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Murray Ward
Platina Resources has shifted its gaze beyond Western Australia’s goldfields, applying for a massive 992-square-kilometre land package in the Birrindudu region of the Northern Territory, 290 kilometres southeast of Kununurra across the border, in a bid to uncover a major tin discovery.
The company has lodged submissions for two contiguous exploration licences that will form its new Jove tin project, where historical work has uncovered a geological mystery that has stumped miners for decades.
Previous explorers, including major players Western Mining Corporation and Independence Group, identified widespread cassiterite, the principal ore that hosts tin, in streams across a 38km corridor. However, they never pinned down the primary bedrock source, or “motherlode”, of the mineralisation.
Platina believes it may have uncovered the reason why. Its own technical review of regional geophysical data has identified a cluster of four concealed large magnetic anomalies, including one measuring a whopping 6.3km by 5.4km with another measuring a hefty 4.3km by 1.9km, potentially pointing to a concealed granite-related tin system. None of the newly identified anomalies appears to have been kissed by the drill bit.
‘Jove represents an opportunity to advance Platina’s strategy of targeting high-potential geological environments.’
Platina Resources managing director Dr Paul Polito
Platina’s fresh targets sit between 10km and 18km away from the historical Captain Jack prospect, where Independence Group, now IGO Limited, drilled 287 holes for 4147 metres and to an average depth of just 14.5m in a previously unsuccessful campaign. The company argues the drilling did not adequately test the alternative geological targets now uncovered, providing it with a fresh opportunity to potentially solve the region’s enigmatic tin puzzle.
Consistent with its systematic approach, Platina has laid out a staged and disciplined exploration plan designed to progressively de-risk the Jove tin project.
Subject to the granting of the two new exploration licences along with the necessary heritage, land-access, environmental and statutory approvals, the company’s five-stage program will begin with data compilation and field reconnaissance before moving to modern mineralogical analysis of cassiterite - the type of ore that hosts tin - and sampling to investigate the tin’s origin.
The company will then conduct detailed aeromag and ground gravity surveys to refine the targets. In line with its disciplined approach, management says it will consider a targeted drilling program only if the preceding work stacks up.
Platina’s ability to take on new, large-scale projects is underpinned by a savvy exploration and monetisation strategy that has seen it methodically prune and joint-venture its old portfolio. That playbook was recently highlighted by the completed sale of its Owendale scandium project to mining goliath Rio Tinto. The savvy deal delivered a whopping US$14 million (AU$20M), with the final A$2.9M landing in the company’s coffers in September, leaving it well-funded to pursue similar opportunities.
Platina Resources managing director Paul Polito said: “Jove represents an opportunity to advance Platina’s established strategy of targeting high-potential geological environments capable of delivering material discoveries and shareholder value. Our Laverton gold projects remain our primary focus, but we have consistently made it clear that we will pursue other opportunities where our technical capability, balance sheet and transaction experience may be used to progressively establish value without diluting focus.”
The move into tin looks to be commercially shrewd. Tin has been designated a strategic material by the Australian Government due to its essential role in electronics, electric vehicles and renewable energy systems. The International Tin Association forecasts global consumption to grow by 20 per cent from 357,000 tonnes in 2023 to 428,000 tonnes by 2030, highlighting the need for new investment in mine supply.
The company’s primary focus remains a suite of gold projects in WA’s prolific Laverton district, home to world-class deposits such as Gold Fields’ 3.9-million-ounce Granny Smith mine. Platina’s Mt McKenna project sits just 13km east of Laverton and has delivered highly encouraging results, including a one-metre hit at a hefty grade of 7.1 grams per tonne (g/t) gold from just 40m at its Granite Well East prospect. The company has subsequently kicked off a 53-hole, 3200-metre drilling program at the prospect to follow up the results, test strike continuity and assess the system’s lateral extent.
Just 45km south, Platina’s Sunrise Bore project has also shown significant promise, with a previous campaign returning a solid 29-metre hit assaying 3.38g/t gold from 11 m, which included a richer 11-metre core going an eye-catching 8.62g/t.
With its saddlebags full of cash from the Rio deal, a portfolio of promising gold projects ticking over in WA and a proven strategy of smart project generation, Platina’s low-cost entry into a new commodity hunt looks less like a speculative punt and more like a calculated move. By applying modern thinking to a historical geological riddle, the company appears to have given itself a decent shot at what could become a significant prize without betting the farm.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au