Chinalco withdraws interest in Owendale – Platina

PERTH (miningweekly.com) – ASX-listed Platina Resources on Wednesday told shareholders that its plans to fast-track the development of the Owendale scandium and platinum deposit, in New South Wales, remained on track, despite Chinese major Chinalco Resources Corporation withdrawing its interest.

In September, Chinalco entered into a due diligence investigation and general negotiations with Platina, regarding its possible involvement in the development of Owendale.

However, Chinalco had advised Platina that it would not proceed with negotiations at this stage, given the highly volatile Chinese share market and the forecast lower aluminium production and prices for 2016.

Chinalco also cited recent internal policy changes as the main reason for its withdrawal from negotiations.

Platina said on Wednesday that despite Chinalco’s withdrawal, the company would proceed with its plans for Owendale, and would continue to seek a relevant major aluminium-focused company as a potential joint venture partner.

A previous scoping study into the Owendale project considered a simple openpit mining operation producing about 50 000 t/y of ore for treatment and concentration on site, based on an indicated and inferred resource of 24-million tonnes.

Mining was expected to take place in small campaigns two to three times a year from shallow openpit mines.

The study estimated that the project would require a capital investment of A$73.5-million, with life-of-mine all-in cash costs estimated at A$598/kg of scandium oxide.