Platinum Australia Limited (ASX: PLA; AIM: PLAA) and Japan Oil, Gas and Metals National Corporation (JOGMEC) have struck an agreement by which JOGMEC will earn an initial 35% interest in the Stellex North Project in South Africa, by providing US$3.5 funding for exploration over the next 4 years.
PLA managing director John Lewins said the agreement provided the company with the necessary funding to complete its planned exploration programme over the next four years.
PLA expects to put significant funding into more advanced projects such as Kalplats and Rooderand to bring them into production.
PLA will remain manager of the project.
PLA anticipates increasing its interest in Stellex following the expenditure of an initial $30,000 on work undertaken on the project to date, as provided under the Joint Venture Agreement.
A Prospecting Right has been issued to Stellex covering the project and a detailed aeromagnetic survey and initial geochemical sampling program on the project area is due to be completed in the current quarter.
The Stellex North PGM Project is located 330km west of Johannesburg and adjacent to the Kalplats (PLA earning 49% from ARMplatinum) and Kalplats Extended (PLA 50%) Projects. The Kalplats Project currently has a Measured, Indicated and Inferred JORC estimated resource of 6.4 Moz 3E.
Stellex North Project covers a strike length of 26 kilometres of the Kraaipan Greenstone belt immediately to the north of the Kalplats Extended Project.
PLA believes that this project has the potential to host extensions of the known Kalplats style mineralisation.
An aeromagnetic survey of the project area and detailed soil geochemistry program is planned for the project area in 2010.
Disclosure: The author holds no positions in the company