Platina Resources Discusses “Going for Gold” Strategy, Releases Investor Presentation  

Summary

• Platina Resources has redirected strategy from overseas assets to Australian gold amid travel and lockdown restrictions worldwide due to the COVID-19 pandemic and record gold prices.
• Two new and promising projects - Challa Gold Project and Mt Narryer Project have been acquired in the world-class Yilgarn mineral province of Western Australia.
• Transaction between Platina and Major Precious Metals Corp for Skaergaard Gold & PGM Project is progressing towards completion.
• Munni Munni is one of the country’s largest underdeveloped palladium deposits, as confirmed by notable intersections of palladium, platinum and gold.

Australia-based company Platina Resources Limited (ASX: PGM) manages a portfolio of speciality, precious and base metal projects at several stages of development. PGM is committed to creating shareholder value by advancing early-stage metal projects through the process of exploration, feasibility, approvals to the development stage. The Company seeks to realise project value through sale, joint venture, or development.

On 25 August 2020, Platina Resources released an investor presentation, majorly highlighting its strategy towards expanding gold footprint in the proven provinces of Australia. The presentation covered critical details of activities undertaken by the Company in line with its renewed focus, along with other key projects.

Must read: Going for Gold: Platina Resources' Strategic Shift Towards Expanding Australian Gold Footprint

Renewed Strategic Focus "Going for Gold" Amid Robust Gold Prices

PGM has redirected its focus towards Australian gold from overseas assets amid increased global travel and lockdown restrictions due to the coronavirus pandemic. Record gold prices drive the strategy to expand gold portfolio in the country's proven gold provinces.

The Company included two new projects - Challa Gold Project (acquired) and Mt Narryer Project (application lodged) in the world-class Yilgarn mineral province of Western Australia. Meanwhile, PGM is focusing on acquisitions and growth opportunities.

Going for gold strategy delivered AUD 2 million in new funding.

Lens on the Australian Gold Portfolio

Challa Gold Project: The project allowed PGM to enter a world-class gold province at a low-entry cost through two exploration licences covering 293km² of a gold-mineralised structural trend, located in-between the prolific Mt Magnet and Sandstone gold districts in Western Australia, 500km north-east of Perth.

On 13 August 2020, PGM advised that all requirements precedent for the acquisition of a 100 per cent interest in the project have been fulfilled. The Company is planning to commence field activities including a soil geochemistry and low-cost Rotary Air Blast drilling program to identify and examine primary targets.

The Challa Gold Project (E58/552 and E58/553) lies within an area defined by more than 50 gold occurrences and has four processing mills nearby, boosting development options.

New mines are being developed in:

• Sandstone Province, which produced more than 1.3 million ounces of gold from numerous underground and open pit mining operations.
• Mt Magnet, which produced over 6 million ounces since discovery in 1891.
• Youanmi Gold Mine, which produced 670,000 ounces of gold throughout its lifetime.

Due to discoveries and corporate deals, the district is undergoing a new exploration boom. Ramelius Resources has newly acquired Spectrum Metals and its high-grade Penny West discovery at Youanmi.

The undercover potential remains untested, as the project is not subject to any recent or contemporary exploration activities.

Mt Narryer Project: Similar to Challa Gold Project, the applied exploration licence for Mt Narryer Project is located within a prodigious gold producing province since the 19th century, Yilgarn Craton, which is also home to a number of successful mining operations.

The tenement application (E09/242) covers 165km² of prospective exploration ground in the western Yilgarn Craton. The project is targeting ultramafic units within the gneisses, analogous to the Julimar nickel-copper-PGE discovery 160km to the south. The area has been highly underexplored by contemporary explorers, which is an added advantage for Platina.

Mt Narryer project covers an aeromagnetic high splaying off a major fault between sediments and Archean granites and gneisses. PGM plans to commence exploration at the project after securing tenements.

Related: Platina Seeking to Build Portfolio in WA Goldfields, Submits Application for Mt Narryer Project

Shedding Light on Platina’s Other Projects

Skaergaard Gold & PGM Project: Transaction between Platina and Canadian-listed Major Precious Metals Corp, under which the latter will acquire a 100 per cent interest in the Skaergaard project, is progressing towards completion but remains subject to finalisation of various conditions. Platina’s representative has the option to join the board of Major.

In early May, PGM announced to have received government support for its wholly owned Skaergaard Project, which lies on the east coast of Greenland.

The project value is yet to be fully realised, with divestment expected to deliver AUD 33 million in value to shareholders with opportunity to share in future growth. Sale proceeds totalling AUD 33 million includes CAD 0.5 million in cash on closing and 55 million SIZE shares valued at CAD 31 million (closing price of 0.56 per share on 22 August 2020)

PGM reported that market fundamentals remain robust with record prices achieved in 2020:

• Palladium - USD 2,844/oz in January 2020 (spot USD 2,178/oz)
• Gold – USD 2,045/oz in August 2020 (spot USD 1,950/oz)

Munni Munni Project: 30 per cent owned by PGM, the project is located ~100km east of Karratha in an established mining district with excellent infrastructure, 20km south of Artemis Radio Hill processing plant. The project has four granted mining leases covering 64km².

Recent Reverse Circulation (RC) drilling program at the project included 12 drill holes for 1,928m spread through the entire upper portion of the mineralisation, to a maximum depth of 200m. Notable intersections of palladium, platinum and gold have confirmed the project as one of the country’s largest underdeveloped palladium deposits.

Record prices for gold, palladium, and rhodium during 2020 have improved the number of options available to create value from the project.

Platina Scandium Project: The scandium market development and offtake program is underway. On 21 July 2020, PGM announced that at its New South Wales-based Platina Scandium Project, it is considering a new and cheaper extraction technology for scandium.

For more detail, read here: Platina Recognises New, Cost-Effective Extraction Technology Promising to Unlock Scandium Deals

Blue Moon Project: It has a high-grade zinc-copper-gold deposit with notable resource expansion and development potential. PGM is exploring options on how to realise value from the project.

December 2019 drill program returned the highest zinc and precious metal grades ever drilled in the deposit.

Stock Performance: On 25 August 2020, PGM settled the day’s trade at AUD 0.049. The Company has a market capitalisation of AUD 20.2 million. In the last three months, the stock delivered a return of 92.31 per cent, while year-to-date return was noted at more than 177 per cent.

Must Read: Scan Through Platina Resources’ Robust June 2020 Quarterly Activities Report