BULL:CSE - An opportunity?


Canadian Palladium Resources Inc. (BULL:CSE) is an independent mineral exploration company which is currently pursuing Copper-Cobalt and Palladium exploration on their respective properties in Europe and North America.


The East Bull project is a fully permitted Palladium project located 90km West of Sudbury Ontario.

The Tisova Copper-Cobalt project is located on the Czech Republic and Germany border.


Below is a list of BULL:CSE activities in the last 18 months.


News Releases


2019

Feb. 26 - Closes Transaction to acquire 43-101 Inferred Palladium Resource. The NI 43-101 Report references a pit-constrained inferred resource of 11.1 million tonnes of 1.46 grams per tonne (523,000 ounces) palladium equivalent.


The Property consists of approximately 1000 hectares covering more than 3.6 kilometres of the East Bull layered intrusion. This area consists of an inclusion bearing zone hosting palladium mineralization.


The 43-101 Report recommends an exploration program to extend and define the known mineralization. The Company has not undertaken any independent detailed investigation of the information contained in NI 43-101 Report in order to verify the accuracy of the information. However, the Company believes that following the recommended exploration work program will increase the current resource and help to define the extent of the palladium mineralization.

Pursuant to the Agreement, and over a period of four years (should the Company elect to continue), the Company is obliged to incur $1,75M in exploration expenditures, issue $0.975M in cash payments, and issue an aggregate of 4.5 million common shares of 21C Metals to Pavey Ark in accordance with an outlined schedule.


Mar. 18 - Announces $2 Million Private Placement - At of $0.18 with Warrant of $0.30 for a period of 24 months following the Closing Date. The Company intends to use the net proceeds of the Offering for to commence exploration work on the company’s East Bull palladium and Tisová cobalt properties and for general working capital.


May 3 - Closes First Tranche of Oversubscribed Private Placement for $2.8 Million.


June 4 - Announces Strategic Advisors - Appointed strategic advisors Richard Sutcliffe, Ph.D., P.Geo, and Don Hoy to assist with the exploration of both its Ontario palladium and European cobalt properties.


The Company also announces that it has granted an aggregate of 2,450,000 incentive stock options to certain directors, officers and consultants of the Company, exercisable at $0.20 for a period of 5 years from the date of issue.


June 11 - Amends Warrant Terms. Originally exercisable at $0.45, the new exercise price will be $0.30.


June 25 - Starts Exploring at East Bull Palladium Property; Releases Excellent Previous Drilling Results. Reports 2.08 grams Palladium over 12 metres. Resource has been drilled to <150 metres and is open for expansion in all directions.


July 3 - Announces NI 43-101 Initial Resource Report for the East Bull Palladium Project. The Company engaged P&E Mining Consultants Inc. to complete a Technical Report and Initial Mineral Resource Estimate on East Bull property.


July 12 - Commences Exploration on Tisová Copper-Cobalt Project. The aim of the exploration is to assess the Copper – Cobalt potential in the interpreted rift system that hosts the past producer in the Czech Republic.


The Company has contracted Beak Consultants of Germany to complete a geological comprehensive data compilation and field study to evaluate the copper-cobalt anomalies defined by the German Government geological work.


July 17 - Further Expands Scale of Palladium Project. The Agnew Lake property was acquired after discussions with the Company’s advisors and review of the Ontario Government geological data base.The Agnew Lake property is comprised of over 260 claims (~6000 Ha) and is part of the larger East Bull Lake-Agnew Lake mafic-ultramafic complex.


The Company believes this acquisition will position it to be one of the larger non-producing palladium explorers in North America. The Company continues exploration methods on the East Bull property and surface grab sample results from geological structural mapping should be available in three weeks.


July 29 - Provides Canadian and European Exploration Update. East Bull: a) 20 km of line cutting completed, allowing for proper controls of upcoming diamond drilling program and potential induced polarization surveys, b) 70 grab samples, used to verify palladium mineralization, are currently in the lab and results are expected within 2 weeks, and c) Geophysical program being developed for deployment in the third quarter. Tisova; Beak Consultants GmbH commenced field work in July with a view to delineating the Tisova trend continuance on to 21C’s German concession


Sep. 17 - Examines Large Scale Palladium System. East Bull; Out of 73 Twelve (12) samples had values of >2000 ppb (2.0 grams per ton) Platinum + Palladium + Gold. Agnew Lake: Review of historical data indicated that various Palladium-Platinum showings were acquired within the staked area yielding a total of 58 samples have been submitted to the lab.


Caution: Grab samples are selected samples and not necessarily indicative or reflective of mineralization.


Oct. 15 - Commences Drilling on East Bull Palladium Project. Looking to expand on near surface 523,000 oz resource

The diamond drill program comprised of 10 to 15 holes will commence within the next week.


Nov. 20 - Provides Drilling Update. The Company has discussed timing with its contractor Vital Drilling (the “Contractor”), the Company’s Qualified Person and its technical advisor Richard Sutcliffe, and has determined that, rather than commencing the program immediately, it is preferable to wait for colder weather before deploying equipment. The Company and Contractor plan on assessing the conditions for mobilization over the next few weeks.



