Palladium One Mining (PDM) - Technical Analysis & Due Diligence

Palladium One Mining Inc. is an exploration stage, critical minerals company with assets in Finland and North America. The Tyko project of the company holds a 243 Km2 land position in North Western Ontario and is located 25 km north of the Hemlo mining complex, with road and trail access. The mineralisation of the project consists of Ultramafic feeder-type dykes intruding Archean, sulphur-rich sediments, which feed the Bulldozer complex. The systems are saturated with sulphur and precipitating high-tenor nickel-copper sulphides, with Batholith intruding and breaking up the Bulldozer complex creating thick as well as thin ultramafic dykes.

The LK project of the company is located approximately 40 km away from the town of Taivalkoski in Finland. The project hosts 1.1 million ounces of total precious metals (TPM) which includes palladium (Pd), platinum (Pt) and gold (Au) in the indicated category, with a further 111 million pounds of copper (Cu), 92 million pounds of nickel (Ni) and 5 million pounds of cobalt (Co). The indicated mineralisation of the project totals 38.2 million tons with average grades of 0.89 g/t TPM, 0.13% Cu, 0.11% Ni and 65 g/t Co.

The CanAlask Nickel, copper and PGE project of Palladium One Mining Inc. was acquired in June 2022. The project was initially held by Falconbridge Ltd. which was able to create a NI 43-101 compliant mineral resource for the project. Falconbridge Ltd. was actively advancing the project until 2008 at which point the company was taken over. The project changed hands in the years that followed and ended up in the asset register of Victoria Gold Corp. from which it was acquired by Palladium One Mining Inc.

Palladium One Mining Inc. at the start of October 2022 released preliminary assay results from its West Pickle massive sulphide discovery at its Tyko project. The highlights of the announcement include the 3.4% nickel equivalent (NiEq) over 3.7 m including an intercept of 6.8% NiEq over 1.8 m as well as 9.4% NiEq over 0.6 m.

The company plans to complete 10,000 m to 12,000 m of exploration drilling by the end of 2022, with various assay results from its completed drilling initiatives pending. The bulk of the planned exploration drilling will focus on the West Pickle zone of the Tyko project, with Palladium One Mining Inc. conducting drilling at its Bulldozer intrusion as well as at the Smoke Lake zones. The company plans to continue with its drilling initiatives until the middle of December, with it aiming to fulfil its requirements with regard to the CAD$ 4.35 million in flow-through funds it raised in December 2021.

LK project

The Läntinen Koillismaa (LK) project of the company is a palladium, copper and nickel project located in Finland. Finland has been ranked in the top 10 best mining jurisdictions in the world by the Fraser Institute for the last few years, with the country hosting 44 active mines and a population of 5.5 million. The project also lies within the proximity of copper and nickel smelting and refining operations.

The LK project is hosted within the Paleoproterozoic, rift-related Koillismaa Layered Igneous Complex (Koillismaa Complex) of the regional Tornio-Näränkävaara intrusion belt (TNB) of north-central Finland. The Belt consists of the Näränkävaara Intrusion in the east and the Koillismaa Complex in the west. The main sulphide minerals of the project are pyrrhotite, chalcopyrite, and pentlandite with the project’s mineralisation showing similarities to the Platreef-type deposits in the Bushveld Igneous Complex of South Africa.

The project holds a mineral resource estimate (MRE), which was published in April 2022. The mineralisation of the project remains open along strike as well as at depth. The LK project hosts 1.1 million ounces of total precious metals (TPM) which includes palladium (Pd), platinum (Pt) and gold (Au) in the indicated category, with a further 111 million pounds of copper (Cu), 92 million pounds of nickel (Ni) and 5 million pounds of cobalt (Co). The indicated mineralisation of the project totals 38.2 million tons with average grades of 0.89 g/t TPM, 0.13% Cu, 0.11% Ni and 65 g/t Co.

The inferred minerals of the LK project consist of 1.1 million ounces of total precious metals (TPM), 173 million pounds of copper, 152 million pounds of nickel and 8 million pounds of Cobalt. The total mineralisation of the project is 49.7 million tons at a grade of 0.68 g/t TPM, 0.16% Cu, 0.14% Ni and 74 g/t of Cobalt.

The phase 2 metallurgical test work conducted by the company has shown that the mineralisation of the project may be recovered through a conventional flotation process with consistently reproducible recovery rates across all rock types. The test work shows that a high iron and sulphur concentrate may be obtained, with it showing no deleterious elements.

Tyko project

The Tyko project of the company holds a 243 Km2 land position in North Western Ontario. The project is located 25 km north of the Hemlo mining complex, with road and trail access. The mineralisation of the project consists of Ultramafic feeder-type dykes intruding Archean, sulphur-rich sediments, which feed the Bulldozer complex. The systems are saturated with sulphur and precipitating high-tenor nickel-copper sulphides, with Batholith intruding and breaking up the Bulldozer complex creating thick as well as thin ultramafic dykes.

