Platinex Acquires W2 Copper-Nickel-PGE Project Near Ring of Fire


After buying the W2 Copper-Nickel-PGE challenge in Ontario, Platinex adopted a brand new twin technique by going again to its roots, which concerned platinum group parts (PGE), however can also be within the means of revitalizing its massive and potential Shining Tree gold exploration challenge within the Abitibi Greenstone Belt, additionally in Ontario, writes The Important Investor.

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Platinex Inc. (PTX:CSE; 9PX:FSE) is creating fairly a pretty asset portfolio in Ontario, Canada. The corporate already owns the extremely potential and strategically positioned district-scale Shining Tree gold challenge and really just lately acquired the W2 Copper-Nickel-PGE challenge. Moreover, Platinex holds quite a few web smelter return (NSR) royalties in its portfolio.

Within the final yr, administration and board have been strengthened, and a high-quality core investor base got here in following these adjustments, offering further worth and assist. The inventory is coming off very long time lows, and stays at a pretty entry level for brand spanking new buyers. Backed by its new investor base, the corporate is seeking to increase cash quickly.

It’s anticipated that sturdy drill outcomes, optimistic metallic worth actions, and renewed enthusiasm within the Ring of Hearth after the just lately finalized acquisition of Noront by Wyloo Metals might present substantial catalysts for share worth appreciation in 2022. Potential new and complementary asset acquisitions might present an extra enhance. As well as, within the first half of 2022 the corporate might be taking a look at different strategic transactions to probably improve shareholder worth with out vital dilution.

Traders are inspired to evaluation the Key Factors on the finish of this text for a fast snapshot of the corporate.

Introduction

Platinex is a junior mining firm exploring mineral properties in Ontario, Canada. The corporate has adopted a twin technique: it would proceed its gold exploration actions on the Shining Tree gold challenge in southwest Timmins, and can also be getting into the battery metals house now via the acquisition of the W2 Copper-Nickel-PGE challenge within the Ring of Hearth area. Demand for battery metals comparable to copper, nickel and PGEs (platinum group parts together with platinum and palladium), is at historic highs, with future progress anticipated because of the unstoppable electrification and sturdy power paradigm shift.

The Shining Tree gold challenge has been the corporate’s primary focus for a very long time, because it has been within the firm since 2008. After a quiet interval through the 2013–2015 bear market, the corporate approached Shining Tree with renewed vigor in 2017, increasing the challenge over 5 instances, and finishing reconnaissance exploration applications together with channel sampling, mapping, and gold in until sampling, with sturdy outcomes. Extra just lately an airborne magnetics survey was accomplished, and a LIDAR survey might be accomplished quickly.

After this, drill targets might be chosen, with the corporate aiming to start the subsequent drill program at Shining Tree within the close to time period, pending the closing of an upcoming capital increase. The Shining Tree asset is seen as a strategic asset for the corporate. With a big land package deal in an energetic camp together with Alamos Gold (AGI.TO), IAMGold (IMG.TO), Aris Gold (ARIS.TO) and lots of high quality juniors, there may be an actual alternative for the Shining Tree camp to comprise one other Coté Gold deposit, which positioned to the west.

On January 17, 2022, the corporate expanded its horizon, and purchased the big W2 Copper-Nickel-PGE challenge from a non-public proprietor, returning the corporate to its historic roots and in step with the identify Platinex. As copper and nickel are each crucial to the continuing paradigm shift in direction of electrification, the W2 challenge suits completely with the brand new technique. The following step for Platinex at W2 might be to finish a complete information compilation and acquire an exploration allow. Following this, the corporate will be capable of start drilling of targets which have already been recognized however stay untested, and perform prospecting and geophysical surveys to determine and refine new targets.

W2 challenge

It appears Platinex Inc. has timed its acquisition of a 100% curiosity within the W2 challenge properly, as Wyloo acquired close by Noront (NOT.V) for C$616.9 million after a bidding struggle with a formidable competitor: BHP. As BHP is understood for doing extraordinarily thorough due diligence on its transactions, it appears sure the corporate noticed compelling causes to bypass the same old Ring of Hearth objections, as this space nonetheless has been underdeveloped as a consequence of lack of infrastructure. The Ring of Hearth is seen as some of the promising mining alternatives in Ontario for greater than a century.

After a complete of C$278 million in exploration has been carried out within the Ring of Hearth to date, quite a few vital discoveries involving chromite, copper, nickel, zinc, gold and PGEs are ready for the primary initiatives on constructing mining tasks and accompanying infrastructure, probably with the assistance of Ontario, the province with probably the most revenues coming from mining throughout Canada.

