Name of the Project
Platina scandium project.

Location
New South Wales, Australia.

Project Owner/s
Rio Tinto.

Project Description
A definitive feasibility study (DFS) has confirmed the technical and financial viability of constructing a simple, low strip ratio, opencut mining operation and processing facility producing scandium oxide at Platina.

The project will be developed in stages.

Stage 1 involves small-scale scandium oxide production of 20 t/y.

Stage 2 involves increased scandium oxide production to 40 t/y by upgrading the processing train.

While not studied in the DFS, there is potential to produce cobalt, nickel and high-purity alumina.

The site layout and design consider an additional Stage 3 expansion, with a second parallel processing train to meet expected market growth for scandium.

While considered for planning, Stage 3 is not part of the DFS assessment.

Based on the current resource estimate, the project has a mine life of 30 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project generates an estimated after-tax net present value, at an 8% discount rate, of $166-million and an internal rate of return of 29%, with a payback of 5.3 years.

Capital Expenditure
Stage 1 capital expenditure is estimated at $48.1-million and Stage 2 at $11.1-million.

Planned Start/End Date
Not stated.

Latest Developments
Rio Tinto struck a $14-million deal with Platina Resources to acquire its Platina scandium project in April.

The acquisition aligns with the company’s strategic goal to expand in materials essential for the low-carbon transition.

On closing, Platina will receive $8-million cash, excluding a $1-million warranty retention payment, which is repayable by Rio after 30 months. Platina may also receive future cash payments totalling $6-million subject to Rio’s achieving project milestones, including the granting of a mining lease.

Platina MD Corey Nolan has said the sale has unlocked value in the project where Platina has made a considerable investment, advancing the project through exploration to the definitive feasibility study stage.

“This transaction with Rio Tinto will also allow Platina shareholders to benefit from an injection of new funding to advance its extensive gold portfolio and pursue other more advanced project opportunities without shareholder dilution,” Nolan has said.

Key Contracts and Suppliers
Ausenco Services (process design, capital and operating cost estimates, compilation of the DFS report); Element 21 (scandium solvent extraction and refining); ATC Williams (residue storage and geotechnical); RW Corkery & Co (environmental and permitting); Measured Group (mine planning); MCD Geo (financial modelling) and CM Group (scandium market analysis).

Contact Details for Project Information
Platina Resources MD Corey Nolan, tel +61 7 5580 9094 or email admin@platinaresources.com.au.