Degussa joins Int’l Platinum in exploring platinum bets

Well into gold and oil and gas exploration, and soon to be a silver producer, International Platinum still has every intention of making a name for itself in platinum.

“We’re determined to become the leading platinum exploration company in North America,” President William Eplett said at the annual meeting.

International Platinum recently formed a joint venture with Degussa AG of West Germany covering exploration of 15 of the former’s more than 20 platinum bets. Degussa will contribute $3.25 million, over a 3-year period, of a $4.5-million budget and earn a 50% interest in the properties.

Mr Eplett said Degussa’s interest in his company stems from the latter’s need for a supply of platinum to be used in making catalytic converters for automobiles. Degussa, which operates a plant in Burlington, Ont., is a leading world refiner, trader and supplier of precious metals and precious metal products.

International Platinum is already involved in a joint venture with the Selco division of BP Canada at the Fox River platinum project near Thompson, Man. Selco is spending $1 million to earn a 60% interest in the property.

(Johnson Matthey reports world demand for platinum in 1986 was up by 30,000 oz over 1985, with South Africa supplying 83% of the total western demand last year.) Cobalt silver mine

International Platinum’s soon- to-be-producing silver property is located in the Cobalt, Ont. area and is a joint-venture project (50/50) with Silverside Resources. The start-up decision was announced in May, and Mr Eplett said the mine is expected to be in production by the fall.

The two firms are hoping to produce a total of 3,000 oz silver per day, at an estimated production cost of $4(C) per oz.

Involved in exploration work at several gold bets, International Platinum has received encouraging preliminary results from the Rowan Lake property located 25 mi southeast of Kenora in northwestern Ontario. The company’s joint- venture partner (50/50) in the project is Del Norte Chrome. Drilling continues on the property.

On the oil and gas scene, International Platinum’s wholly-owned Ipco Petroleum in the United States is involved in a joint-venture exploration agreement with Denver- based Quatro Energies for oil exploration in the Illinois basin.

A 12-to-15-well program is planned (the first well was drilled in April) and, according to Mr Eplett, International Platinum estimates cash flows from the wells could return the initial cost-per-well within four months.

The company reported a cash position of $1.4 million at the end of 1986.