Platina Resources Limited (ASX: PGM) (‘the Company’ or ‘Platina’), the Western Australian gold exploration company, has announced a significant milestone in its journey to unlock the potential of its flagship Xanadu Gold Project. The Company has secured a $54,750 grant under the Western Australian Government’s Exploration Incentive Scheme (EIS). The grant will fund up to 50% of direct drilling costs for a targeted exploration campaign at the Cleopatra South Prospect of the Xanadu Gold Project. Located adjacent to the ASX Listed Kalamazoo Resources’ 1.44 million-ounce Mt Olympus deposit, the Xanadu Gold Project spans a 10km mineralisation zone with substantial discovery potential. This funding validates Platina’s geological potential and highlights the critical role of government partnerships in supporting mineral exploration.
Figure 1 Exploration targets at Xanadu Gold Project
Drilling Program Details
The planned diamond drilling campaign will target depths of up to 380m at the Cleopatra prospect, focusing on an 800 m-long arsenic trend identified from historical drilling. This deeper exploration strategy aims to uncover the source of gold mineralisation within the project’s 10km mineralised corridor. The program, scheduled to commence between December 2024 and November 2025, will be executed subject to weather conditions in the Pilbara and drill rig availability. Platina intends to complete the drilling as soon as possible to accelerate the exploration timeline.
Exploration Strategy
Platina’s Managing Director, Mr. Corey Nolan, highlighted the significance of the drilling program, stating,
“These deeper targets could be the key to unlocking Xanadu’s full value. We seek to find the gold source within a 10km mineralised corridor defined by previous shallow drilling in the project’s western tenements.”
The exploration strategy builds upon previous successful work at Xanadu, where shallow drilling has already identified widespread gold oxide mineralisation. The upcoming diamond drilling program represents a crucial step in testing the system’s deeper sulphide potential.
Figure 2 Planned EIS diamond drill hole at Cleopatra South Prospect
Chalice Mining Limited has concluded its Mt Narryer Joint Venture with Platina in parallel developments after investing approximately $400,000 in comprehensive exploration activities. These activities included field visits, surface sampling programs, and acquiring new airborne geophysical data, providing valuable insights into the property’s potential. Platina’s technical team will conduct a detailed assessment of Chalice’s work and consider re-assaying existing samples from tenement E 09/2704. This thorough review will help determine the project’s most effective future exploration strategies.
Xanadu Gold Project: a Strategic Asset in Gold-Rich Pilbara Region
The Xanadu Gold Project, strategically positioned along the 470km Nanjilgardy fault zone, encompasses a substantial 554km² land package consisting of seven prospecting licences and six exploration licences, providing Platina Resources with extensive exploration potential across the prospective Pilbara terrain. The project’s location adjacent to significant gold deposits and recent corporate activity highlights its potential value. The project’s proximity to Kalamazoo Resources’ 1.44 million-ounce Mt Olympus deposit, which has attracted a planned $30 million acquisition by De Grey Mining, underscores the region’s strategic importance and mineral wealth potential.
Figure 3 Xanadu Gold project
Platina’s other Project Portfolio
Platina Resources has developed a strategic project portfolio focused on gold exploration in Western Australia. The Company has identified four priority projects situated. These projects are strategically located within premier mining jurisdictions, leveraging the area’s established geological prospectivity and robust mining infrastructure.
Beete Gold Project
Platina’s Beete Gold Project is in a historical high-grade mining district near Norseman, Western Australia. Aruma Resources (ASX: AAJ) and Meeka Gold (ASX: MEK) have recently discovered gold in the area, highlighting the region’s gold potential. The region also hosts high-grade gold mines. Pantoro Limited’s (ASX: PNR) Scotia deposit (0.9 Mozs) is 12km north of Beete. In Q2 2024, a maiden 6,331m air-core drilling program over 202 holes confirmed the presence of a greenstone belt and multiple new anomalous gold targets. Along with the greenstone identification and NE-SW potential 4km Beete Mine Trend, the drilling has interpreted a major 16km long N-S shear zone, indicating gold mineralisation. Further investigation will be carried out along this belt, which could host high-grade gold deposits.
Figure 4 Beete Gold Project
Brimstone Gold Project
The Brimstone Gold Project, spanning 70 square kilometres, is located 40km northeast of Kalgoorlie, Western Australia. This advanced-stage exploration project has revealed broad widths and high-grade gold mineralisation across up to 10km of strike length on highly prospective greenstone rocks. Recent drilling at the Garibaldi prospect confirmed high-grade and thick gold intersections. With approximately $5 million in historical expenditure, the project has seen over 964 drill holes, totalling 51,638 meters.
