THE BOURSE WHISPERER: Platina Resources (ASX: PGM) is set to widen its Western Australian gold presence by acquiring the Xanadu gold project, located in the Ashburton province of the state.
Platina Resources made a point of indicating the project is close to the multi-million-ounce Mt Olympus gold deposit of Kalamazoo Resources (ASX: KZR).
“Xanadu has immense appeal given the number and width of economic grade gold drill intercepts which have never been followed up with a systematic exploration campaign,” Platina Resources managing director Corey Nolan said in the company’s ASX announcement.
“The project has been the subject of a number of mainly shallow drilling programs and a historical gold heap leach operation.
“Our exploration strategy will initially comprise low-cost geophysics and geochemistry to build a deeper knowledge of the geological potential of the project and to define both shallow and deeper targets for drilling.”
Work by previous owners at Xanadu has identified a large alteration system with gold occurrences, which Platina believes outlines potential for discovery of a meaningful gold mineralising system.
The company will be targeting Telfer and Hemi-styles of intrusion related gold mineralisation as well as sediment-hosted Carlin type, found in Nevada USA.
“Whilst we believe there is significant potential to expand upon the known oxide mineralisation, the longer-term prize is targeting primary mineralisation within the alteration core of the system, which has never been tested by historical drill programs,” Nolan said.
Xanadu comprises seven prospecting licences and five exploration licences covering 498 square kilometres.
Platina expects logistics and operations to be low cost given access to the project is relatively easy from the regional mining centre of Paraburdoo, just 38km away.
TO READ THE FULL ANNOUNCEMENT: CLICK HERE