2020

Jan. 15 - Announces Name Change to Canadian Palladium Resources Inc.


Jan. 29 - Closed Non-Brokered Private Placement. The private placement raised gross proceeds of $4.00M through the issuance of 33,336,698 units (each, a “Unit”) at a price of $0.12 per share; Warrant 0.18 cents.


Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired 12,500,000 Units for a total consideration of $1,500,000. 12% total ownership. The Company intends to use the proceeds of the financing to advance its East Bull palladium project and for general working capital.


Jan. 30 - Signs 10,000M Diamond Drill Contract. A contract with Vital Drilling of Val Caron, Ontario for a 10,000 metre diamond drilling program on the Company’s East Bull Palladium Property.


Feb. 11 - Commence Drilling: Drilling has commenced with one rig; a second to be added once the logistics are settled.


Also granted an aggregate of 3,000,000 incentive stock options to certain directors, officers, employees and consultants. The stock options will be exercisable at $0.20 for a period of five years from the date of grant.


Mar. 2 - Announces Rush Sample Results From First Diamond Drill Hole - Hole EB-20-01 designed to assess the areas of higher – grade Palladium. a) 3.32 g/t Palladium over 7.0 metres b) 2.50 g/t Palladium over 10 metres c) 3.77 g/t combined Palladium + Platinum + Gold over 10 metres, d) Including 7.13 g/t combined Palladium + Platinum + Gold over 3 metres.


Canadian Palladium intends to analyse significant Palladium zones for rhodium.


Mar. 4 -Makes Option Payment; Provide Drilling Update: confirms it has exceeded the contractual minimum exploration expenditures on the Property, issued 750,000 common shares of the Company, and made a $150,000 cash payment.


The ongoing program is testing the full 3.0 km length, to a depth of 240 meters. The Company’s goal is to expand upon this inferred resource. To date, the Company has received sample results from the first diamond drill hole, EB-20-01


Mar. 20 -Announces Suspension of Drilling Program. Due to the COVID-19 pandemic.


Apr. 17 - Continues to Intersect Excellent Palladium Grades at East Bull. Announce the analytical sample complete results for diamond drill holes EB-20-01 to EB-20-06 and the partial results of EB-20-07. 


The company has completed 10 diamond drill holes (1841 metres) prior to shutting down with the Covid-19 pandemic. All 10 holes have been sampled and the samples have been delivered to Activation Laboratories in Ancaster, Ontario.


The diamond drill program will recommence once the risk of the Covid-19 pandemic has abated.


May 1 - Commences Magneticotelluric Geophysical Survey at East Bull. This jointly funded MT survey is an electromagnetic geophysical method with excellent depth penetration and a proven ability to detect, directly or indirectly, the type of palladium mineralization (high palladium tenor disseminated sulfide).


Interpreted results from the survey are expected within three weeks. Canadian Palladium has notified Act Labs of the samples to be analysed for Rhodium and expect results in the next 4 weeks.


May 13 - Valhalla Zone Continues to Yield Consistent Palladium Results at East Bull. The Company has completed 10 diamond drill holes (1841 metres) prior to shutting down with the COVID-19 pandemic. Further, the MT survey previously announced has been completed and is being interpreted.


Canadian Palladium has sent the significant Palladium zones for rhodium for analyse. The Company expects to recommence the diamond drill program within two weeks, pending COVID-19 pandemic effects in the Sudbury area.


May 27 - To Recommence Diamond Drilling Program May 27. The next three holes will be completed on the east end of the Inferred Mineral Resource, after which the drill will be moved westward to continue with infill and down dip holes.


June 2 - Resumes Drilling on Targets to Expand Palladium Resource at East Bull. Received preliminary interpretation data from the recently completed MT survey which is now being compiled for comparison to the airborne EM conductors. Rhodium results for the Palladium mineralized zones within holes EB-20-01 to 10 have been received and are currently being incorporated with additional precious and base metals to determine Palladium equivalent values.


Prospecting and sampling program on Agnew Lake Intrusion claims will commence in a week.



Summary


In the last 18 months, Canadian Palladium Resources (BULL:CSE) has made some significant achievements.


Financing

In March 2019. BULL:CSE announced the intent to raise $2M at $0.18 with Warrant of $0.30 for a period of 24 months. Not but two months later, the company reported that the First tranche was oversubscribed for $2.8M!


In January 2020, BULL:CSE Closed a $4M placement 33,336,698 units at a price of $0.12 per share; Warrant 0.18 cents. Indeed, Eric Sprott via 2176423 Ontario Ltd.contributed $1.5M for a 12% stakes in total ownership.


Hence, in less than one year, BULL:CSE raised more than $6M to fund its exploration.



Options

In the period reviewed, BULL:CSE issued two releases regarding incentive stock options. In June 2019 - 2.4M incentive stock options were granted at $0.20 cents. In February 2020 - 3M incentive stock options at 0.20 cents.

