Platina Resources Limited (ASX:PGM) is to engage a qualified technical advisor to prepare a scoping study for its Skaergaard gold and platinum group metals (PGM) project in Greenland.
The company recently engaged an advisor to assist in reviewing a number of highly-conditional non-cash offers for the project.
Considering the advisor’s recommendations and the recent increase in the palladium price, Platina made the decision to define the potential development options available for the project through a scoping study.
Platina managing director Corey Nolan said: “The company believes that a scoping study will provide a basis for evaluating the potential development options for the project.
“[This will help] make an informed judgement about the best future path forward for the project.”
READ: Platina Resources’ definitive feasibility study confirms robust financials for scandium project
Platina has invested more than $16 million in the development of the asset including drilling, metallurgy and technical studies.
In July 2013 the company reported a JORC-compliant mineral resource estimate based on price assumptions of US$1,400 an ounce for gold and platinum and US$560 an ounce for palladium.
The price of palladium in the last five years has increased from US$736 an ounce to US$1,250.
The company recently demonstrated that it can reliably produce 2% scandium-aluminium master alloy from scandium oxide from its Platina Scandium Project in New South Wales.
Test work underway since August is focused on developing proprietary master alloy production procedures.
Conversion of the scandium oxide produced from mining and processing operations into aluminium-scandium master alloys represents a valuable opportunity for Platina.