Canada-based exploration company Plato Gold has signed an option agreement with Rudy Wahl, to acquire 100% interest in the Pic River platinum group metals (PGM) project.

Pic River PGM project is located in Foxtrap Lake and Grain Township of Thunder Bay Mining District, in Ontario, Canada, covering approximately 2,126ha of area and holds a total of 105 claims.

Plato Gold president and CEO Anthony J Cohen said: “With palladium prices well over $2,000 per ounce, and the contiguous location of these claims to the gabbros of the Generation Mining property, I am looking forward to a methodical exploration program on this exciting piece of ground located just outside of Marathon, where we have a lot of good experience in our current operations.

“The infrastructure, Trans-Canada Highway, CP national rail line, Great Lakes ports, hydro transmission lines, and mining culture of Marathon are second to none.”

The acquisition of Pic River PGM project is subject to TSX venture exchange approval

Under the transaction agreement, Plato Gold will pay $125,000 in cash, along with issuing 1,650,000 of its common shares, and will spend $160,000 on joint exploration at the project.

Pic River PGM-Cu-Ni property was mapped by Walker et al. in 1993, which indicated the favourable layered gabbro series of rocks that host the PGE-Cu-Ni mineralized zone, similar to Generation Mining’s Sally, Willie, Skipper, Four Dams zones and the Marathon Deposits.

In addition, the ground magnetic surveys conducted in the past also indicated the magnetic highs, associated with the higher magnetic zones within the gabbroic rocks.

The PGM-Cu-Ni drill showed that a mineralised zone is located on the northern margin of the East Gabbro and is comprised of four mineralized zones.

The company said that its exploration will focus on defining the gabbroic units on the Pic River PGM-Cu-Ni property and determining the PGM-Cu-Ni mineralization.

Plato Gold is an exploration company, operating at projects located in Marathon Ontario, Timmins Ontario and Santa Cruz, Argentina.