BULL:CSE - Puzzling.


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.


Coverage was initiated July 2020 with an update on February 2021.


News Releases


Mar. 1 - Makes Option Payment on East Bull Palladium Project: Pursuant to the Option Agreement entered into with Pavey Ark Minerals Inc. (see February 26, 2019 press release) to acquire a 100% interest in the East Bull palladium property, the Company confirms it has exceeded the contractual minimum exploration expenditures. As such, issued 1M common shares of the Company, and made the first tranche of the next cash payment to Pavey Ark Minerals Inc.

Pursuant to the Agreement, and over a period of four years (should the Company elect to continue), the Company is obliged to incur $1,750,000 in exploration expenditures, issue $1,000,000 in cash payments, and issue an aggregate of 4.5 million common shares of Canadian Palladium to Pavey Ark Minerals.


Mar. 10 - Drill Program Bridges Valhalla and Garden Zones of Palladium Mineralization at East Bull Deposit: Provide assay results for five diamond drill holes EB-20-43 to EB-20-47 at the East Bull Palladium Deposit.


A highlight from the current results is Hole EB-20-43 that intersected two mineralized intervals with 1.71 grams of Palladium equivalent (PdEq) over 7.0 metres and 1.44 grams PdEq over 10.0 metres at the west end of the Valhalla Zone. Holes EB-20-46 and -47 extended the Garden Zone east from previously drilled mineralization with 9.0 m of 1.16 g/t PdEq and 7.0 m of 1.30 g/t PdEq respectively.


Mar. 30 - Defines 2.9 Km Mineralized Strike Length; Releases 9.7 g/t over 2 Metres PdEq Drill Result: Provide assay results for drill holes EB-20-48 to EB-21-50 at the East Bull Palladium Deposit.

A highlight from the current results is hole EB-21-50 that intersected two mineralized intervals with 9.709 grams/tonne Palladium-equivalent ( g/t PdEq) over 2.0 metres and 1.055 g/t PdEq over 24.0 metres in the Garden Zone.


May 5 - Extends Garden Zone on Strike with 2.38 g/t Palladium Equivalent Over 6 meters and Intersects New Zone of Palladium Mineralization Interpreted as a Feeder Dyke: Assay results for drill holes EB-21-51, EB-21-52, and EB-21-53. These drill holes extend the main Garden/Valhalla Zone palladium mineralization 250 m along strike to the west.


Hole EB-21-52 intersected both the Garden Zone and a new mineralized inclusion-bearing gabbro that assayed 1.41 g/t Pd Eq over 7 m from 223.0 to 230.0 m, however, the hole terminated in mineralized gabbro. The Company plans to extend this hole to determine the full extent of the new zone that is interpreted as a feeder dyke: Hole EB-21-53 intersected 2.38 g/t Pd Eq over 6.0 m from 173.0 to 179.0 m. This interval is in the Garden Zone where mineralization is hosted in vari-textured gabbro that has shown consistent mineralization for over 2.5 km strike length.


May 12 - Intersects 22 Metres Grading 2.22 g/t Palladium Equivalent Including 7 Metres at 3.40 g/t Pd-Eq: Report assay results for drill holes EB-21-54 to EB-21-56 that further extend the East Bull Palladium Deposit along strike to the west.


A highlight of the current batch of drill results is hole EB-21-55 that intersected 22 metres grading 2.22 g/t palladium-equivalent. This intersection included a higher grade 7 metre interval with 3.40 g/t palladium-equivalent and is the best intersect drilled to date in the Garden Zone.


June 7 - Diamond Drilling at East Bull Property to Expand Mineralization and Test Feeder Dyke Extent: The drilling in this area will deepen hole EB-21-52, found to contain 2.38 g/t PdEq over 6 metres at the bottom of the hole and stopped in mineralization (see May 5, 2021 press release). The extension of this hole is significant as the mineralization at the base of the hole is a new zone hosted in an interpreted feeder dyke located 50 m below the main zone.


The current phase of diamond drilling is scheduled to be completed in 28 days. It is expected that 6 holes totalling another 2,000 metres will be completed in this area and if successful is anticipated that mineralization could potentially be expanded for another 200 - 300 metres west and 200 metres down dip from existing drill intersections.


