- Australia has earned the top spot among the gold-producing countries, dethroning China for the first time since 2007.
- The COVID-19 pandemic has propelled the price of gold (considered as a safe haven asset) to a record high.
- Platina Resources is actively advancing exploration at its Challa and Xanadu gold projects in the current buoyant scenario.
Riding high on its gold exploration endeavours, Platina Resources Limited (ASX:PGM) continues to make significant headways in the world-class mining jurisdictions of Australia.
Notably, Australia has earned the top spot among the gold-producing countries globally. Australia reported the production of around 157 tonnes of gold in the first half of 2021, dethroning China for the first time since 2007.
The recent development came against the backdrop of the COVID-19 pandemic, which has driven gold prices to record highs. The yellow metal is considered a safe haven asset in the times of uncertainty.
The favourable market tailwinds coupled with the ongoing price trends may prove significant for Platina Resources’ gold projects located in the top-tier mining jurisdiction of Western Australia.
Encouraged by the upbeat trends, the Company is actively advancing exploration undertakings at its gold projects, including the Challa and Xanadu gold projects.
With this backdrop, let us explore what is happening in Australia’s gold exploration space and the recent initiatives widening Platina Resources’ footprint in the precious metal settings.
A glittering outlook for Australia
Australia has been witnessing increased mining activities and gold production for the past couple of years.
The Resources and Energy Quarterly September edition predicts Australia’s gold production to increase by a significant 15.7% to 372 tonnes in 2021-2022. The past two years have proven to be the best in terms of gold production as Australia produced 321 tonnes of gold last year and 329 tonnes in 2019-2020.
Meanwhile, the continued global economic uncertainty due to the COVID-19 pandemic is pushing the sector's revenue, fuelling prices and industry output. As per the Australian Bureau of Statistics, gold exploration investment witnessed a significant increase of 19% to AU$429.8 million in the June quarter.
A snapshot of Platina Resources’ initiatives
The primary focus of Platina Resources’ exploration activities is to advance its gold projects towards drilling as quickly as possible. The Company is targeting 1-million-ounce gold deposits at the two projects.
Recently, Platina Resources commenced an Induced Polarisation (IP) geophysics program at its 100%-owned Xanadu Gold Project in the Ashburton Basin. The Company plans to cover a seven-kilometre target zone through the geophysical IP survey, with the zone identified as a high-priority target during recent geological mapping.
The Company is also planning an aircore drilling program at the Challa Gold Project in the Yilgarn Craton after receiving encouraging gold assay results from a comprehensive five-phase soil geochemical survey.
Several drilling targets have been identified, which will now be tested by aircore drilling once the explorer signs a land use agreement with traditional landowners and secures an archaeological site clearance.
The recent endeavours highlight that Platina Resources is advancing well with its strategy to focus on precious metal exploration in Western Australia. Meanwhile, the strong price performance of gold gives the Company confidence to march ahead with its goal of delivering shareholder value.
PGM stock was trading at AU$0.076 on 21 October (AEDT 11:38 PM).