Joint venture (JV) partners Octava Minerals and Future Metals NL have launched a drill hunt for platinum group metals and nickel at their Panton North project in Western Australia’s Kimberley region, chasing an extension of the neighbouring 5-million-ounce Panton platinum group metals deposit.
Management says its more than 2000m campaign will target the BC1 and Panton West prospects, which attracted interest in previous fieldwork. Both prospects have recorded significant anomalies across electromagnetic and gravity surveys and in stream-sediment, soil and rock-chip samples.
The JV says neither of its prospects have been previously drilled.
The Panton deposits contains resources of 5 million ounces of palladium, platinum and gold combined and 238,000 tonnes of nickel, 43,000 tonnes of copper and 18,000 tonnes of cobalt, at a grade of 1.66 grams per tonne palladium equivalent.
The Panton North project forms part of a farm-in JV, in which Future can earn up to 70 per cent by free-carrying Octava to a decision to mine. Under the terms of the JV announced in January, Future will be required to fund $2 million of exploration to earn its 70 per cent share. Octava will then be required to contribute financially to maintain its 30 per cent interest from the point of a “decision to mine”, or dilute to a 1.5 per cent net smelter royalty.
Future has the right to apply for a mining lease over a portion of the exploration lease for use as part of the development of its adjoining 100 per cent-owned Panton project.
Analysts believe rising demand from the auto-makers industry and investors will soon push the global platinum market into its biggest deficit in years. Earlier this month the World Platinum Investment Council predicted a 983,000-ounce platinum deficit – the biggest since at least 2014 - after last year’s surplus of 854,000 ounces.
The numbers underline an emerging change in fortunes for platinum and its sister metal palladium, which are both used chiefly in vehicle exhausts to neutralise harmful engine emissions.
For years, rising demand and undersupply of palladium pushed prices higher, while lacklustre consumption and more plentiful availability kept platinum prices low. But the tide appears to be turning, adding to the excitement of what Octava and its partner may discover lurking below the surface.
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