Aug. 17 - Intersects New "EOH Zone"; 20 Metres of 1.4 g/t PdEq, Extends Garden Zone; 38 Metres of 1.3 g/t PdEq


Highlights: holes EB-21-65 to 69 and an extension of hole EB-21-52 include: 1) Hole EB-21-52 was extended from 230 m to 284 m to test mineralization in the newly discovered EOH Zone. The extension resulted in a 20 m intersection of the EOH Zone grading 1.39 g/t PdEq. 2) Hole EB-21-67 had a wide 38.0 m intersection grading 1.31 g/t PdEq including 6.0 m at 2.0 g/t PdEq in the main Garden Zone; 3) Hole EB-21-68 had multiple intersections with 5 metres of 0.99 g/tPdEq and 13 metres of 0.93 g/t PdEq in the Garden Zone, plus 4 metres of 1.62 g/t PdEq in the EOH Zone.


The Company also announces that it has issued 125,000 common shares as a finder's fee for the acquisitions of Tisova Pty Ltd. and TGER Pty Ltd, pursuant to the amended share purchase agreements as announced on February 2, 2021.


Sep. 22 - Intersects 19 Metres Grading 1.77 g/t PdEq in Garden Zone and Continues to Extend New "EOH" Zone with 15 Metres Grading 1.36 g/t PdEq at East Bull Palladium Deposit: Highlights from holes EB-21-70 to 72 include: Hole EB-21-71 had a wide 15.0 m intersection grading 1.36 g/t PdEq including 6.0 m at 2.13 g/t PdEq in the new EOH Zone; Hole EB-21-72 had a wide 19.0 m intersection grading 1.77 g/t PdEq including 14 m at 2.08 g/t PdEq in the main Garden Zone.


Sep. 24 - Closes Flow-Through Private Placement: A non-brokered private placement raising aggregate gross proceeds of $715,000 through 6,217,389 flow-through units at a price of $0.115 per Unit. Each FT Unit consists of one flow-through common share of the Company and one-half of one non-flow-through share warrant ($0.17 cents).


Summary


East Bull

The company has been working on expanding the resources from the initial NI 43-101 resource (July 2019) for which 11.1 million tonnes of 1.46 grams per tonne (523,000 ounces) palladium equivalent were reported.

Pd-Eq grade based on parameters in (May 2019), Metal prices are based on 24-month trailing averages at January 31, 2018. Pd – $767/oz; Pt – $973/oz; Rh – $1,000/oz; Au – $1.262/oz; Cu – $2.53/lb; Ni – $4.62/lb; Co – $20/lb (all in USD).

To this effect, an extensive drill campaign (>20 holes) was conducted in order to expand the above mineral resources.

March 2021 drill holes EB-20-43 to EB-20-47 (5 holes) were reported.


EB-20-43 that intersected two mineralized intervals with 1.71 grams of Palladium equivalent (PdEq) over 7.0 metres and 1.44 grams PdEq over 10.0 metres at the west end of the Valhalla Zone. Holes EB-20-46 and -47 extended the Garden Zone east from previously drilled mineralization with 9.0 m of 1.16 g/t PdEq and 7.0 m of 1.30 g/t PdEq respectively.


March 2021 drill holes EB-20-48 to EB-21-50 (3 holes) were also reported.


EB-21-50 that intersected two mineralized intervals with 9.709 grams/tonne Palladium-equivalent ( g/t PdEq) over 2.0 metres and 1.055 g/t PdEq over 24.0 metres in the Garden Zone.


May 2021 drill holes EB-21-51, EB-21-52, and EB-21-53 (3 holes) were reported.


EB-21-53 intersected 2.38 g/t Pd Eq over 6.0 m from 173.0 to 179.0 m.


May 2021 drill holes EB-21-54 to EB-21-56 (3 holes) were reported:


EB-21-55 that intersected 22 metres grading 2.22 g/t palladium-equivalent. This intersection included a higher grade 7 metre interval with 3.40 g/t palladium-equivalent and is the best intersect drilled to date in the Garden Zone.


