Palladium One Identifies Large Chargeability Anomaly and Extends Kaukua South Zone at LK PGE-Ni-Cu Project in Finland
Palladium One Identifies Large Chargeability Anomaly
and Extends Kaukua South Zone at LK PGE-Ni-Cu Project
in Finland
Vancouver, British Columbia--(Newsfile Corp. - February 25, 2020) -
Palladium One Mining Inc.
(
TSXV: PDM) (FSE: 7N11)
(OTC Pink: NKORF
) (the "
Company
" or "
Palladium One
") reports that initial results from the first Induced Polarization (IP)
survey grid, Kaukua East, have discovered a large chargeability anomaly, representing the eastern extension of the palladium
dominant Kaukua South Zone. The Kaukua South Zone anomaly now extends over a two (2) kilometre strike length.
The Kaukua East IP survey identified a much stronger and wider chargeability anomaly than the previous 2008 IP survey
conducted at Kaukua (
Figure 1
). The 2008 IP survey was instrumental in identifying the Kaukua deposit which hosts 1.2 million
Palladium equivalent (Pd_eq) ounces and has a strike length of one (1) kilometre (
Figure 1
below and press release
September 9, 2019).
Figure 1.
Plan view of the 2008 and 2020 (current) IP survey in the Kaukua Area. The 2008 IP survey area is outlined in blue,
while the 2020 survey is outlined in green. The Kaukua deposit's optimised open pit is outlined by a dashed black line. The
newly expanded Kaukua South Zone south is outlined by a dashed red line.
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/6502/52728_5c383a0f54a218e9_001full.jpg
"It is apparent that the Kaukua mineralized system is much larger than previously understood.
The Kaukua South Zone was
thought to be cut-off to the east, whereas the 2020 IP survey clearly illustrates a highly chargeable anomaly extending for
over one (1) kilometre east of the known mineralized zone.
Significantly, the chargeability anomaly on the new Kaukua East
survey appears to be more intense and wider than the one on the 2008 survey, making it a very high priority drill target. As a
consequence of the new IP survey model, we are very optimistic that the greater Kaukua Area could have a much larger
resource endowment than previously understood,"
commented Derrick Weyrauch, President and CEO
Neil Pettigrew, Vice President Exploration, commented, "
The large, newly discovered, high chargeability, anomaly is most
intense along the western most line of the survey grid, whereas the adjoining eastern side of the 2008 IP survey indicates little
to no chargeability anomalies in this area.
With the assistance of SJ Geophysics it was revealed that several technical issues
occurred with the four most easterly lines of the 2008 survey. As a consequence, the results of the four most eastern lines of
the 2008 survey are currently being re-surveyed (
Figure 2
). The current IP survey has experience, excellent ground contact
and has resulted in the collection of very clean, high-quality data."
Figure 2.
Plan view of the 2008 and 2020 IP surveys with the IP infill "gap zone" survey outlined in red. Note that the 2008 survey
used different equipment, consisting of a three (3) line 3D system, whereas the 2020 survey used a five (5) line 3D system, as a
result the two surveys are not directly comparable.
To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/6502/52728_5c383a0f54a218e9_002full.jpg
The lack of chargeability anomalies on the four most eastern lines of the 2008 IP survey suggested mineralization was cut-off to
the east and therefore re-directed drilling by prior operators away from the area. However, several holes on the western edge of
this "gap zone" have highly anomalous Cu-Ni-PGE mineralization (e.g. hole KAU08-036,
29.3m 0.43g/t PGE
(0.26g/t Pd,
0.04g/t Pt, 0.13g/t Au), 0.26% Cu, 0.13% Ni) and these holes were never followed up further to the east (
Figure 1, 2, 3 and 4
).
The Kaukua East IP survey has provided strong evidence that Kaukua-type mineralization does indeed extend well to the east of
the known mineralized zones, and in fact, appears to be strengthening. The Kaukua South zone's eastern extension is now a top
priority drill target.
Figure 3.
Long section view, looking north, of the Kaukua deposit, Kaukua South Zone, and newly identified chargeability
anomaly.
To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/6502/52728_5c383a0f54a218e9_003full.jpg
Figure 4.
Isometric view, looking northeast of the 2008 and 2020 IP surveys.
To view an enhanced version of Figure 4, please visit:
https://orders.newsfilecorp.com/files/6502/52728_5c383a0f54a218e9_004full.jpg
The Kaukua East grid consists of approximately 14-line kms of IP, preliminary results for the western half of this survey form the
basis of this release.
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 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.
ON BEHALF OF THE BOARD
"Derrick Weyrauch"
President & CEO, Director
For further information contact:
Derrick Weyrauch, President & CEO
Email:
Phone:
1-778-327-5799
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
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be materially different from any future results, performance or achievements expressed or implied by such forward-looking
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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
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