Platina Resources (ASX:PGM) has confirmed its receipt of Exploration Incentive Scheme (EIS) co-funding from the WA State Government to underpin its next drill run.
EIS payments are a WA government initiative to shore up critical and precious metal projects in the state by providing junior explorers partial funding a bid to boost the chances of finding new large deposits onshore WA broadly. Both hard rock miners and oil and gas drillers are eligible.
Preparing to conduct a diamond drill run at its Xanadu Gold Project (XGP), the Cook government has chucked a relatively paltry $54,700 at Platina to drill the Xanadu Deeps target – a prospect on-site the larger play of the same name.
Platina highlighted on Friday that its XGP acreage is nearby the Mt Olympus project boasting an estimated 1.44Moz resource the remit of Kalamazoo Resources (ASX:KZR).
Drillers are focusing on Xanadu Deeps due to the presence of a geophysical anomaly – deep underground – which the company hopes is a deeper-lying sulphide mineralisation system “represented by dispersed oxide mineralisation closer to surface.”
“These deeper targets could be the key to unlocking Xanadu’s full value,” Platina chief Corey Nolan said.
“We are seeking to find the source of gold within a 10km mineralised corridor defined by previous shallow drilling in the project’s western tenements.”
Additional to Xanadu Deeps is another target of interest named Cleopatra – but what is of interest to geotechs downhole that asset lies 380m underground, basically confirming any future profitable operation would be an underground play.
“As our most prospective target, Cleopatra will be drilled first down to 380m to target the core of an unexplained reprocessed aero electromagnetic anomaly along an 800m long arsenic trend identified from historical drilling,” Nolan added.
In the background, there was news perhaps of a more sombre note: Chalice Mining (ASX:CHN) has pulled out of a JV with Platina at Mt. Narryer. The former has spent some $0.4M in early-stage works on-site with that data to now go to Platina for its own geotechnical review.
PGM last traded at 2.2cps.
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