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. and October 2021.
News Releases
Feb. 3 - Extends East Bull Palladium Deposit And Advances Metallurgical Test Work: New assay results for recently completed diamond drill holes. These holes extend on strike for approximately 250m to the east. Additionally, the Company is pleased to announce that a metallurgical test work program on the mineralization is in progress.
Drill Results
Highlights from holes EB-21-63 & 64 include: EB-21-63 had a 7.0M intersection grading 2.13 g/t PdEq and an additional 6.0M at 1.57 g/t PdEq in the Valhalla Zone; EB-21-64 had a wide 13.0M intersection grading 1.85 g/t PdEq.
Metallurgical test work program
Metallurgical test work program on the East Bull Palladium Deposit is in progress. The primary goal is to characterize the sulphide mineralogy, and evaluate potential metal recoveries and concentrate quality for the East Bull Deposit.
Two 40 kg test samples of the platinum group metal-copper-nickel mineralization from recent drill core obtained from each of the Valhalla and Garden Zones are being processed by SGS Canada Inc. of Lakefield, Ontario (SGS). SGS has completed feed characterization studies including head assays, sulphide mineralogy, Bond abrasion and ball mill tests. The flotation testing will consist of batch rougher and cleaner tests to evaluate recovery and concentrate grade expectations. The metallurgical study is well advanced. Results are expected in Q1 2022.
Feb. 17 - Intersects Highest Grades to Date at East Bull Palladium Deposit
Highlights from holes EB-21-73 to 80 include:Hole EB-21-80 had a 1.0M intersection grading 18.76 g/t PdEq in the newly recognized GAP Target, a potential feeder structure to the Valhalla Zone. The highest-grade interval assayed to date on the project; Hole EB-21-78 had a 38M intersection grading 2.19 g/t PdEq in the Garden Zone. This intersection includes 7M grading 4.09 g/t PdEq and is located immediately west of the EOH Zone feeder structure; Hole EB-21-77 intersected 39M of 1.12 g/t PdEq including 6M of 1.9 g/t PdEq in the EOH Zone and an additional 20M of 1.17 g/t PdEq.
Mar. 2 - Announces Updated Mineral Resource Estimate for East Bull Palladium Deposit with Indicated Resources of 492,100 Ounces Palladium Equivalent and Inferred Resources of 519,600 Ounces Palladium Equivalent:
The updated Mineral Resource Estimate is the culmination of a successful 20,000 metre drilling program that has substantially increased the size of the East Bull Deposit since the initial Mineral Resource Estimate was completed in 2019. The drilling program has also significantly increased the confidence level of the Mineral Resource Estimate with the majority of the Deposit now being classified as Indicated Mineral Resources.
The database compiled by P&E for this Mineral Resource Estimate consisted of 127 surface drill holes and 6 channels, totalling 24,806 metres, of which 80 holes, totalling 19,141 metres, were drilled in 2020 and 2021.
Apr. 19 - Files NI 43-101 Technical Report for East Bull Palladium Deposit:
Summary
East Bull
The most salient event of the last period is the delivery of the updated Mineral Resource Estimate (March 2022).
A total Indicated Mineral Resources of 16.5 million tonnes at a grade of 0.93 g/t PdEq for 492,100 ozs PdEq AND total Inferred Mineral Resources of 16.3 million tonnes at a grade of 0.99 g/t PdEq for 519,600 ozs PdEq.
Pd-Eq grade based on parameters in (December 2021): Currency exchange rate - C$:US$=0.80;
Pd – $1840/oz; Pt – $1180/oz; Rh – $8,000/oz; Au – $1.640/oz; Cu – $3.75/lb; Ni – $7.75/lb; Co – $24/lb (all in USD).
The updated Mineral Resource Estimate (March 2022) is a departure from initial NI 43-101 resource (July 2019);
11.1 million tonnes of 1.46 grams per tonne (523,000 ounces) PdEq.
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).
However, readers must keep in mind that: As a consequence of differences in commodity prices and cut-off grades, the current Mineral Resource Estimate including the PdEq grade is not directly comparable to the previous estimate.
As for next steps, the March 2, 2022 release recommends: further drilling (step-out, target discovery, and in-fill), mettalurgical testing, environmental studies and the completion of a Preliminary Economic Assessment (PEA).
In order to achieve these objectives, an estimated C$2.75M is needed which Canadian Palladium will need to raise.
The Company had a cash position of $73,168 and working capital deficiency of $632,313 as at March 31, 2022, compared to cash position of $597,443 and working capital of $894,584 as at September 30, 2021.
For future financing, BULL:CSE current warrant profile is favorable given its current valuation.
It has been nearly three months since the company issued its last release: Updated Mineral Resource Estimate (2022).
The March 30th interim consolidated statements filed May 30th 2022, suggests that East Bull Resources Inc. (A subsidiary of Canadian Palladium) is in negotiation with Pavey Ark Minerals Inc to amend the original cash payment.
On or Before March 1 2022, A total of $250,000 was due for which only $50,000 was paid and negotiations are ongoing.
In short
Red Cloud Securities put out an exploration update in March 2021 :
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).
The updated resource estimate delivered close to 1M oz Pd Eq.; a good interim first step. However, grade targets were not achieved in part due to the extension of the targeted zone from the initial estimates (2.2KM to 3.5KM).
Shortly after releasing the updated estimate (March 2022), Canadian Palladium presented some of the findings. A "comparison" with the initial estimates revealed that the Palladium ounce content was increased by 2.7X times in the updated estimate! Also depicted, with the additional drilling - the envisioned pit area has an excellent profile (45 Degree north incline) and overall consistent mineralization is present despite the extension of the zones.
Stated as "next step"was the "formulation of exploration plan" including "geophysics".
Otherwise, Palladium prices have been trending up in the last five years but have been declining in the last six months.
The Updated Resource Estimate base case is Pd – $1840/oz and slightly lower from the last read print of $1864/oz.
The negotiation Pavey Ark Minerals Inc., the formulation of an exploration plan, along with the current market conditions for raising funds perhaps explain Canadian Palladium's silence to date.
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