Within the meantime, Platinex might be exploring its new challenge as quickly as attainable, to probably show up a major deposit. The W2 challenge has seen vital exploration to date, starting from sampling to airborne surveys to eight,772 meters (m) of drilling. Drill outcomes for the property have been spectacular:

  • 6 m of 0.56% copper equal (CuEq) or 0.956 grams per tonne (g/t) palladium equal (PdEq) (LH-01-06)
  • 6 m of 0.57% CuEq or 0.971 g/t PdEq together with 17 m of 1.08% CuEq or 1.86 g/t PdEq (LH-01-05)
  • 42 m of 1.02% CuEq or 1.8 g/t PdEq together with a excessive grade 4.5 m part of 4.52 g/t PdEq (LH-01-02)

Most outcomes have been intercepted near floor, indicating substantial open pit potential. Quite a few targets have been recognized, and the T5 goal seems to have the identical geophysical signature as Eagle’s Nest (Noront/Wyloo).

Due to this fact it’s seemingly the corporate will begin drilling at these targets quickly after permits are granted.

Shining Tree

Apart from the W2 challenge, Platinex has additionally assembled one other spectacular property: the 100% owned Shining Tree gold challenge within the Abitibi Greenstone Belt in Ontario, dwelling to a number of the richest gold mineralization worldwide, with complete manufacturing surpassing a staggering 180 million ounces (Moz). The corporate has expanded this asset into a formidable 21,720 hectare land package deal, positioned strategically in between adjoining tasks owned by IAMGold (the aforementioned Coté Gold > 6.5 Moz gold (Au), going into manufacturing in 2023, and Gosselin), Aris Gold (Juby, 2.3 Moz Au) and Orefinders (ORX.V) (Knight).

As may be seen, the property encompasses over 20 km of the potential Ridout-Tyrell Deformation Zone, which can also be host to the aforementioned Coté Gold and Juby deposits. The Shining Tree challenge is positioned on the crossing of the Larder Lake Fault, which is dwelling to a number of the largest gold deposits in Canada, and the Michiwakenda Lake Fault. Platinex has accomplished gold in until sampling up to now, outlining vital anomalies:

Platinex additionally accomplished a 51 drill gap program some time in the past on the Herrick goal, and hit gold at nearly each gap, with highlights accounting for 7.15m @2.76 g/t Au, 46.3m @0.65 g/t Au, 7.2m @2.38 g/t Au, 14.1m @1.2 g/t Au and 12.2m @1.47 g/t Au, all inside open pit depths.

Mineralization on the Herrick goal is open at depth, and administration hopes to seek out extra mineralization at depth, as a number of deposits within the Abitibi present these traits. Apart from Herrick, there are lots of extra targets to be drill-tested, and administration is at the moment outlining plans for this in the meanwhile as talked about.

Royalty portfolio

Platinex additionally holds an attention-grabbing portfolio of royalties on tasks positioned in Ontario, with for instance a 2.5% NSR on Huge Trout Lake (PGM-Ni-Cu-Cr), a 1% NSR on a declare block within the Ring of Hearth (Au-Ni-Cu-PGM-Cr) and a 1% NSR on part of the Shining Tree challenge. The corporate additionally holds a 2% NSR from Newmont (NGT.TO) on the Sonia-Puma Au-Cu property in Chile. Platinex’s present technique for its royalty portfolio encompasses the creation of attention-grabbing royalties on each Shining Tree and the brand new W2 property, in flip creating a considerable royalty portfolio that sooner or later might be monetized by promoting or spinning out.

Share construction

There are 161.65  million shares excellent (absolutely diluted 214.65  million), 38.1 million warrants (common strike worth of C$0.095) and incentive inventory choices issued to the tune of 15 million choices. Platinex has a present market capitalization of C$7.2 million primarily based on the January 18, 2022 share worth of C$0.045. 

Platinex Inc, 1 yr timeframe (Supply: tmxmoney.com)

The present money place of Platinex is roughly C$0.5 million, and the corporate might be seeking to increase further funds quickly. Shares are tightly held, as administration holds at least 12% of the present shares excellent (CEO Greg Ferron holds 2%), Treasury Metals (TML.TO) holds 10%, Alamos Gold 3.5%, European HNW’s with sturdy ties to administration maintain 25.5%, and the corporate additionally enjoys roughly 7% institutional possession.

Administration

CEO Greg Ferron: Mr. Ferron has 20 years of mining business and capital markets expertise. He has held numerous senior stage roles in mining, company finance, company growth, and investor relations – together with at Laramide Sources Ltd. (LAM.TO), Treasury Metals Inc., TMX Group and Scotiabank. Mr. Ferron has vital numerous merger and acquisitions expertise, together with Laramide’s Westwater ISR challenge acquisition, and extra just lately the Goldlund challenge acquisition as CEO of Treasury Metals, creating one among Canada’s largest gold builders. Mr. Ferron can also be a director of Fancamp Exploration Inc (FNC.V).

