The Kimberley's credentials as a minerals province may soon get a boost as Sally Malay Mining Ltd investigates the potential of a platinum-palladium joint venture with Platinum Australia Ltd.
On the heels of an unsuccessful joint venture with Thundelarra Exploration Ltd, the terms of the agreement require Sally Malay to spend up to $750,000 on a bankable feasibility study into mining high grade ore from the Panton project, 60km south of the Sally Malay project, and processing it through the Sally Malay plant, which is expected to have additional spare capacity early next year.
Sally Malay will earn a half stake in the first 1.5 million tonnes mined, with an option to extend the agreement to cover more ore.
The Panton project holds an estimated resource of 14.3Mt at an average grade of 5.2 grams per tonne of platinum group metals.
Commenting on the agreement, PLA managing director John Lewins said: "This agreement brings the commencement of commercial production from the Panton PGM project a step closer. The opportunity to work with Sally Malay and utilise their plant and infrastructure will considerably reduce the capital cost necessary to develop the Panton project. This, combined with the very significant increases in project revenue from the increased metal prices will enhance the project economics considerably."
PLA recently completed a listing on the London Stock Exchange's Alternative Investment Market, adding to its Australian Stock Exchange presence.
In October, Sally Malay managing director Peter Harold told WA Business News the miner was on the lookout for additional ore to feed its plant, which will have extra spare capacity when open pit mining at the Sally Malay project ceases early next year.
If followed through, the deal will take the number of mineral miners in the Kimberley to two after Sally Malay's joint venture with Thundelarra Exploration to commission a similar feasibility study for the Copernicus nickel deposit fell apart earlier this year.
