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Platina Resources continues corporate activities despite coronavirus impact

The Australian-based exploration and development company is focused on precious and specialty metals, particularly platinum group metals and the strategic metal scandium.

Platina Resources Ltd - Platina Resources continues corporate activities despite coronavirus impact
Platina is taking steps to minimise expenditure across its projects

Platina Resources Limited (ASX:PGM) has suspended on-site exploration activities and minimised expenditure due to the impacts and concerns of the Coronavirus but will continue to conduct corporate activities associated with its asset portfolio.

The company said that creating shareholder value remains a priority despite the headwinds and the plan is to progress several key initiatives relating to its projects.

Blue Moon Project

Platina holds a 70% stake in the Blue Moon Zinc Project in the US and is seeking to restructure its August 2019 joint venture agreement with project owner Blue Moon Zinc Corp (CVE:MOON) given the significant impact the coronavirus is having on the stock market and the company’s capacity to complete its first stage earn-in.

The company’s recent initial 1,100-metre drilling program reported high-grade base and precious metal intersections in January 2020.

Platina is continuing to explore funding options for the project which it believes offers significant upside, diversifies the asset mix away from specialty metals into well-understood commodities with daily traded liquid markets, and increases opportunities to secure offtake contracts to underwrite project finance once near development.

Skaergaard Project

The 100% owned Skaergaard Project in Greenland hosts one of the world’s largest undeveloped gold deposits and the largest resources of palladium outside of South Africa and Russia.

A scoping study completed in December 2019 highlighted development potential, but a substantial investment is required to progress the project to a feasibility stage.

Several groups with the financial and technical capacity to advance the project have expressed interest in the project and Platina is working with its advisors to assess the merits of the proposals.

Platina Scandium Project

Also known as the Owendale scandium project, Platina is actively working on a number of opportunities to advance the 100% owned project in New South Wales and address the challenge of securing scandium offtake agreements.

Current initiatives underway include:

  • Working with Traxys Europe S.A to assess scandium product and market development, and potential project funding,
  • Assessing the potential for smaller scale development options like vat leaching, with the program around 60% completed,
  • Testing the potential to produce other products from the project with a planned test work program for high purity alumina production deferred until completion of the VAT leaching program, and
  • Assessing the potential for blending high grade nickel/cobalt ores with high-grade scandium ores to diversify the potential income streams from the project.

Munni Munni Project

Platina is exploring options with its joint venture partner Artemis Resources Ltd’s (ASX:ARV) subsidiary Karratha Metals Pty Ltd to realise value for the project that represents one of Australia’s largest undeveloped planum group metal occurrences.

The recent significant increase in the price of palladium, gold and rhodium is enhancing discussions and interest in the project, of which Platina holds a 30% interest.

Quick facts: Platina Resources Ltd

Price: 0.025 AUD

ASX:PGM
Market: ASX
Market Cap: $8.16 m
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