Non-Govt Chairman James Trusler: Chairman of the Board of the corporate, 1998 to current; CEO and President of the corporate 1998–2018, 2019 to 2021; President, J. R. Trusler & Associates (mineral guide), 1995 to current. Geological Engineer with over 45 years of exploration expertise with a historical past of discovery (a number of Ni-Cu-PGM deposits on the Raglan Nickel mine, owned by Glencore) and strategic acquisitions of world-class scale gold, uranium and Ni-Cu-PGE deposits.

Director Felix Lee: Mr. Lee is an financial geologist and senior government with over 30 years of enterprise and challenge administration expertise within the minerals business each in Canada and internationally. Mr. Lee accomplished his tenure as Director and Principal Guide to CSA International Canada in 2019 and was beforehand proprietor and President of the predecessor Toronto-based geological consultancy ACA Howe Worldwide Restricted. Felix Lee is at the moment the President of Prospectors and Builders Affiliation of Canada (“PDAC”) the most important such mining business group on the earth.

Finance Committee: Frank Hoegel: His background contains greater than 20 years of direct expertise within the mining business, and a profitable observe file as a global financier/investor. He at the moment manages a pure useful resource fund, sits on the advisory board of Idea Capital Administration, and sits on the board of a number of TSX Enterprise listed corporations.

Finance Committee: Olivier Crottaz: Impartial asset supervisor who based Crottaz Finance. 30 years within the Swiss banking enterprise as senior portfolio supervisor and tactical asset allocator at UBS and Credit score Suisse as managing director.

Technical Committee: Lorne Burden: Senior supervisor with over 30 years expertise, just lately Supervisor Company Improvement and Senior Geologist Logistics at Royal Nickel Company. Former Director of PDAC.

Technical Committee: Blaine Webster: Skilled Geophysicist, Found 4 Moz Au property, Accomplished 1,500 geophysical surveys in 35 international locations as President of JVX Ltd. Former President Goldeye Exploration Ltd. President Golden Mallard Corp.

Key factors

  • On January 17, 2022, Platinex acquired the W2 Copper-Nickel-PGE property in Ontario, near the potential Ring of Hearth space, which is dwelling to massive chromite, base-, and valuable metallic deposits
  • Platinex additionally absolutely owns the potential 21,720 hectare Shining Tree gold challenge, which is positioned strategically between different gold tasks close by
  • The Shining Tree gold challenge incorporates 21 km of the prolific Ridout-Tyrell Deformation Zone, which in flip incorporates the 6.5 Moz Coté Gold deposit (IAMGold), and the two.3 Moz Juby gold deposit (Aris Gold)
  • The corporate plans to conduct exploration applications on each tasks in 2022
  • Platinex additionally has an attention-grabbing royalty portfolio on copper, zinc, chromite, gold and PGE properties in Canada and Chile.
  • Platinex has skilled administration, and enjoys sturdy monetary backing by Treasury Metals, just a few establishments and a bunch of highly effective European buyers
  • Platinex is valued at a pretty entry level in the meanwhile, with a tiny market cap of simply C$7.2 million

With its latest acquisition of the W2 Copper-Nickel-PGE challenge simply accomplished as a part of its new twin technique, a brand new CEO, and new strategic backers coming in, and the big, potential Shining Tree gold challenge able to discover, Platinex appears to be shifting gears now. After the upcoming increase is closed, the corporate might be able to execute on new exploration applications for each W2 and Shining Tree, which have already got seen sturdy outcomes up to now and have a number of mineralized potential. It will likely be attention-grabbing to see how far Platinex administration can take these two massive, very intriguing land packages.    

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The Important Investor is a publication and complete junior mining platform, offering evaluation, weblog and newsfeed and all kinds of details about junior mining. The editor is an avid and significant junior mining inventory investor from The Netherlands, with an MSc background in development/challenge administration. Quantity cruncher at challenge economics, in search of high-quality corporations, largely progress/turnaround/catalyst-driven to keep away from an excessive amount of dependence/affect of long-term commodity pricing/market sentiments, and infrequently in search of long-term deep worth.

Getting burned up to now himself at junior mining investments by following overly optimistic sources that most of the time prevented to say (hidden) dangers or crucial flaws, The Important Investor realized his lesson properly, and goes just a few steps additional ever since, offering a contemporary, extra in-depth, and significant imaginative and prescient on issues, therefore the identify.

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The writer is just not a registered funding advisor, and at the moment has an extended place on this inventory. Platinex Inc. is a sponsoring firm. All info are to be checked by the reader. For extra data go to www.platinex.com and skim the corporate’s profile and official paperwork on www.sedar.com, additionally for essential threat disclosures. This text is offered for data functions solely, and isn’t supposed to be funding recommendation of any form, and all readers are inspired to do their very own due diligence, and discuss to their very own licensed funding advisors prior to creating any funding selections.

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