Figure 5 Brimstone Gold Project
Challa Gold project
The Challa Gold Project is situated in a highly prolific gold-producing region. In October 2024, air-core drilling was conducted, totalling 1,856 meters across 41 holes. Notably, hole CHAC0155 intersected a promising mineralised zone, with 12 meters at 0.66 g/t Au from 100 meters, including 4 meters at 1.7 g/t Au along a central shear zone. Further drilling is required both up-dip and along strike to assess the mineralised system’s full extent and potential size.
Figure 6 Challa Gold project
Other Projects
Platina Resources is advancing several critical projects in Western Australia, including the Jubilee Gold Project near Meekatharra in the Murchison Province, the Mt. Narryer Project in the Yilgarn Craton under a joint venture with Chalice Mining, and the Binti Binti Project near Kalgoorlie. All the prospective projects have potential for gold mineralisation, waiting to be unlocked by further exploration efforts.
As Platina Resources continues to advance its critical projects in Western Australia, the Company is also focused on strengthening its financial position to support ongoing exploration and development efforts. The following provides an overview of the company’s economic outlook.
Financial Outlook of Platina Resources
- At the end of the September 2024 quarter, Platina reported a strong cash balance of A$12.695 million in cash and tradeable equity investments valued at A$0.12 million, which includes Nelson Resources (ASX: NES), which has 11.8 million market shares, valued at A$0.03 million and Alien Metals (AIM: UFO) which has 42 million market shares, valued A$0.09 million. Platina also holds 49 million shares in unlisted, major Precious Metals Corporations.
- Platina also strengthened its balance sheet with its first milestone payment of A$5.945 million (US$4 million) from selling the Platinum Scandium Project to Rio Tinto. Platina will receive future cash payments up to A$4.5 million, subject to Rio Tinto achieving project permitting milestones.
Figure 7 Platina Resources balance sheet
Platina Resources’ remarkable financial strength is underscored by its cash reserves exceeding its market capitalisation, highlighting its unique and robust market position.
Global Gold Demand
The World Gold Council’s Q3 2024 Gold Demand Trends report reveals that total gold exceeded US$100bn for the first time on record, supported by substantial investment in a record-high price. Additionally, the total demand for gold in technology grew 7% year-on-year, influenced by the growth of the electronics sector as the AI boom continues to increase the demand for gold in the market.
Louise Street, Senior Markets Analyst at the World Gold Council, commented:
“A ‘FOMO factor’ amongst investors has been a key driver of increased demand this quarter. Investors have shown an appetite to buy into the price momentum, are encouraged by the prospect of future interest rate decreases and are also considering gold’s role as a haven in the face of US political uncertainty and escalating conflicts in the Middle East.”
Managing Director Mr Corey Nolan
Mr. Corey Nolan brings 30 years of expertise in acquiring, funding, and developing resource projects to grow Platina Resources. As the former CEO of Sayona Mining Ltd., he was instrumental in obtaining the Authier Lithium Project in Canada. His strategic insights, further honed as a Non-Executive Director of Elementos Ltd., are set to propel Platina’s exploration and development initiatives to new heights.
Figure 8 Mr. Corey Nolan, Managing Director
Corporate Outlook: Key Drivers for Future Growth
Platina Resources maintains a robust financial foundation with zero debt and substantial cash reserves. The company’s strong market standing is reflected in its A$11.84 million market capitalisation, based on 623,180,331 issued shares trading at A$0.019 as of November 20th, 2024.
Growth Catalysts
- Exciting developments are underway at the Xanadu Project, with diamond drilling scheduled for 4QCY24, aimed at uncovering the full potential of this promising site.
- Anticipated geophysics surveys in 1QCY25 at the Beete Project, followed by air-core drilling in the same quarter, are expected to define the project’s mineralisation further and enhance its value proposition.
- Platina Resources is committed to unlocking the significant value of the Brimstone Project through targeted exploration and development, positioning it for future growth.
- The gold price remains at historic highs, providing a favourable market environment for projects like Platina Resources potentially boosting investor returns.
These catalysts create a strong outlook for Platina Resources, making it an exciting investment opportunity in the resource sector.
For more details, visit the Company’s official website.
