Palladium One Acquires the Canalask Nickel- Copper-PGE Project, Yukon, Canada
Palladium One Acquires the Canalask Nickel-
Copper-PGE Project, Yukon, Canada
HIGHLIGHTS
Numerous high-grade showings
Strong potential for massive nickel sulphide mineralization
Hosts both magmatic Norilsk "feeder type" mineralization and epigenic "footwall-type"
deposit
Drill ready targets
Historic Mineral Resource Estimate, 400,000 tonnes at 1.35% nickel
Excellent access from adjoining Alaska Highway
Proximal to multiple communities
Toronto, Ontario--(Newsfile Corp. - June 13, 2022) -
Palladium One Mining Inc.
(
TSXV: PDM
)
(
OTCQB: NKORF
) (
FSE: 7N11
) (the "
Company
" or "
Palladium One
") is pleased to announce the
acquisition of the Canalask Nickel-Copper-PGE Project, located beside the Alaska Highway in Yukon,
Canada (the "
Canalask Property
"), from Victoria Gold Corporation (the "
Vendor
").
Palladium One's geological team, which is comprised of functional experts in sulphide nickel-copper-
PGE deposits, has recognized another over-looked, under explored prospect. With a historical resource
estimate dating back to 1968, a top nickel producer, Falconbridge Ltd., initiated exploration activities at
Canalask in 2006, however, Xstrata plc's acquisition of Falconbridge in late 2006 curtailed exploration
and the project has had limited exploration since then.
The vendor, Victoria Gold, held the project since
2009 and focused its efforts on successfully bringing its Eagle Gold mine into production.
The known occurrences at Canalask are hosted in the White River mafic-ultramafic complex, which hosts
other nickel-PGE deposits including the past-producing Wellgreen mine. The prospective horizon
extends for more than 10 kms on the newly acquired property.
"The Palladium One team recognizes that the area explored represents a small portion of what is clearly
an extensive and highly prospective system capable of hosting a major deposit.
Canalask complements
the massive sulphide Tyko Project in Ontario, where exploration drilling is currently underway. With $14
million of cash on hand as at March 31, 2022, the Company remains well-funded to add value to its
projects," commented Derrick Weyrauch, President and CEO.
Transaction Details
The Canalask Property was acquired through a wholly-owned subsidiary of the Company and structured
as an asset acquisition with consideration as follows:
1
.
$25,000 shall be payable in cash on Closing.
2
.
$200,000 shall be payable in common shares of the Company on Closing.
3
.
The Vendor shall retain a 2% Net Smelter Return ("NSR") royalty, with the Company retaining a
50% buyback right.
4
.
Contingent consideration includes:
a
.
$2,000,000 will be paid to the Vendor upon the earlier of (A) the publication of a Feasibility
Study, or (B) the Commencement of Commercial Production; and
b
.
$5,000,000 will be paid to the Vendor upon the commencement of commercial production on
the Canalask Property.
Completion of the transaction is subject to TSX Venture Exchange approval.
Canalask Property
The Canalask Property is located within the Whitehorse Mining District, approximately 300 kilometers
northwest of Whitehorse, Yukon and is accessible from the Alaska Highway near Beaver Creek. The
Canalask Property consists of a contiguous block of 179 quartz claims covering an approximate area of
3,400 hectares.
Exploration on the project dates to the 1950's when the Canalask footwall zone was originally
discovered, drilled and partially developed. A Historical resource estimate on the Main Zone is quoted at
400,000 tonnes at 1.35% Nickel by Discovery Mines Ltd. in 1968 (
Yukon Assessment Report 094599
).
Early Metallurgical floatation test work returned concentrate grades as high as 19.7% Nickel (
Yukon
Assessment Report 093256
). Exploration continued on the project up to the early 2000's through a
series of surface programs including geochemical surveys, geological mapping and geophysics. During
these campaigns numerous high-grade Ni-Cu-PGE showings, such 4.7% Nickel, 0.6% Cu and 6.82 g/t
PGE in grade samples at the Discovery zone (
Yukon Assessment Report 094599
), were discovered
along the length of the ultramafic-mafic body. In 2006 Xstrata completed a NI-43-101 Technical Report
(
Yukon Assessment Report 094599
) on the project. Readers are cautioned that the Company has not
verified the Historical Mineral Resource Estimate and therefore the data should not be relied upon.
Geology Overview
The Canalask Property covers the lateral extent of the northwest - southeast striking, steeply dipping
"White River Intrusive Complex" (WRIC), which is part of the larger Kluane Mafic-Ultramafic Belt. The
Kluane belt extends from northern British Columbia to east-central Alaska, within the Pennsylvanian to
Triassic Wrangellia Terrane volcanics and sediments. The belt is host to numerous nickel-copper +/-
platinum-palladium deposits and prospects, most notably the past producing Wellgreen Deposit, now
held by Nickel Creek Platinum Corp., approximately 110 kilometers to the south. The WRIC occurs as a
sill-like body of ultramafic and mafic rocks 100 to 150 meters thick and dipping approximately 50
degrees to the southwest. The northern margin of the WRIC represents the basal footwall contact zone
while the southern margin delineates the upper hanging wall intrusive contact. The intrusion itself is
dominantly composed of peridotite and dunite with a mineralized basal gabbro zone.
The WRIC is a favourable setting for magmatic nickel-copper sulphide mineralization as it is considered
a "feeder system" with a high volume of magma flow. As evidenced by the abundance of magmatic Ni-
Cu-PGE showings at the base of the WRIC and the discovery of the Ni-rich Canalask footwall deposit,
the project hosts strong potential for both "magmatic feeder-type" basal deposits and "epigenetic
footwall-type" footwall deposits. The geological setting draws comparison to the world-class Norilsk Ni-
Cu-PGE camp.
To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/6502/127402_315ff2df949508fc_001full.jpg
Note:
The Company has not attempted to verify the historic mineral resource estimate and therefore readers
should not place any reliance on the historical estimate.
Qualified Person
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 a Qualified Person as defined by
National Instrument 43-101.
About Palladium One
Palladium One Mining Inc. (TSXV: PDM) is focused on discovering environmentally and socially
conscious
Metals for Green Transportation
. A Canadian mineral exploration and development
company, Palladium One is targeting district scale, platinum-group-element (PGE)-copper-nickel
deposits in leading mining jurisdictions. Its flagship project is the Läntinen Koillismaa (LK) Project in
north-central Finland, which is ranked by the Fraser Institute as one of the world's top countries for
mineral exploration and development. LK is a PGE-copper-nickel project that has existing Mineral
Resources. PDM's second project is the 2020 Discovery of the Year Award winning Tyko Project, a
high-grade sulphide, copper-nickel project located in Canada. Follow Palladium One on
,
, and at
www.palladiumoneinc.com
.
ON BEHALF OF THE BOARD
"Derrick Weyrauch"
President & CEO, Director
For further information contact:
Derrick Weyrauch, President & CEO
Email:
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
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that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar
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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.
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