Aug 2021 drill holes EB-21-65 to 69 and EB-21-52 EXT (6 holes) were reported:


i) EB-21-52 was extended resulting in a 20 m intersection of the EOH Zone grading 1.39 g/t PdEq. ii) Hole EB-21-67 had a wide 38.0 m intersection grading 1.31 g/t PdEq including 6.0 m at 2.0 g/t PdEq in the main Garden Zone; iii) Hole EB-21-68 had multiple intersections with 5 metres of 0.99 g/tPdEq and 13 metres of 0.93 g/t PdEq in the Garden Zone, plus 4 metres of 1.62 g/t PdEq in the EOH Zone.


September 2021 drill holes EB-21-70 to 72 (3 holes) were reported:


EB-21-71 had a wide 15.0 m intersection grading 1.36 g/t PdEq including 6.0 m at 2.13 g/t PdEq in the new EOH Zone; EB-21-72 had a wide 19.0 m intersection grading 1.77 g/t PdEq including 14 m at 2.08 g/t PdEq in the main Garden Zone.


Financing

August 2021, BULL;CSEs issued 125,000 common shares as a finder's fee for the acquisitions of Tisova Pty Ltd. and TGER Pty Ltd, pursuant to the amended share purchase agreements as announced on February 2, 2021.


Last month, the completion of a flow through private placement was announced. A total of $715,000 was raised via the issuance of 6,217,389 flow-through units at $0.115 per Unit (Warrant at $0.17 cents).


In short

Thus far, drill results reported for 2021 do not seems as impressive as the 2020 campaign. In 2020, 35 drill holes of which 18 (48%) had results above the NI 43-101 initial resource report estimate (1.46 PdEq (g/t)). This year, only 6 (26%) out of the 23 drill holes were above that threshold. Furthermore, if one looks at Pd (g/t) alone, the previous NI 43-101 initial resource estimate had a (0.58 Pd (gt) classification. In 2021, 8 (35%) out of the 23 holes were above this value.


Why is that? Part of the reason is attributed to the fact that BULL:CSE was drilling in new zones and at deeper depth.

However, the above threshold grade (1.46 PdEq (g/t)) encountered in 2021 were very strong throughout the campaign .









Averaging the holes reported in 2021 yield s1.77 PdEq (g/t)). This is by no means indicative of any definitive value of the upcoming updated resource but possibly a proxy in situating relevance and performance of the drill results. Meaning that despite having less holes above threshold than 2020, in relative terms the results may not be necessarily weaker.


The consistency of the Garden Zone mineralization has been outstanding and it contains some great higher-grade intersections. With the discovery of the EOH Zone below the Garden Zone we are intersecting multiple mineralized zones in some of our drill holes. We look forward to including these results in our updated Resource Estimate in Q4.”

-Canadian Palladium’s CEO


Also note that the 2021 drill results to date did not report Rhodium value. Since Rhodium is considered an important factor in the PdEq calculation, this can impact the mineral estimate, and the economic potential of East Bull .


The Company's protocol is to analyze Rh after initially assaying for palladium, platinum and gold. Once Rh results are received, the Rh concentrations will be reported and Rh will be included as a component of 3PGM (palladium+platinum+rhodium) and included in calculations of palladium equivalent (PdEq). At current prices Rh will be the second most important contributor to PdEq at East Bull after Pd itself.


Red Cloud Securities put out an exploration update in late March in the piece it stated:


Management aims to increase the resource estimate by 4x to +2M oz Pd Eq. (+40Mt) in the in the long term. Its our expectation that a pending resource estimate might increase in size to ~20Mt at slightly higher grades, proving between 1.3–1.4M oz Pd Eq. in the interim (due Q2/21). by drilling the deposit at depth (200m to 240m).


This will certainly be helpful to contextualize the outcome of the pending resource estimate (now due Q4/2021).


Palladium prices have been on the rise in the last five years but have declined significantly in the last six months.

The NI 43-101 Resource Estimate and Technical Report base case is Pd – $767/oz. Today, Pd traded above $2000/oz.

Today BULL:CSE closed $0.07 cents revisiting a 52 weeks low. Puzzling!

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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