JUNE 1, 2021
June 1, 2021 – Toronto, Ontario – Final drill results from the Company’s 2,000-meter drill program at the Haukiaho Trend, a distinct zone approximately 20 kilometers south of the Company’s primary target area Kaukua South, have returned significant widths and grades, including 48 meters at 2.2 g/t Palladium-equivalent (“Pd_Eq”) with a wider 116 meters zone grading 1.2 g/t Pd_Eq (Hole LK21-074), on the Läntinen Koillismaa (“LK”) PGE-Ni-Cu project in Finland, said Palladium One Mining Inc. (“Palladium One” or the “Company”) (TSXV: PDM, FRA: 7N11, OTC: NKORF) today.
A total of 12 holes (1,943 metres) were drilled on the Haukiaho trend. This release contains the results from the final 5 holes of this program. The drilling was designed establish sufficient drill density to prepare a National Instrument 43-101 resource estimate at Haukiaho.
“The final batch of Haukiaho results is highly encouraging, not only has it filled in a key 200m gap in the historic resource drilling but also found average grades and widths above those of the historical resource estimate. These latest results also extended the core Haukiaho zone to the east and into a second large IP anomaly that was delineated in 2020. This extension indicates substantial near-term upside at Haukiaho.” Said Derrick Weyrauch, President and CEO.
- A 200m gap in the middle of the Haukiaho historic resource has been infilled and found to contain above average grades and widths (Figure 3.)
- Holes LK21-077 and 078 located, 50 and 100 meters east of the historic resource indicate strong mineralization continues to the east in the Central Drill Target area (Figure 2.)
- 116.0 meters grading 1.20 g/t Pd_Eq in hole LK21-074 starting 99 meters down hole
- Including 48.5 meters grading 2.15 g/t Pd_Eq
- Including 7.3 meters grading 3.09 g/t Pd_Eq
- 70.3 meters grading 1.11 g/t Pd_Eq in hole LK21-075 starting 12 meters down hole
- including 23.2 meters grading 1.84 g/t Pd_Eq
- Including 4.5 meters grading 3.26 g/t Pd_Eq
- 43.0 meters grading 1.27 g/t Pd_Eq in hole LK21-077 starting 5 meters down hole
- including 14.5 meters grading 2.01 g/t Pd_Eq
- 39.2 meters grading 1.63 g/t Pd_Eq in hole LK21-078 starting 144 meters down hole
- including 11.6 meters grading 2.73 g/t Pd_Eq
- The historic Haukiaho resource is shallowly drilled, mostly above 200m below surface and very amendable to open pit extraction methods.
Haukiaho Historic Resource Estimate
In the 1980’s, Outokumpu (a Finnish State-run mining company) prepared a resource estimate using very widely spaced holes along much of the Haukiaho trend, which estimated 7 million tonnes grading 0.38% Cu and 0.24% Ni, however importantly, no PGE assays were undertaken. The cut-off grade used was a 0.7% Copper_equivalent (defined as Cu% + 2 x Ni%).
Subsequently, in 2013, Finore Mining Inc. completed a non-pit constrained NI43-101 historic resource estimate, over a much smaller strike length. This resource encompassed widely spaced drilling with a focus on maximizing tonnage, not grade. Using a 0.1 g/t Pd cut-off, they estimated a resource of 1.13 million Pd_Eq ounces within 23.2 million tonnes grading 1.51 g/t Pd_Eq* (0.31 g/t Pd, 0.12g/t Pt, 0.10 g/t Au, 0.21% Cu, and 0.14% Ni) (See news release August 12, 2019 and May 7, 2020). For comparison purposes using recent spot prices the historic Haukiaho resource has a Pd_Eq** grade of 0.97g/t Pd or 1.37g/t Au_Eq** grade.
The Haukiaho trend is 17 kilometers long and the historic 2013 Haukiaho resource prepared by Finore only covers less than 2 kilometers of this trend. This knowledge coupled with the historic work by Outokumpu point to the enormous potential to significantly add resources at Haukiaho with disciplined execution of exploration activities.
While similar to the Kaukua deposit (See new release, September 30, 2019), the Haukiahio trend is more copper-nickel rich. At Kaukua, approximately ~1/3 of the in-situ value per tonne is copper-nickel, while at Haukiaho copper-nickel represent approximately ~2/3s of the in-situ value.
Figure 1. LK Project location map showing 43-101 compliant Kaukua deposit and historic Haukiaho resource along with 2020 IP grids (blue lines) and current 2021 IP grid areas (black boxes). Yellow lines represent Exploration Permits, red lines represent Exploration Reservations held by the Company.
Figure 2. Plan map of Haukiaho 2020 IP chargeability anomalies, drill target areas and 2020 & 2021 DDH locations.
Figure 3. Plan map of the Haukiaho historic 2013 Finore resource estimate represented by the 0.5g/t Pd_Eq shape with Palladium One drill holes labelled.
Figure 4. Haukiaho Cross section showing holes LK21-074, and 1960’s era Outokumpu hole R614 which was incompletely sampled and was not analysed for PGEs.
Table 1: Palladium One Haukiaho drill results
|LK21-067||No Significant values (collared in footwall rocks)|
|LK21-072||No Significant values (ended before zone)|
Palladium equivalent is calculated using US$1,100 per ounce for palladium, US$950 per ounce for platinum, US$1,300 per ounce for gold, US$6,614 per tonne for copper, and US$15,4332 per tonne for nickel. This calculation is consistent with the calculation in the Company’s September 2019 NI 43-101 Kaukua resource estimate. Additionally, US$1,100 per ounce for palladium is consistent with the UBS January 2021 long-term consensus price forecast even though the current price of palladium is approximately US$3,000 per ounce.
**Spot Palladium and Gold Equivalent
Spot palladium and gold equivalents are calculated using recent spot prices for comparison purposes using US$2,700 per ounce for palladium, US$1,200 per ounce for platinum, US$1,900 per ounce for gold, US$10,141 per tonne for copper, and US$17,857 per tonne for nickel