Owendale Scandium and Platinum Project, New South Wales (PGM: 100%)

Highlights:

  • Potential to become Australia’s first scandium producer with platinum credits
  • Capital cost estimate of A$73.5 million
  • Life of mine all‐in cash costs estimated at A$598 per kilo scandium oxide

The Owendale Project is 80km northwest of Parkes and 350km west of Sydney in central New South Wales. It is one of the world’s highest grade and largest tonnage laterite-hosted scandium deposits, and has the potential to become Australia’s first scandium producer with cobalt, platinum and nickel credits.

Platina completed an updated Mineral Resource estimate for Owendale in February 2017 to incorporate results of re-assaying of samples and previous XRF assays.

The updated Mineral Resource statements include:

At a cut-off of 300 ppm Sc, the scandium Mineral Resource is:
Measured Mineral Resource 4.4 Mt @ 405 ppm Sc
Indicated Mineral Resource 6.4 Mt @ 380 ppm Sc
Inferred Mineral Resource 17.1 Mt @ 385 ppm Sc
Total Mineral Resource 27.9 Mt @ 385 ppm Sc
Containing a total in-situ content of 16,500 tonnes of scandium oxide

At a higher cut-off of 600 ppm Sc, the scandium Mineral Resource is:
Measured Mineral Resource 0.12 Mt @ 655 ppm Sc
Indicated Mineral Resource 0.12 Mt @ 660 ppm Sc
Inferred Mineral Resource 0.44 Mt @ 645 ppm Sc
Total Mineral Resource 0.68 Mt @ 650 ppm Sc
Containing a total in-situ content of 670 tonnes of scandium oxide

At a separate cut-off of 0.1% Co, the cobalt Mineral Resource is:
Measured Mineral Resource 2.3 Mt @ 0.17% Co
Indicated Mineral Resource 2.3 Mt @ 0.15% Co
Inferred Mineral Resource 4.4 Mt @ 0.13% Co
Total Mineral Resource 9.0 Mt @ 0.15% Co
Containing a total in-situ content of 13,200 tonnes of cobalt

A Scoping Study for Owendale completed in March 2015 by SNC-Lavalin Australia Pty Ltd supported the economic and technical viability of the project. A base case for the project is a simple, open-pit mining operation, mining approximately 50,000 tonnes of ore per year for treatment and concentration on site to produce 30 tonnes of scandium at 99.9% purity, with a mine life of 70 years.

Capital costs are estimated to be A$73.5 million with all-in operating cost estimate of A$598 per kilogram of scandium oxide produced.

Platina plans to undertake further drilling at Owendale in 2017 while continuing work on a Feasibility Study for the project, due in early 2018.

Platina hopes to secure an off-take agreement to enable the development of Owendale.