Platinex Inc. (CSE:PTX) said it has closed the previously announced option agreement through which it has the right to acquire a 100% interest in the Muskrat Dam critical minerals project in northwestern Ontario.
The Toronto-based company said Muskrat Dam is 125 kilometers (km) northeast of Frontier Lithium's PAK lithium project and 125 km northwest of Newmont’s Musselwhite gold mine.
The project comprises 671 unpatented mining claims over six property blocks, which together cover 12,925 hectares in the prospective Muskrat Dam Lake (MDGB) and Rottenfish (RGB) greenstone belts. The project includes the Axe Lake Property, which shows the potential to host lithium-bearing pegmatites.
READ: Platinex acquires Muskrat Dam critical minerals project in northwestern Ontario
The company said that a major high-strain zone, the northwest-trending Axe Lake deformation zone (ALDZ), is interpreted to pass through the property. The major structural zone potentially provided pathways for granitic melts and evolving pegmatites, potentially lithium and other rare metals-bearing, to be emplaced into volcano-sedimentary rocks on the property.
Platinex said it will share details about the work program, and the technical advisors assisting it with the project “early in the new year.”
Additional transactions
Platinex also said it has completed two additional transactions. At Shining Tree, the firm acquired a 100% interest in two claims in Leonard township. The claims lie within Target Area No. 5, which is host to potential splay structures like the Tyrrell Fault hosting the Juby and other gold deposits in adjacent Tyrrell township.
The area is characterized by a magnetic high coincident with the folded iron formation and is considered a favourable setting for gold deposits. Platinex issued 150,000 shares to an arm’s length party for the claims. The shares are subject to a statutory four-month hold period.
Platinex’s district-scale 225 square-kilometer Shining Tree Gold project is in Ontario’s Abitibi region. The project covers a significant portion of the Ridout-Tyrrell deformation zone that trends as far west as Newmont’s Borden Mine, through the area of IAMGOLD’s Cote Gold Deposit, and across Aris Gold’s Juby project. Platinex has a 100% interest in the Shining Tree Gold project.
At the W2 Copper Nickel PGE project, Platinex closed an option agreement with two arm’s length parties, through which it has the right to acquire a 100% interest in 52 unpatented mining claims. The claims are within the boundary of Platinex’s existing land package.
The company paid $5,000 and issued 500,000 common shares on closing. The shares are subject to a statutory four-month hold period. To earn its 100% interest, Platinex must make additional payments totaling $35,000 over the three-year term of the option agreement.
Upon exercising the option, the vendors will retain a 1.5% net smelter return (NSR) royalty on the claims. Platinex has the right to repurchase a 0.5% NSR royalty at any time for $500,000, leaving a total 1.0% NSR royalty on the claims.
The W2 project is a district-scale land package comprising 836 unpatented mining claims covering 17,665 hectares at the southwestern extent of Ontario’s Ring of Fire. W2 controls one of the major Oxford Stull Dome complexes, including the Lansdowne House Igneous Complex (LHIC), which is highly prospective for copper-nickel, platinum group element (PGE), and chromite deposits, said the company.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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