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. Below is an update.
News Releases
July 23 - Receives Magnetotelluric (MT) Survey Results and Identifies New Drill Targets: Results identify two new, shallow drill targets adjacent to the Valhalla Deposit palladium resource. Drill Targets - Prospective targets are defined by resistivity lows. Targets at depths of less than 500 m are amenable to drill testing in the current program.
"Canadian Palladium is currently drilling at East Bull. We plan to test these new, high-quality MT drill targets that have the potential to significantly expand the palladium resource on this project. The new targets are relatively shallow with depths of less than 500 m and we will have an opportunity to test them during the current drill program. We look forward to some exciting results from this drilling." - Mr. Wayne Tisdale, CEO.
July 28 - Completes Sale of Turner Lake Project: located in Nunavut, Canada, pursuant to a mineral purchase agreement entered into with Pacific Cascade Minerals Inc. ("PCV"), as previously announced on September 13, 2018.
Terms
PCV agreed to purchase a 100% right title and interest in the property in exchange for 1 million common shares of PCV which were delivered to the Company after PCV received TSX Venture Exchange approval for the transaction. The Company was also reimbursed $46,720 by PCV representing prior cash expenditures incurred on the Property. Upon commencement of commercial production, PCV shall pay a royalty to the Company equal to 1% of net smelter returns which may be purchased for the sum of $1,000,000 at any time after commercial production.
Aug. 18 - Reports Complete Assay Results for First Ten Drill Hole: Intersects High-Grade Palladium Including 4.0 Metres with 8.15 G/T Palladium Equivalent.
The results include several high-grade palladium intersections with significant platinum (Pt), rhodium (Rh), gold (Au), and copper (Cu) with associated nickel (Ni) and cobalt (Co). Other results include: EB20-03 with 3.0 m at 6.29 g/t Pd-Eq; and EB20-07 with 3.0 m at 7.47 Pd-Eq. These high-grade intervals are part of wider intervals of mineralization that include: 15.0 m at 2.69 g/t Pd-Eq in hole EB20-03; and 24.0 m at 2.14 g/t Pd-Eq in hole EB20-07.
Aug. 26 - Reports Preliminary Assay Results for Additional Drill Holes Wide Intersections of Palladium Mineralization Including 22.0 M at 2.24 g/t Pd-equivalent.
Preliminary assay results for diamond drill holes EB20-11 through EB20-20: 1)EB20-12 with 22.0 m at 2.24 g/t Palladium Equivalent (PdEq);, 2) EB20-17 with 23.0 m at 1.54 g/t Pd-Eq; and 3)EB20-20 with 32.0 m at 1.43 Pd-Eq.
Sept. 9 - Announces $3 Million Private Placement: Up to 8,333,400 Units will be offered at an offering price of $0.12 per Unit (Warrant 0.18 cents); up to 14,814,900 FT Shares will be offered at an offering price of $0.135 per FT Share.
The Company intends to use the net proceeds of the Offering to advance the exploration program on the Company’s East Bull palladium property, and for working capital and general corporate purposes.
EB20-22 with 71.0 m at 1.10 g/t Palladium Equivalent (Pd-Eq); EB20-21 with 66.0 m at 1.07 g/t Pd-Eq; EB20-23 with 55.0 m at 0.97 Pd-Eq; and EB20-24 with 11 m at 1.92 Pd-Eq.
These intervals are preliminary results that do not include rhodium (Rh), a contributor to the Palladium-equivalent (Pd-Eq) grade at East Bull. Results will be updated when additional results have been received.
Oct. 7 - Closes $3.39 Million Private Placement: The Company issued a total of 13,878,000 FT Shares at a price of $0.135 per FT Share and a total 12,647,000 Units at a price of $0.12 per Unit, which included the exercise by Eight Capital of an over-allotment option for the issuance of an additional 4,313,600 Units at a price of $0.12 per Unit.
Oct. 8 - Continues Its East Bull Diamond Drilling Program: Recommencement of the previously announced 10,000 metre diamond drill program , located in the Sudbury mining district, Ontario.
The program will continue to assess the Valhalla and Garden zones with the objective of expanding the NI 43-101 defined resource (see press release dated September 29, 2020). To date, over 7,000 metres in 33 holes were completed. Additional assay results will be released as received. The diamond drill program, which started in February 2020, is being completed in four phases. Each phase is approximately four weeks long, with a break of two weeks between phases.
Oct. 21 - Drilling Continues to Extend near Surface Deposit to over 1.6km of Strike Length: Also pleased to provide an update on the analytical results for diamond drill holes EB-20-01 to EB-20-24 on the East Bull Palladium Property.
