina Resources announced to have signed a Memorandum of Understanding (MoU) with Traxys Europe S.A to cooperate and work together to assess scandium product and market development, and to assist with arranging potential funding for the company’s Platina Scandium Project in NSW, Australia. The MoU is valid for 6 months.

Traxys Europe S.A is a 100% owned subsidiary of Traxys S.A.R.L., which is a leading sales, marketing, sourcing, and supply-chain management company with ~USD 8 billion of annual revenue.

The deal was initiated and supported by a leading independent boutique IB, Jett Capital Advisors LLC.

Trials with New Low-Cost Technologies

Recently, Platina Resources announced that it is taking up trials with new low-cost technologies such as small-scale vat leach technology to process nickel laterite ores into scandium to achieve a reduction in capital costs estimates and enhance revenue streams of the project. With the expansion of the market for scandium, Platina Resources would perhaps opt for HPAL process to achieve better scandium recovery along with nickel and cobalt and an alumina by-product.

Platina is currently expediting Environmental Impact Assessment, Mining Licence Application (MLA), Development Applications (mine and process plant), and working on signing offtakes and secure financing for the project. During the June 2019 quarter, the company submitted an MLA for approval.

2- Skaergaard Project (100%-owned)

The project, located in Greenland, is one of the world’s largest undeveloped gold and palladium resources outside of Russia and South Africa, with a JORC (2012) Resource of 203Mt @ 0.88g/t Au and 1.33g/t Pd (0.69Moz platinum, 8.67Moz palladium and 5.69Moz gold). Around AUD 16 million has already been spent on 35,000 m of diamond drilling metallurgy and studies.

A potential extension of the Skaergaard Project is the Qialivarteerpik Multi-Element Project encompassing two significant project regions – Miki Fjord Dyke and Sortekap Greenstone Belt.

A scoping study for the Skaergaard Project is currently underway to define an optimal development strategy and path forward for the project.

3- Munni Munni PGM (platinum group metals) and Gold Project (30%-owned)

The project is located in Western Australia’s Pilbara region and has the potential for conglomerate hosted gold and is a Joint Venture with Artemis Resources Limited. Its Measured, Indicated and Inferred Mineral Resource stands at 23.6Mt at 1.1g/t gold and 1.5g/t platinum.

4- Blue Moon Zinc Project

Very recently on 29 August 2019, Platina Resources announced to have reached an agreement for earning up to 70% interest in the Blue Moon Zinc Project located in the United States while also gaining charge of operations. More on the transaction, investment proposition and the company’s strategy to progress with the Blue Moon Zinc Project may be READ here in detail.

On 25 September 2019, Platina Resources announced the appointment of Dr Gustavo Delenda as Exploration Manager for the project. Dr Delenda is a senior geologist with over 23 years’ experience in the evaluation, exploration and development of mineral deposits in a range of mineralisation styles (epithermal, porphyry, volcanogenic massive sulphide, lithium pegmatite) located in Australia as well as across South and North America.

He would be managing the drilling and exploration program for the high-grade, zinc-copper-gold project as part of Plana’s earn-in JV with TSX-V listed Blue Moon Corporation.

Platina Resources is progressing ahead with its plan and to advance its robust project portfolio, the company, in August 2019, announced the following fund raising initiatives-

• Share Purchase Plan (SPP) to raise AUD 1.25 million, and
• Proposed Top up placement to raise AUD 1.25 million

Stock Performance

Platina Resources has a market capitalisation of round AUD 8.45 million with ~ 264.13 million shares outstanding. On 25 September 2019, the PGM stock price settled the day’s trading at AUD 0.029.

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