Australia-based Platina Resources Limited (ASX: PGM) is a multi-mineral focussed exploration company, engaged in the development of its metal deposits internationally while also remaining open to identifying other additional prospective projects and commodity opportunities. Its special bent is presently towards platinum group metals (PGM) and the strategic metal scandium, as the Company controls a portfolio of precious, speciality and base metal projects at various stages of development.
Over the years, the Company has acquired extensive expertise across exploration, feasibility, permitting and development of mineral projects.
Having said that, while the Company has a well-balanced portfolio, the impact of operational restrictions imposed by the government due to the coronavirus pandemic are being observed by all businesses including Platina Resources.
During mid-March 2020, the Company declared suspension of all its on-site exploration works while working towards lowering expenditure amidst the impact being felt and concerns surrounding the coronavirus pandemic. However, corporate activities related to the projects would continue to be undertaken by PGM.
As creating shareholder value remains a priority for the Company despite the headwinds, Platina Resources is currently progressing the following key initiatives.
Blue Moon Zinc-Copper-Gold Project (earning 70% interest)
This is a drill-ready, high-grade zinc-copper-gold deposit located in California, United States, underpinned by a large resource with significant expansion potential.
The Company has indicated towards restructuring its joint-venture agreement with project owner Blue Moon Zinc Corporation (TSX-V: MOON), executed in August 2019, owing to the significant coronavirus impact on the stock market and its capacity towards the first stage earn-in completion.
As announced in January 2020, the initial 1,100-metre drilling program conducted at its new flagship Blue Moon project has returned some exceptional, high-grade base and precious metal intersections.
This highly prospective project not only offers a major exploration upside but also diversifies the Company’s asset-mix away from specialty metals into well-understood commodities that are daily traded in liquid markets. Consequently, PGM is seeking and identifying good funding options for the project. At the same time, this project also enhances the Company’s opportunities to secure offtake contracts to underwrite project finance once it is close to development.
Skaergaard Gold & PGM Project (100% interest)
The wholly owned Skaergaard Project located on the east coast of Greenland has the largest undeveloped gold deposits in the world along with largest palladium resources apart from the ones in Russia and South Africa.
In December 2019, the Company completed a scoping study, which highlighted good development potential; however, project advancement towards a feasibility stage requires quite large investment.
To date, the Company has received interest from a number of groups with the financial and technical capacity to advance the project and Platina is currently working with its advisors to assess the merits of the proposals being offered.
Platina Scandium Project (100% interest)
This is an advanced, de-risked project with potential as a simple, low-cost, open-cut mining operation.
To advance this wholly owned project, the Company is actively working on a number of opportunities and dealing with challenges in obtaining offtake agreements under the marketing program targeted towards potential customers in the US, Europe, Asia and Australia.
The initiatives currently underway for this project are given below:
- The Company in partnership with Traxys Europe S.A is examining scandium product and market development, as well as potential sources of project funding. A number of target opportunities have been identified in recent Company meetings and these are being pursued as well;
- Potential for smaller scale development being assessed like through VAT leaching and this program is around 60% completed until the announcement date;
- At the same time, potential to produce other products from the project is also being considered. The Company has deferred a planned test-work program for the production of HPA (high-purity alumina) until the VAT leaching program completion; and
- Examination of the possibility to blend high-grade Ni/Co (nickel-cobalt) ores with high-grade scandium ores is also underway, mainly targeted towards the potential income stream diversification from this key project.
Munni Munni Project (30% interest)
Currently, the Company, with its joint venture partner Artemis Resources Limited, is looking at different options to realise optimal value for Munni Munni Project, which represents one of the largest undeveloped platinum group metal occurrences in Australia.
It is noteworthy that the recent uptick in prices of palladium, gold and rhodium is underpinning and enhancing discussions around this project.
Stock Information: Platina Resources’ market cap stood at ~ $ 4.57 million with ~ 326.28 million shares outstanding. The PGM stock closed the day’s trade on 28 April 2020 at $ 0.015, inching upward by 7.143% from its previous close. The stock has delivered a positive one-month return of 16.67%.
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