Highlights
a. 12 holes have intersected contact-type mineralization with widths of 10 m or greater with over 1.0 g/t Pd-Eq;
b. 2 holes (EB20-21 and -22) intersected 65 and 71 m, respectively, of greater than 1.0 g/t Pd-Eq;
c. 4 holes have intersected high-grade layered mineralization with widths of 2 m or greater with over 6.0 g/t Pd-Eq.
Rhodium results are reported for holes EB20-01 to -17 with results pending on the remaining intersections. Rhodium concentrations up to 0.083 g/t over 6 m were intersected in EB20-01. At current prices of US$10,800/oz, Rhodium is a potentially significant contributor to the contained precious metal value of the East Bull Deposit.
We expect to complete our 10,000 metre diamond drill program by mid December. Once we've completed all the core analysis, we will immediately commission an updated Mineral Resource estimate.
Oct. 28 - Continues to Extend Mineralization: Pleased to provide additional analytical results for diamond drill holes EB-20-25 to EB-20-31 on the East Bull Palladium Property, 90 kilometres west of Sudbury, Ontario. All holes reported intersected mineralized zones of greater than 1.0 grams per ton Palladium Equivalent ranging from 2 to 20 metres.
"These recent East Bull results are confirming our expectations - that the Valhalla Zone's mineralization continues to the west. Our team of geologists are also looking forward to advancing their theses regarding the connectivity between the Valhalla and Garden Zones." - Wayne Tisdale, Canadian Palladium's CEO
Also announces the grant of 2,850,000 incentive stock options to certain directors, officers and consultants, subject to regulatory approval. The stock options are exercisable at $0.14 for a period of 5 years and subject to vesting provisions.
Nov. 23 - Intersects 2.97 Pd-Eq over 12.0 Metres, Expanding East Bull Mineralization West and Down-Dip: Provides additional analytical results for diamond drill holes EB-20-32, 33 and EB-20-35 to EB-20-38.
The new results include a 12.0 m section of 2.97 g/t Palladium Equivalent (Pd-Eq) (hole EB-20-37); The same hole includes a 5.0 m section of 5.59 g/t Pd-Eq; This interval also includes 1.0 m of 9.57 g/t Pd-Eq, one of the highest grade results intersected to date at the East Bull Project.
Dec. 4 - Intersects 5.1 g/t Pd-Eq over 5.0 metres, Identifies a New High-Grade Palladium Zone at East Bull Deposit Provide new analytical results for five diamond drill holes EB-20-34, and EB-20-39 to EB-20-42.
1) a 28.0 m intersection of 1.97 g/t Palladium Equivalent (Pd-Eq) in drill hole EB-20-40);
and 2) 5.0 m of 5.10 g/t Pd-Eq, also from EB-20-40.
The Company has strategically extended the drill program by an additional 2,000 metres to target the connection of the Valhalla Zone and the Garden Zone mineralization and continue testing the Palladium mineralization westward.
To date, the Valhalla Zone drilling has produced consistent results for over 1.5 kilometres strike length to vertical depths of 150 metres. The mineralization remains open at depth and on strike.
Dec. 31 - Closes $1.05 Million Flow-Through Private Placement: through 5,000,001 units non-brokered placement of the Company at a price of $0.21 per Unit (Warrant 0.30 cents).
The gross proceeds from the sale of the FT Units will be used for expenditures which qualify as "Canadian exploration expenses" ("CEE") and "flow-through mining expenditures" both within the meaning of the Income Tax Act (Canada). The Company will renounce such CEE with an effective date of no later than December 31, 2020.
Feb. 2 - Amends terms of share purchase agreement. Agreed to amend the terms of its previously entered into share purchase agreements dated July 6, 2018 pursuant to which the Company agreed to acquire both Tisová Pty Ltd. (“Tisova”) and TGER Pty Ltd. (“TGER”), located in the Czech Republic and Germany.
Under the terms of the Purchase Agreements, the Company still had the obligation to incur an aggregate $3 million in exploration expenditures on the Properties over a three year period ending July 1, 2022 and issue an aggregate of 4 million common shares of the Company to the vendors immediately upon incurring such exploration expenditures.
The Company has agreed with the Vendors that, notwithstanding the provisions of the Purchase Agreements, upon the Company immediately issuing an aggregate of 3,000,000 common shares to the Vendors, the Purchaser shall own all of the shares of Tisova and TGER (and indirectly, the Properties) unconditionally and absolutely and shall have no further obligations to the Vendors under the Purchase Agreements.
The Company and the Vendors have also agreed that one-third of the common shares being issued to the Vendors shall be restricted from being traded before August 1, 2021, another one-third of the common shares shall be restricted from being traded before November 1, 2021 and the final one-third of the common shares shall be restricted from being traded before February 1, 2022.
