Platina Reports $12.3M Cash and Gold Mineralisation at Challa, Drilling to Start at Xanadu
Platina Resources reports promising gold mineralisation at its Challa Gold Project and secures a government grant to fund deep drilling at Xanadu, maintaining a strong cash position of $12.3 million.
- Gold mineralisation discovered along major shear zone at Challa Gold Project
- Exploration Incentive Scheme grant awarded for Xanadu Deeps diamond drilling
- Xanadu drilling scheduled to start late January 2025
- Cash balance of $12.3 million at quarter end
- Chalice Mining terminates Mt Narryer joint venture, prompting reassessment
Exploration Breakthroughs at Challa
Platina Resources has reported significant progress in its December 2024 quarterly update, highlighting the discovery of gold mineralisation along a major shear zone at the Challa Gold Project in Western Australia's Yilgarn Craton. The recent aircore drilling program intersected notable gold grades, including a 12-meter zone averaging 0.66 grams per tonne from 100 meters depth, with a higher-grade 4-meter section at 1.7 grams per tonne. This marks the first greenfield gold intersection along a key structural splay, suggesting a mineralised corridor extending over 17 kilometers within the company’s tenure.
Government Support Fuels Xanadu Ambitions
In parallel, Platina secured an Exploration Incentive Scheme (EIS) grant of $54,750 to co-fund diamond drilling at the Xanadu Deeps target, located in the Ashburton Basin. The project lies near Kalamazoo Resources’ Mt Olympus deposit, which is currently under acquisition talks with De Grey Mining. The upcoming drilling campaign aims to test deeper sulphide mineralisation beneath previously identified oxide zones, with the first hole planned to reach 380 meters targeting a significant electromagnetic anomaly. Drilling is scheduled to commence in late January 2025, subject to weather and rig availability.
Strategic Portfolio and Financial Health
Platina’s portfolio remains diversified across several Western Australian gold projects, including Beete, Binti Binti, Brimstone, Jubilee, and Mt Narryer. Notably, Chalice Mining Limited terminated its joint venture at Mt Narryer during the quarter after investing over $400,000 in exploration activities. Platina plans to reassess the data and samples collected to determine future steps. Financially, the company ended the quarter with a robust cash balance of $12.3 million, supporting ongoing exploration and corporate activities. Operating cash outflows were modest at $313,000 for the quarter, reflecting disciplined expenditure.
Sustainability and Community Commitment
Platina continues to emphasize sustainable and responsible exploration practices, aiming to preserve local communities, environmental integrity, and cultural heritage. The company is actively negotiating heritage agreements, particularly at the Brimstone and Jubilee projects, to ensure respectful and compliant access to prospective areas.
Looking Ahead
The forthcoming drilling at Xanadu Deeps represents a critical test of Platina’s deeper gold potential and could unlock significant value if successful. Meanwhile, the encouraging results at Challa provide a new frontier for exploration in a historically prolific gold region. Investors will be watching closely as Platina advances its drilling programs and evaluates the impact of Chalice’s withdrawal from Mt Narryer.
Bottom Line?
Platina’s strategic drilling plans and solid cash reserves position it well for a pivotal year in gold exploration.
Questions in the middle?
- Will the Xanadu Deeps drilling confirm the presence of significant sulphide gold mineralisation?
- How will Chalice Mining’s exit from Mt Narryer affect Platina’s exploration strategy there?
- What are the implications of the new gold discoveries at Challa for resource estimation and project development?
