A platinum deposit discovered close to Thunder Bay has caught the attention of an exploration company.

Transition Metals resumed drilling this week near Sunday Lake, about 30 km north of the city, in Jacques Township — and says its earlier drilling efforts were promising.

The president and CEO of Sudbury-based Transition Metals, Scott McLean, said the company previously drilled half a dozen holes. Four of those samples showed a healthy amount of platinum.

"After five years of intense work and fairly dedicated work and persistent work, we've been rewarded with what we think is a fairly significant platinum discovery in the district,” he said.

McLean said this is the first step of many that are needed before a mine is developed.

Benefits for mining supply companies

The manager of mining for the Thunder Bay Economic Development Commission said the work being done near Thunder Bay is encouraging.

"Those types of deposits have really … spurred interest in Lake Superior in the Thunder Bay area,” John Mason said.

“We're seeing other investment. What we hope from the Transition Metals discovery that'll spur more investment in mineral deposits of this type."

But the project is already a benefit to the city, Mason said.

"Thunder Bay can fully capitalize on working with Transition on their goals of moving this project forward as they advance through exploration."

With mounting interest in similar geological deposits around Lake Superior, Mason said he hopes the projects feed off of each other, to raise more capital, ultimately leading to new mines.

Businesses serving the mining sector will reap the benefit of any discoveries so close to Thunder Bay, he added.

Those service and supply companies include diamond drill companies, assay labs, and fuel companies.

“Everything from consumables [and] products on site, right down to food and accommodation in Thunder Bay, transportation in and out of Thunder Bay, that's all important,” Mason said.

Transition Metals at Sunday Lake

Transition Metals will soon resume drilling near Sunday Lake, about 30 km north of the city. (transitionmetalscorp.com)

Corrections

  • An earlier version of this story said that drilling at Sunday Lake will resume soon. It is now underway.
    Apr 11, 2014 2:30 PM ET