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Platina Resources Limited (ASX:PGM) Skaergaard Scoping Study Defines Development Pathway

Perth, Australia, Nov 27, 2019 - (ABN Newswire) - A new internal scoping study for Platina Resources Limited's (ASX:PGM.AX - News) (HAM:P4R.F - News) (OTCMKTS:PTNUF - News) Skaergaard Project in Greenland has defined a clearer development pathway for one of the world's largest undeveloped gold deposits and one of the largest palladium resources outside of South Africa and Russia, with by-product metals magnetite and vanadium.

The internal scoping study, independently prepared by engineering consultants, SRK Consulting demonstrates the grades of the palladium and gold ore zones are relatively low and a large-scale underground mining operation and process plant with a high initial capital outlay will be required to realise the benefits of economies of scale. The project economics are highly sensitive to changes in revenue, operating and capital costs but has demonstrated a positive outcome. The significant increase in the price of palladium in 2019 has had a positive impact on the project's economics and the outlook for palladium demand and pricing remains robust.

Metallurgical test work has demonstrated the amenability of the gold and platinum group metal (PGM) mineralisation to processing by means of both gravity and froth flotation processes. In addition, leaching of the concentrates has demonstrated the potential to produce gold dore on site. Preliminary results are also encouraging in terms of titano-magnetite and ilmenite recovery, demonstrating that those minerals are upgradeable by a combination of magnetic separation and flotation. It has been shown that the vanadium can be recovered in the titano-magnetite concentrate.

Skaergaard is located in an area of steep terrain, glaciation and frequently hostile climatic conditions. Similar conditions are encountered at other mines in artic conditions and can be addressed by suitable engineering, operational, and environmental practices.

Platina notes that the majority of the JORC mineral resources are defined as inferred (refer to ASX announcement dated 23 July 2013, "New Resource Estimate for Skaergaard Gold and PGM Project, East Greenland"), and as a consequence, Platina is unable to release the production target or forward-looking information produced as part of the scoping study pursuant to regulatory requirements.
Platina Managing Director Corey Nolan said the scoping study showed a significant investment was required to progress the project to the next stage.

"Advancing the project to the feasibility stage will require drilling to convert inferred to indicated mineral resources (estimated at more than 10,000 metres), detailed metallurgical test work to determine processing characteristics and refine the process route, and quality and pricing of saleable products," Mr Nolan said. "In addition, further assessment of engineering, design and technology factors for the design and location of the process plant, tailings disposal and mining methods is critical in defining the project concept and the expected capital and operating costs."

"As such, Platina will seek to find a financial and technical partner to help develop the project. Platina will engage a suitable financial advisor to assist in the partnering process."

Skaergaard Next Steps

Skaergaard has significant gold and platinum group metal endowment and the high-level assessment scoping study has demonstrated the potential to develop the project. The Project highly is sensitive to revenue (metal prices).

There is not a substantial margin between the contained metal value and the operating costs. To reduce risk, further studies to increase revenue from the contained metals is required. This includes verifying if a saleable ferrovanadium concentrate can be produced and sold. The project is also sensitive to operating and capital costs. Studies to reduce operating costs are necessary in future technical work. Part of this will be to determine a technically and economically feasible site to process the ore and verify if sub-sea disposal of tailings is a viable option for the Project.

Based on the study undertaken, SRK makes the following recommendations for further short-term assessment, including:

- Further consideration of engineering, design and technology factors for the design and location of the process plant, tailings disposal and mining methods;

- Further metallurgical testwork and marketing studies are undertaken to verify marketability and saleability of products produced from Skaergaard; and

- Additional drilling to prove up the resource to indicated mineral resource level and investigate the possibility of a higher-grade mine plan.

Other aspects of the project that should be studied in parallel to give more confidence include, but are not limited to:

- Increased confidence in modelling of the thickness of the horizons, and all the metals contributing to the net smelter return. This includes assessing the presence of dykes and faults. Infill drilling is required to diminish this risk and upgrade the mineral resource status to level required for Pre-Feasibility;

- Increased design of the processing plant and confidence in possible recoveries for all the contributing metals and their marketability;

- Solutions for dumping waste and dealing with tailings that are acceptable to local government and comply with environmental laws;

- Assessment of tax regimes and the local content stipulations which can affect the design and operation of the project;

- Further technical assessment of the mining method and associated costs;

- More detailed mine design, especially placement of ventilation shafts and a ventilation simulation study incorporating the environmental conditions;

- Assessment on the location of the camp, aerodrome, quay, ship based process plant and loading facilities to determine if the western location of the portals (which provide quicker access to high grade ore) is viable;

- The proposed camp, new airstrip and portal locations are outside of the current lease area and this will need to be addressed in future assessments;

- Labour force studies, including salary requirements to ensure settled crews in tough conditions, and rotation scheme as this will have a large effect on staff numbers and costs; and

- Increased confidence in capital expenditure numbers as well as operational expenditure.


About Platina Resources Limited:

Platina Resources Limited (ASX:PGM.AX - News) Platina is an Australian-based company focused on returning shareholder value by advancing early-stage metals projects through exploration, feasibility, permitting and into development.

The Company has interests in the following projects:

- Platina Scandium Project (100% interest) - located in central New South Wales, the project is one of the largest and highest-grade scandium deposits in the world, which has the potential to become Australia's first scandium producer with cobalt and nickel credits. A Definitive Feasibility Study was completed in late 2018 demonstrating the technical and economic viability of constructing the project. The Company is now focused on completing the permitting and securing offtake and financing.

- Skaergaard (100% interest) - One of the world's largest undeveloped gold deposits and one of the largest palladium resources outside of South Africa and Russia, located in Greenland;

- Munni Munni (30% interest) - Situated in the Pilbara region of Western Australia, the project is one of Australia's most significant Platinum Group Metal occurrences. Munni Munni also has potential for conglomerate hosted gold and is a Joint Venture with Artemis Resources Limited; and

- Blue Moon (to earn a 70% interest) - Located in California, U.S.A, the project is subject to a Nl 43-101 Mineral Resource estimate. The resource is open at depth and along strike and has favourable metallurgy.


For more information please see: https://www.platinaresources.com.au

Contact:

Corey Nolan
Managing Director
Phone +61 (0)7 5580 9094
admin@platinaresources.com.au

Gareth Quinn
Corporate Affairs Manager
Mobile: 0417 711 108
gareth@republicpr.com.au

Source:

Platina Resources Limited

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