PERTH (miningweekly.com) – ASX-listed Platina Resources has increased its stake in Canadian explorer Major Precious Metals after that company reported a significant increase to the mineral resource estimate of its Skaergaard project, in Greenland.
Platina said on Tuesday that its 49-million share stake in Major has now increased to a$30-million, with some 20.625-million shares having been released from escrow, with Major’s shares trading at C$0.60 each recently.
Major last week announced the results of an independent mineral resource estimate for the Skaergaerd project, which reported a 5.5-million palladium equivalent ounce indicated resource and a 14.4-million palladium equivalent ounce inferred resource at Skaergaerd.
Skaergaerd is considered to host one of the world’s largest undeveloped gold deposits and one of the largest palladium resources outside of South Africa and Australia.
Major is now undertaking a 12 500 m to 15 000 m drilling programme after the recent resource update.
Platina MD Corey Nolan said Skaergaerd’s new independent resource estimate came at a time of record prices for palladium
“The palladium price has climbed to a record high of over $2 900/oz in April, over a 40% rise from a year ago.
“The new resource estimate also reflects substantially higher palladium and gold price of $1 725/oz and $1 800/oz compared to $560/oz and $1 400/oz respectively in the Wardell Armstrong mineral resource estimate in 2013.
“Major’s planned drilling programme will seek to expand and boost the confidence level of the mineral resource and better understand the nature of the vanadium, titanium and iron mineralisation within the deposit,” said Nolan.
“We’re confident that Skaergaerd offers Platina shareholders considerable upside as the project transitions from exploration through to feasibility and towards production.”