Anglo American Platinum (AAPTY-O) has agreed to take a controlling interest in Solitario Resources‘s (SLR-T) 854-sq.-km Pedra Branca platinum-palladium project in northeastern Brazil.
To earn an initial 51% stake, Anglo is required to foot the bill for US$7 million worth of exploration and development over four years. Anglo has committed to spending US$500,000 in the first year. The expenditures climb to US$3 million in the fourth year.
Amplats, the world’s largest primary producer of platinum, can boost its stake to 60% by completing a bankable feasibility study within 18 months of earning its 51% interest. The company can further increase its position to 65% by arranging project financing required for commercial production.
Denver-based Solitario will act as manager of the joint venture for the first three years; Anglo Platinum can take over in the fourth year. A drill rig is already on the property and initial results are expected in about a month.
Pedra Branca is home to at least 20 platinum group metal prospects situated in an area measuring 15 by 50 km. More than 12 of the prospects have been advanced to the drill definition stage. The Esbarro prospect is the most advanced with more 60 holes defining a shallow mineralized zone measuring 200 by 800 metres, and returning grades in excess of 2.5 grams PGMs per tonne.
Early last year, Solitario reported cutting new platinum-palladium mineralization at its Santa Amaro and Cedro 1 prospects at Pedra Branca.
All but one hole collared on Amaro, situated north of the original Pedra Branca area, returned PGM mineralization with platinum values between 0.5 and 1.98 grams platinum, and palladium values falling between 0.5 and 3.3 grams. A 5-metre section averaging 1.98 grams platinum and 1.77 grams palladium highlighted drilling.
The 2.5-by-1-km Cedro area hosts at least six prospects about 3 km west of Esparro. Drilling on Cedro-1 was highlighted by 2 metres running 1.77 grams platinum and 8.34 grams palladium starting at a down-hole depth of 13 metres.
Solitario says the ultramafic complex at Pedra Branca is geologically similar in composition to South Africa’s Bushveld district.
Solitario shares were trading 6 or nearly 10% higher at 70 in Toronto on Feb. 4.
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