Platina Resources Limited (ASX:PGM) (OTCMKTS:PTNUF) (FRA:P4R) is focused on building its presence in Australia with high-value metals including gold after divesting international assets last year.
Exploration is being ramped up at the Challa Gold Project in Western Australia which was acquired in June last year and is the company's primary current focal point.
Platina is also looking to make the most of its Owendale Scandium Project in New South Wales and the Munni Munni Project in WA, which it believes has the potential to host one of Australia’s largest undeveloped palladium deposits.
Notably, gold and palladium prices climbed to record highs last year while scandium is also doing well, and the company is confident its renewed focus on these metals could be worthwhile.
Challa in proven province
The Challa Gold Project is between the prolific Mt Magnet and Sandstone gold districts in Western Australia and is 500 kilometres northeast of Perth and includes two high-quality exploration licence applications covering 293 square kilometres.
The Sandstone province has produced more than 1.3 million ounces of gold from numerous underground and open pit mining operations, while Mt Magnet produced in excess of 6 million ounces since discovery in 1891.
Nearby, the Youanmi Gold Mine produced 670,000 ounces of gold throughout its lifetime and is currently the focus of new resource drilling of high-grade gold lodes.
Soil sampling confirms prospectivity
An initial soil sampling program at Challa last year confirmed several highly prospective zones, and the company is now planning to conduct a more comprehensive gridded soil program to pinpoint targets for follow-up drilling.
The assay of 696 soil samples confirmed a strong correlation to mineralised outcropping veins which were previously identified in the October reconnaissance program that returned grades of 1.62 g/t and 5.89 g/t gold in rock chip samples.
Substantial shareholding in gold explorer
On December 23, Platina became a substantial shareholder in Nelson Resources Ltd (ASX:NES), now holding 5,748,535 shares for a 5.007% interest, further increasing its exposure to gold in Western Australia.
On completion of the sale, the value of Platina’s stake was C$12.65 million (A$13.2 million) and in addition to the cash funds, the company’s shares can be sold over time to fund exploration activities, reducing the need to raise new equity, and avoiding the dilution of its share capital.
Nelson is seeking another Tropicana deposit, currently undertaking a maiden diamond drill program at the Grindall prospect (Woodline Gold Project) in the Fraser Range with 1,000 to 1,500 metres to be completed by the end of January.
International assets divested
The company sold its Skaergaard gold and palladium project in Greenland for A$13.7 million in November, as part of a revised strategy to redirect focus away from overseas territories as international COVID-19 restrictions persisted.
Canadian-listed Major Precious Metals Corp (CSE:SIZE) (OTCMKTS:SIZYF) (FRA:3EZ) acquired Platina’s stake with the ASX-listed junior receiving C$500,000 in cash (A$520,000) and 55 million Major shares.
Platina also withdrew from the Blue Moon Zinc Corp (CVE:MOON) Joint Venture in the US, following the prolonged suspension of field activities.
Blue Moon hosts a drill-ready high-grade VMS-style zinc-copper-gold deposit with significant resource expansion and development potential, and the company has retained a 5% equity in the Canadian-listed company which has ownership of the project.