Platinex Inc. (CSE:PTX) told investors it has acquired a major claim package which contains a historical resource within the existing Central Area boundary of its W2 Copper-Nickel-PGE Project in Northern Ontario’s ‘Ring of Fire.’
The company said the acquisition of 19 single-cell mining claims from Gungnir Resources Inc. (TSX-V:GUG, OTC:ASWRF) as well as 13 adjacent claims completes the consolidation of the W2 project area.
“This acquisition gives the company full control of W2 including all of the historical resource area,” Platinex president and CEO Greg Ferron commented in a statement.
“This not only improves the project’s economic potential but also enables us to execute a complete exploration program along the 7.5 km mineralization zone which shows potential for expansion at depth and along strike.”
Platinex noted that a large portion of historically identified mineralization zones lie on the 32 newly-acquired claims, which cover 6.3 square kilometres and include 42 out of 73 historical drillholes drilled within the Central Area of W2.
Drill hole intersections completed by previous owners include 0.92% copper and 0.73% nickel over 18.2 metres (m) as well as 0.48% copper and 0.15% nickel over 32m.
Most of the historical drillholes are shallow at less than 150m.
Additionally, the new claim areas are mainly composed of mafic to ultramafic intrusive rocks that are associated with electromagnetic (EM) anomalies. They are also in proximity to lithological contact between mafic volcanics/metasedimentary rocks and mafic-ultramafic intrusive rocks which is interpreted to be an important factor for controlling higher-grade copper-nickel mineralization.
Transaction terms
Under the terms of the transaction, Platinex paid C$30,000 and issued 3 million of its shares to Gungnir at a deemed price of $0.05 each. It has also granted Gungnir a 2% net smelter royalty on the 19 claims and may repurchase 1% for C$500,000.
W2 is permitted for a Phase 1 exploration program with mineral exploration permits in place for up to 31 drill pads across the property.
Additional desktop work, including the further compilation of greenfield areas, and modelling of airborne geophysical data is ongoing.
The company said it is finalizing plans for its 2024 exploration program at W2.
Platinex creates shareholder value through the opportunistic acquisition and advancement of high-quality projects in prolific Ontario mining camps.
Its current assets include a 100% ownership interest in the W2 Copper-Nickel-PGE Project near the 'Ring of Fire' in northern Ontario and a 75% interest in the South Timmins Mining joint venture with Fancamp Exploration.