Mt McKenna Deal Raises Questions on Exploration Risks and Royalty Costs

Strategic Acquisition in a Proven Gold District

Platina Resources Limited (ASX – PGM) has announced the acquisition of a 100% interest in the Mt McKenna Gold Project, situated just 13 kilometres east of Laverton in Western Australia’s Eastern Goldfields. This region is part of the Yilgarn Craton, a geological setting renowned for hosting some of Australia’s most prolific gold deposits, including the nearby Granny Smith Mine and Genesis Minerals’ Laverton Project, each with resources approaching 4 million ounces.

The acquisition, structured through the purchase of all shares in Jasper Exploration Pty Ltd, involves a combination of cash, the issue of 20 million Platina shares, and a 1.5% net smelter royalty, with an option for Platina to buy back half of the royalty. This deal positions Platina to leverage the project’s prime location and geological potential.

Encouraging Early Exploration Indicators

Historical exploration at Mt McKenna has been limited but promising. Shallow rotary air blast (RAB) drilling has intercepted gold mineralisation, including notable intercepts such as 16 metres at 1.05 grams per tonne (g/t) gold and 15 metres at 0.87 g/t gold. More striking are recent rock chip samples revealing exceptionally high-grade gold values, with assays up to 248 g/t, alongside significant finds of gold nuggets in the vicinity.

These results suggest that the project’s geology, characterized by greenstone belts intersected by major faults and intrusions, remains underexplored, particularly to the east of historical drilling. The presence of major regional structures such as the Granite Well fault provides potential conduits for gold mineralisation to surface, enhancing the prospectivity of the area.

Proximity to Established Mines and Infrastructure

Mt McKenna’s location near established mines and processing facilities offers logistical advantages. The project lies close to the Laverton township and is accessible year-round via existing roads and station tracks, facilitating efficient mobilisation for exploration activities. This proximity also reduces capital expenditure requirements for future development phases.

Moreover, the project’s adjacency to significant gold operations underscores the potential for discovering economically viable mineralisation. Recent transactions in the district, including Genesis Minerals’ $250 million acquisition of the Laverton Project and Magnetic Resources’ discovery of a 2.3 million ounce gold resource nearby, highlight the ongoing attractiveness of the region.

Platina’s Exploration Plans and Outlook

Platina plans an aggressive exploration program at Mt McKenna, commencing with detailed data compilation and reinterpretation of historical results. This will be followed by soil and rock chip sampling, gravity surveys, and drilling, pending the completion of cultural heritage surveys and native title agreements, which are already in place.

The company aims to apply modern exploration techniques, including ground gravity surveys and seismic data reprocessing, to identify high-priority targets along the syenitic intrusions and major fault zones. The exploration strategy also considers the potential for nickel mineralisation associated with the Diorite Hill layered mafic-ultramafic intrusive complex within the tenement.

Managing Director Corey Nolan emphasised the project’s near drill-ready status and significant upside potential, aligning with Platina’s corporate objective to generate shareholder value through targeted drilling campaigns.