Palladium One Drilling Update - LK PGE-Ni-Cu Project in Finland
February 18, 2020 – Vancouver, British Columbia – Palladium One Mining Inc. (TSX-V: PDM, FRA: 7N11, OTC: NKORF) (the "Company" or “Palladium One”) has retained a local diamond drilling contractor, Northdrill Oy, from Rovaniemi, Finland, to conduct a winter drill program at the palladium dominant, Lantinen Koillismaa (“LK”) PGE-nickel-copper project. Crews are scheduled to mobilize on or about February 24th and begin drilling immediately thereafter.
“Our primary goal for the current drill program is to upgrade and convert the historical resource estimate at Haukiaho, to a current NI43-101 resource estimate. Adding palladium ounces to our existing palladium resource endowment, at a time when persistent unreconcilable supply deficits exist is needed to help ensure security of supply.
Analysts1 report that in 2019, the palladium supply deficit reached 1,200,000 ounces while automotive demand reached an all-time high of 9,700,000 ounces and total mine supply was only 6,900,000 ounces. Despite lower vehicle production in 2019, the intensifying use of palladium in gas-powered cars in Europe and China has propelled demand to a record level. As an increasing number of vehicles produced meet the China 6 and Euro 6D legislative standards, the 8-year palladium deficit appears likely to continue and increase in 2020,” commented Derrick Weyrauch, President and CEO.
On February 13, 2020, the Finish Mining Authority approved three Enforcement Decisions (see news release February 13, 2020) which allow the Company to carry out all planned exploration activities, including drilling, irrespective of any appeals process. The three approvals are in respect of Kaukua zones of the LK project.
The planned drill program consists of up to 5,000m of diamond drilling and is to start at the Kaukau deposit and then move to the Haukiako zone, where a historic resource estimate exists. (see new release January 9, 2019). In 2011 Haukiaho was drilled at very wide spacing, the Company plans to infill and expand this drilling. Haukiaho represents the main focus of the current program and drilling will target higher grade zones delineated by the current IP survey program.
Haukiaho is known to host higher grades pods, with elevated copper and nickel values, historic drill intercepts include 0.97g/t PGE over 61.0 meters (0.56g/t Pd, 0.22g/t Pt, 0.20g/t Au, 0.32% Cu, 0.23% Ni in HAU12-018).
The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo, Vice President of Exploration and a director of the Company and the Qualified Person as defined by National Instrument 43-101.
About Palladium One
Palladium One Mining Inc. is a palladium dominant, PGE, nickel, copper exploration and development company. Its assets consist of the Lantinen Koillismaa (“LK”) PGE-Cu-Ni project, located in north-central Finland and the Tyko Ni-Cu-PGE property, near Marathon, Ontario, Canada.
The Kaukua deposit of the LK project hosts 635,600 Pd_Eq ounces of Indicated Resources grading 1.80 g/t Pd_Eq* (“palladium equivalent”) contained in 11 million tonnes (@ 0.81g/t Pd, 0.27g/t Pt, 0.09g/t Au, (1.17g/t PGE), 0.15% Cu & 0.09% Ni), and 525,800 Pd_Eq ounces of Inferred Resources grading 1.50 g/t Pd_Eq contained in 11 million tonnes (@ 0.64g/t Pd, 0.20g/t Pt, 0.08g/t Au (0.92g/t PGE), 0.13% Cu, & 0.08% Ni), (see press release September 9, 2019). Kaukua is open for expansion, while the Kaukua South, Murtolampi and Haukiaho mineralized zones require systematic exploration via diamond drilling to follow up mineralized drill intercepts.
*Pd_Eq is calculated using the following metal prices (in USD) of $1,100/oz for Pd, $950/oz for Pt, $1,300/oz for Au, $6,614/t for Cu and $15,432/t for Ni.
1 Johnson Matthey, February 2020, PGM Market Report
ON BEHALF OF THE BOARD
President & CEO, Director
For further information contact:
Derrick Weyrauch, President & CEO
Neither the TSX Venture Exchange nor its Market Regulator (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release is not an offer or a solicitation of an offer of securities for sale in the United States of America. The common shares of Palladium One Mining Inc. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
Information set forth in this press release may contain forward-looking statements. Forward-looking statements are statements that relate to future, not past events. In this context, forward-looking statements often address a company's expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in palladium and other commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to Canadian and U.S. Shareholders. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.