Platina Resources has drill spinning at Blue Moon Zinc-Copper Project in California
Tuesday, 19 November 2019 () Platina Resources Limited (ASX:PGM) (FRA:P4R) (OTCMKTS:PTNUF) has started a 10,000-metre winter drilling program at Blue Moon, a high-grade, zinc-copper-rich massive sulphide project with gold and silver precious metal credits, in the US state of California. The Western Australian company expects to diamond drill 2,000 metres in a 4-hole phase I campaign at the earn-in project this year and finish off another 8,000 metres of drilling next year. Platina hopes to produce a JORC-compliant resource for the project and a metallurgical test work output ahead of a pre-feasibility study in the December 2020 half-year. Shares are up 15% today to 2.3 cents. Test southern plunge The company plans to test a potential southern plunge in a mineralised zone in its drilling in an area that contains most of the project’s existing resource. Its testing will also take in high-grade historical holes in an effort designed to help it build a higher grade core for the deposit. The company said it would also test an upper extension of the main and east mineralised lenses, noting the east lens typically had higher grade gold and silver. “Significant exploration upside” Platina Resources managing director Corey Nolan noted the goal was to build a resource in an attractive zinc-copper-gold and silver commodity suite. Nolan reported, “The Blue Moon project provides shareholders with exposure to another exciting investment opportunity at an early stage, which will generate significant news flow as it advances through exploration, feasibility, perming and into development. “It has an existing resource of zinc-copper-gold plus significant exploration upside within the main identified lenses, and further along strike where coincident geochemical and geophysical anomalies have highlighted potential targets.” Nolan flagged the company was expecting a re-rating of its share price to better meet its peers once it began developing the resource for Blue Moon project. Blue Moon is 70%-owned by Platina, which also has a portfolio of projects in Australia, including the high-grading Platina Scandium Project in New South Wales. Platina Resources will hold its annual general meeting in Queensland on November 27, 2019, at Waterfront Place, 1 Eagle Street, Brisbane.
In trading on Tuesday, oil & gas exploration & production shares were relative laggards, down on the day by about 2.1%. Helping drag down the group were shares of Lonestar Resources (LONE), down about 10.6% and shares of California Resources (CRC) down about 10.4% on the day.