Platina Resources (ASX:PGM) is acquiring a whole interest in the Mt McKenna Gold Project in the Eastern Goldfields region of Western Australia after agreeing to terms with Jasper Exploration.
The company will pay $320,000 cash to Jasper Exploration, issuing 20 million shares and offering a 1.5% net smelter royalty.
Platina will be eligible to buy-back 50% of the net smelter royalty at market value.
Managing Director Corey Nolan explains that the district where the project is located is “not fully matured” and holds potential for large discoveries, building on the success stories of nearby assets, such as Magnetic Resources (ASX:MAU) which has a gold resource of 2.3 million ounces just 27km west.
“Mt McKenna presents a near-drill ready project opportunity with significant exploration upside, which aligns closely with our corporate objective of drilling to generate shareholder value,” Nolan says.
Historical drilling at the project returned intercepts including 16m @ 1.05 grams per tonne gold including 4m @ 3.41g/t from 32m, and 15m @ 0.87g/t gold.
“More recent gold rock chip sampling of laterites and nearby gold nugget finds potentially indicate that the geology is more prospective to the east of the historical drilling along more than 20km of strike along the greenstone belt traversed by the Granite Well fault structure and intrusives,” Nolan adds.
Rock chip samples include 248g/t, 21g/t, and 5g/t, proximal to gold nugget findings.
The Mt McKenna Gold Project is located nearby Genesis Minerals’ (ASX:GMD) Laverton Project, which holds a resource of 3.9 million ounces of gold, just 13km east of the town, Laverton in Western Australia.
Platina Resources is focused on advancing early stage metals projects with exploration, feasibility, and permitting towards development.
Write to Maddison Elliott at Mining.com.au
Images: Platina Resources
