Platinum from a seagull: who would have thought?

Lightning doesn't strike twice, but sometimes platinum does.

Just ask Platinum Group Metals Ltd. (PTM) president Michael Jones.

He is busy these days readying his geology team to explore a new platinum-bearing layer 52 kilometres southeast of Canada's only primary producing PGE discovery, the Lac des Iles mine near Thunder Bay.

"It is such a rare gem," Jones says. Last December, drill results revealed the Seagull Property to be comparable to their South African platinum mines. A 1.27 metre cut from within the broader mineralized zone returned a grade of 4.36 grams per tonne, six platinum group elements including gold. Even more, the platinum-palladium ratio of the newly discovered zone is almost one to one, which makes it a "desirable economic target."

The occurrences are found to be 1.5 billion years younger than other deposits around the world with higher values of the rare osmium and iridium found in the bearing layer.

"In our view, this is one of the most significant new occurrences of platinum group elements in North America and it is very exciting to use our active South African experience on a reef discovery in Thunder Bay."

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The reef-style mineralization is associated with a layer of rock that has cooled from molten seepage and has the potential of covering large areas with excellent grade quality, he says.

That's important, but is too early to detect the mine potential. In the next phase of exploration, geologists will take a broader view of the layer to determine how big the discovery really is. Previous drill holes indicate mineral discoveries some 750 metres apart.

"We know it has some scale to it," Jones says.

Drilling has begun approximately 300 to 500 metres below surface. It will take a couple of years to finish the extensive exploration projects, but Jones will have a better idea of what the company is dealing with as the results are revealed.

Platinum has been in short supply for the last couple of years. China is the single-largest consumer of the precious metal which, at $800 per ounce, is selling for almost double the $450 it was two years ago.

Chasing opportunity

Jones saw the growing trend toward platinum in the marketplace, particularly in Asia, and decided it was worth his while to open shop.

PTM could earn a 70 per cent interest in the Seagull Property under the terms of an option agreement announced last September. The deal would give a 15 per cent interest allocated to East West Corp., and the remaining 15 per cent to Canadian Golden Dragon Resources Ltd.

Their recent partnership with Anglo Platinum was forged to pursue a platinum exploration project covering 67 square kilometres on the western Bushveld Complex in South Africa. PTM, the lead operator, began drilling last month and the intent is to expand along the known resources area. Geological mapping and drilling databases, which includes reef information from occurrences in South Africa, have been compiled from both companies to obtain a general understanding of the mineral elements.

PTM also has active property elsewhere in Northern Ontario, with Agnew Lake Property, 70 km west of Sudbury and the Lakemount Property, 10 km east of Wawa.

www.platinumgroupmetals.net

By KELLY LOUISEIZE

Northern Ontario Business