Juniors shift to PGMs

With gold prices still hovering around US$300 per oz., exploration companies are increasingly seeking other commodities, including platinum group metals (PGM), according to a report published by Halifax, N.S.-based Metals Economics Group.

The report states that several factors are responsible for inducing companies to explore for PGMs, not the least of which are higher prices and targets close to home.

The number of nonferrous exploration companies reporting PGMs as one of their targets rose sharply in 1999, to 30 of 750 surveyed companies from 17 of 650 companies surveyed in 1998. In the past year, another 72 companies became involved with PGM targets in some way, through options agreements or staking.

PGM producers focus most of their exploration near existing mines, but 92 juniors are involved in as many early-stage platinum group metal targets in 14 countries.

In Canada, exploration for PGMs is gaining momentum in northern Ontario.