Platinova sees cash flow from wollastinite in ’89

Platinova Resources (TSE),is a fast-moving 2-year-old company whose credo is to explore for and develop specialized commodities with high growth potential.

One of the first of such projects to possibly bear fruit, according to President Robert Gannicott, is the company’s wollastonite project near Deloro, Ont., which he told the annual meeting could be in production by about mid-1989.

A production decision is expected by the end of this year on the project, a joint venture with Cominco Ltd. (51%). Wollastonite is an industrial mineral, a naturally- occurring calcium silicate used in both the ceramics and plastics industries.

Gannicott said the mine would call for a capital outlay of around $6 million, and would provide Platinova with its first major cash flow. The capital requirement is an order of magnitude lower than would be expected for a comparable metals mine in a more remote location, Platinova says.

Government grants are also available for the project, Gannicott told shareholders, so that the financial risk entailed is “likely very little.”

Some 500,000 tons of indicated, open pit ore reserves have been outlined on the property, with a grade of 47% wollastonite in one zone, and a further 750,000 tons of inferred ore at a grade of 39% wollastonite in a separate zone.

It represents a minimum of 20 years production with considerable additional potential, the company says in the recently-released annual report.

A pilot plant scale separation test has been completed by Lakefield Research, and the Platinova president says this has succeeded in producing a good-quality wollastonite product.

Platinova also has interests in rare earths, platinum and gold.

A joint venture in Greenland, for instance, with Highwood Resources (TSE), 30%, and Aber Resources (VSE) 30%, is developing what it describes as one of the largest resources of zirconium, yttrium and heavy rare earths in an ice-free tidewater location near the southern tip of the island. Uses for these products are in ceramics, superconductors and specialty alloys.

Field work at the site this year will consist of diamond drilling to outline a reserve tonnage at a measured grade, as well as the drilling, blasting and shipping of a 200-ton bulk sample for a semi-commercial- scale pilot plant run.

Also in Greenland, Platinova is involved in two platinum prospects, one of which, at the southern tip of the island, is a joint venture with Boulder Gold, N.L. of Sydney, Australia. Boulder can earn a 50% interest by funding the first $500,000 of exploration.

Gold, too, is in Platinova’s plans. The company is involved in gold prospects in Alaska, in a joint venture project operated by Cominco Alaska Exploration; in the Timmins area of Ontario, and in Greenland.

At the Alaska Estelle project, a $1.1-million exploration program this year will focus on diamond drill testing of two high-priority areas, while further mapping and geophysical work will be used to upgrade other targets.