Summary
Canadian Palladium Resources (BULL:CSE) has been busy in the last six months.
Financing
BULL:CSE completed two financing during this period. The first, a $3.39 Million Private Placement in October 2020.
The company issued 13,878,000 FT Shares at $0.135 and 12,647,000 at $0.12 per Unit (Warrant 0.18 cents). The other, a $1.5M in late December 2020 for $1.05 Million in Flow-Through shares.(i.e. 5,000,001 units) at $0.21 (Warrant $0.30).
Hence a total of $4.8M was raised in the last six month with the intention to continue to explore the East Bull Property.
Options
In late October 2020, BULL:CSE granted 2.85M incentive stock options to directors, officers and consultants exercisable at $0.14 for a period of 5 years and subject to vesting provisions.
Tisova
July 2019, BULL:CSE began exploration and hired a company to complete a comprehensive geological data compilation and field study to evaluate the copper-cobalt anomalies.
Recently, an update was provided regarding the terms of the share purchase agreement. It appears that by issuing 3M common shares to the Vendors, BULL:CSE will own all of the shares of Tisova and TGER (and indirectly, the Properties) unconditionally and absolutely and shall have no further obligations.
This is a big deal because the initial purchase agreement required BULL:CSE to spend $3 million in exploration expenditures over three years AND issue 4M shares to the vendors. Now, BULL:CSE has convinced the vendor that 3M shares alone will be more beneficial to them than the prior arrangement that was contingent on exploration.
East Bull
On July 2019, BULL:CSE disclosed a NI 43-101 initial resource report. As depicted below, 11.1 million tonnes of 1.46 grams per tonne (523,000 ounces) palladium equivalent were reported.
Pd-Eq grade based on parameters in May 23, 2019, NI 43-101 Resource Estimate and Technical Report. Metal prices are based on 24-month trailing averages at January 31, 2018. In US$ these prices are: 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.
Fast forward to the last six months, the company has reported on more than 35 drills holes.
On October 21, BULL:CSE summarized diamond drills holes (EB-20-01 to EB-20-24) with the following highlights.
A. 12 holes have intersected contact-type mineralization with widths of 10 m or greater with over 1.0 g/t Pd-Eq;
B. 2 holes (EB20-21 and -22) intersected 65 and 71 m, respectively, of greater than 1.0 g/t Pd-Eq;
C. 4 holes have intersected high-grade layered mineralization with widths of 2 m or greater with over 6.0 g/t Pd-Eq.
October 28, another set of results (EB-20-25 to EB-20-31) were reported. Outcome: all holes intersected mineralized zones of greater than 1.0 grams per ton Palladium Equivalent ranging from 2 to 20 metres (Drill core length).
November 23, results for EB-20-32, 33 and EB-20-35 to EB-20-38 were disclosed with the following highlights.
The new results include a 12.0 m section of 2.97 g/t Palladium Equivalent (Pd-Eq) (hole EB-20-37). This hole also includes a 5.0 m section of 5.59 g/t Pd-Eq. This interval also includes 1.0 m of 9.57 g/t Pd-Eq, one of the highest grade results intersected to date at the East Bull Project.
December 4, results for EB-20-34, and EB-20-39 to EB-20-42 were provided. A 28.0 m intersection of 1.97 g/t Palladium Equivalent (Pd-Eq) in drill hole EB-20-40); and 5.0 m of 5.10 g/t Pd-Eq, also from EB-20-40.
To date all of the intercepts are shallow and within 150 m vertical depth from surface.
In Short
Palladium prices have quadrupled in the last five years. However, these have remained steady in the past six months.
The NI 43-101 Resource Estimate and Technical Report base case is Pd – $767/oz. Yesterday, Pd closed at $2250/oz.
Within the last six months, BULL:CSE reported over 35 drill holes of which 18 (48%) with results above the NI 43-101 initial resource report estimate (1.46 PdEq (g/t)). These "above threshold" results occurred continually through the 2020 campaign across the drilled targets. In fact, eight of these holes (44%) had width of greater than 10 meters.
Comparing with the rest of the base case metal prices for the earlier NI 43-101 initial resource report estimate (i.e Pt – $973/oz; Rh – $1,000/oz; Au – $1.262/oz; Cu – $2.53/lb; Ni – $4.62/lb; Co – $20/lb.), with current prices, the likelihood that a revised resource estimate will be improved is rather high.
And yet, BULL:CSE closed yesterday at $0.125 cents which is lower than at the announcement of the first drill results. In addition, the fact that Tisova's vendors recently accepted 3M share of BULL:CSE in lieu of the initial offer ($3 million in exploration expenditures over three years AND issuance of 4M shares) is telling.
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.