The Tyko project holds two massive sulphide discoveries, which are located 20 km apart. The Smoke Lake massive sulphide mineralisation system was discovered in November 2020, with the first hole of the drill program returning massive nickel-copper sulphides at a depth of 30 m. The Smoke Lake discovery was also awarded the Bernie Schneiders Discovery of the Year Award, presented by the Northwestern Ontario Prospectors Association (NWOPA).

CanAlask project

The CanAlask Nickel, copper and PGE project of Palladium One Mining Inc. was acquired in June 2022. The project was initially held by Falconbridge Ltd. which was able to create a NI 43-101 compliant mineral resource for the project. Falconbridge Ltd. was actively advancing the project until 2008 at which point the company was taken over. The project changed hands in the years that followed and ended up in the asset register of Victoria Gold Corp. from which it was acquired by Palladium One Mining Inc.

The company acquired the CanAlask project for a total of CAD$ 25,000 payable on the closing of the agreement, CAD$ 200,000 in common shares of Palladium One Mining Inc. and the retention of a 2% net smelter return (NSR) royalty with a 50% buyback right.

The project is located beside the Alaska Highway in the Yukon and covers the lateral extent of the White River Intrusive Complex. The complex forms 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 mineralisation of the project consists of a large-scale ultramafic body, which hosts multiple high-grade Nickel-Copper-PGE showings as well as a Nickel-rich, epigenetic “footwall-type” deposit. The project also has strong potential for massive Nickel-Copper-PGE sulphide mineralization.

Tyko Exploration and assay results

Palladium One Mining Inc. on the 7th of September 2022 announced that it had discovered a new high-grade zone at its Tyko project, which hosts Massive Nickel-Copper Sulphides. The high-grade mineralisation zone, namely the West Pickle target lies approximately 20 km west of the Smoke Lake zone of the project. The Smoke Lake zone won the Bernie Schneiders Discovery of the Year Award in 2020 from the Northwestern Ontario Prospectors Association (NWOPA).

The company’s drilling initiatives encountered a 5.5 m intercept which included massive to semi-massive sulphide over 1.75 m at a depth of 185.25 to 187.00 m downhole. The company stated in the announcement that the newly identified zone resembles the Smoke Lake zone of the Tyke project. The West pickle zone is interpreted to be an extension of the historic RJ showing of the project.

The discovery has led the Tyko project to now be seen as a new Nickel District hosting five known nickel sulphide zones and various other VTEM anomalies.

Palladium One Mining Inc. at the start of October 2022 released preliminary assay results from the West Pickle massive sulphide discovery. The highlights of the announcement include the 3.4% nickel equivalent (NiEq) over 3.7 m including an intercept of 6.8% NiEq over 1.8 m as well as 9.4% NiEq over 0.6 m. The company also intercepted 9.4% NiEq over 0.6 m

Future

The company plans to complete 10,000 m to 12,000 m of exploration drilling by the end of 2022, with various assay results from its completed drilling initiatives pending. The bulk of the planned exploration drilling will focus on the West Pickle zone of the Tyko project, with Palladium One Mining Inc. conducting drilling at its Bulldozer intrusion as well as at the Smoke Lake zones. The company plans to continue with its drilling initiatives until the middle of December, with it aiming to fulfil its requirements with regard to the CAD$ 4.35 million raised in December 2021. Palladium One Mining Inc. also has 2 outstanding permits on the property.

Palladium One Mining Inc. will also continue to drill test the shallow VTEM targets at the Tyko project, as well as test the project’s linear interpreted large-scale feeder-dyke systems. The company is also underway with a systematic mapping campaign of the project which is designed around de-risking, mapping-out and prospecting mag feeder-type features. The mapping program will be followed up with a short-hole program targeting the potential for open-pit type resources in the prospective areas identified. The possibility of a deep targeted hole program with borehole EM looking for large conductive systems in targeted areas below 300 m depth also exists, with the company investigating possibly conducting a property-wide AMT survey targeting large-scale conductive roots to these systems to help focus deep drill programs.

Palladium One Mining Inc. is also underway with baseline environmental studies at the Kaukua deposit of the LK project, which includes creating a preliminary hydrological model, as well as various studies focused on vegetation, aquatic life and water. The aim of the studies is to enable future permitting at the project. The company will future install groundwater wells at the project and conduct geotechnical drilling.  Palladium One will also further its scoping study of the LK project, with it planning to identify alternative site layouts, investigating infrastructure requirements and preliminary throughput assessment.

To find out more, go to the Palladium One website