Hence, there are about 5M incentive options are $0.20 cents.



Payment Options

Upon acquiring East Bull in January 2019, the terms set forth by the agreement were: over a period of four years (should the Company elect to continue), the Company is obliged to incur $1,75M in exploration expenditures, issue $0.975M in cash payments, and issue an aggregate of 4.5 million common shares in accordance with an outlined schedule. In March 2020, BULL:CSE disclosed that it exceeded the contractual minimum exploration expenditures on the Property, as well as, issued 750,000 common shares of the Company, and made a $150,000 cash payment.



Tisova

In July 2019, BULL:CSE began exploration of the property and hired a company to complete a comprehensive geological data compilation and field study to evaluate the copper-cobalt anomalies. No other details have been provided since.


East Bull

In June 2019, BULL:CSE initiated exploration with an emphasis on line cutting and detailed mapping laying a base for diamond drilling towards the objective to increase the resource. Previous historical results of 2.08 grams of Palladium over 12 metres were disclosed. In July 2019, the company announced NI 43-101 initial resource report. As depicted below, 11.1 million tonnes of 1.46 grams per tonne (523,000 ounces) palladium equivalent were reported.


Also in July 2019, BULL:CSE acquired Agnew Lake Property comprised of over 260 claims (~6000 Ha) which is part of the larger East Bull Lake-Agnew Lake mafic-ultramafic complex.


Also in July 2019, an update was provided on East Bull in which 20 km of line cutting was completed,+70 grab samples were obtain and used to verify palladium mineralization and that a Geophysical program was currently underway.


In Sept 2019, BULL:CSE reported that Out of 73, 12 samples had values of >2000 ppb (2.0 grams per ton) Platinum + Palladium + Gold. BULL:CSE also indicated that 58 samples from Agnew Lake have been submitted to the lab.


In October 2019, the company began drilling a program of 10-15 holes but decided to suspend the program in late November 2019 but re-initiated activities in February 2020. In March 2020, rush sample results were provided. Results were quite encouraging: a) 3.32 g/t Palladium over 7.0 metres, b) 2.50 g/t Palladium over 10 metres, c) 3.77 g/t combined Palladium + Platinum + Gold over 10 metres, d) Including 7.13 g/t combined Palladium + Platinum + Gold over 3 metres.

However, in late March the drilling activities were suspended again due to Covid-19.


In April 2020, BULL:CSE reported completion of analytical sample results. The company also confirmed that it completed 10 diamond drill holes (1841 metres) prior to shutting down due to the Covid-19 pandemic.

All 10 holes were sampled and have been delivered to Activation Laboratories in Ancaster, Ontario.


On May 1, 2020. BULL:CSE initiated the Magneticotelluric Geophysical Survey to detect palladium mineralization. Interpreted results from the survey were expected within three weeks. BULL:CSE also disclosed that the samples sent to Act Lab were also going to be analysed for Rhodium and that the company was expecting results in the next 4 weeks.


On May 13, 2020, BULL:CSE reported that the MT survey previously announced has been completed (less than two weeks) and is being interpreted. On May 27, 2017, the company resumed drilling activities as the Covid-19 restriction were lifted and confirmed that its working on the next three drill holes.


Most recently on June 2, 2020, BULL:CSE announced that it received preliminary interpretation data from the recently completed MT survey which is being compiled for comparison to the airborne EM conductors. The company also confirms that the Rhodium results for the Palladium mineralized zones within holes EB-20-01 to 10 have been received and are being incorporated with additional precious and base metals to determine Palladium equivalent values. BULL:CSE also indicated that prospecting and sampling program on Agnew Lake Intrusion claims to begin in a week.


In Short

In the last 18 months, BULL:CSE raised $6.8M and issued warrant outstanding at $0.18 cents and $0.30 cents. As per last MD&A for (May 29, 2020), it reported a cash position of $2,480,573 (March 31, 2019) and reported that the last financing: "provide sufficient working capital to commence work on its exploration and evaluation projects for the next 12 months".


Also in the last 18 months, BULL:CSE valuation fluctuated between $0.265 cents and $0.05 cents. While it appeared to be subject to a year end tax sell off in December 2019, the stock bounced back significantly from a 52 week low to around $0.18 cents until late February 2020 right around the timing of the March 2 releases and the Covid-19 crisis. Since then valuation has been trending down despite seven releases indicating progress on exploration.


As a reminder, BULL:CSE has resumed its activities, and is in the process of compiling results of its most recently completed drill targets, and intends to imminently release information regarding Palladium equivalent values and Rhodium content at East Bull (per June 2, 2020 release). If anything, it indicates that the company has been working expeditiously on its goal of expanding inferred resource. Interested? Consider a review of the investor presentation.


With valuation testing S1 at $0.075 cents and S2 ($0.070) this week, does BULL:CSE represent an opportunity?


DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The content of rally is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions - rally cannot take responsibility for your investment decisions.

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