Platinova receives backing from Greenland

Toronto-based Platinova (PAS-T) has secured a private placement with the government of Greenland.

Greenland has purchased 1.4 million Platinova shares at $1.51 per share, the total value of which is $2.1 million.

Most of Platinova’s exploration is focused on the island, and its government is one of the company’s largest shareholders.

Proceeds will be used to fund two advanced-stage zinc projects, as well as work on a diamond exploration property.

In Peary Land, in far-Northeastern Greenland, drilling is being carried out in an effort to expand the higher-grade core of an extensive sedimentary-exhalative (sedex) zinc deposit. The resource is known to exceed 20 million tonnes grading 7% zinc and 1% lead, within which is a core of 5.7 million tonnes of 9% zinc and 1% lead. Platinova reports that the first two holes have expanded the rich core area.

In the central-western portion of the island, a feasibility study evaluating pillar recovery from the Black Angel mine is nearing completion. Two million tonnes grading 10.7% zinc, 3.6% lead and 25 grams silver per tonne remain in the mine’s pillars, and Platinova is considering extracting a substantial proportion of this material for shipment and sale to an existing milling operation with excess capacity.

In the southeast, a 50-50 joint venture between Platinova and Goldcorp (G-T) has been awarded an exploration licence covering a new gold showing discovered by a crew of government geologists. The mineralization is exposed in shear zones up to 20 metres wide within volcanic and sedimentary rocks over a strike length of 1 km. The gold mineralization appears to be associated with quartz-rich zones up to 5 metres wide.

Goldcorp will fund the initial phase of work, designed to evaluate targets for drill testing, and Platinova will participate at the drilling stage.