Vancouver, British Columbia--(Newsfile Corp. - January 9, 2020) - Palladium One Mining Inc. (TSXV: PDM) (FSE: 7N11) (OTC: NKORF) (the "Company" or "Palladium One") is pleased to announce that it has entered into a binding Letter of Intent ("LOI") to buy back an existing 2% Net Smelter Return ("NSR") royalty in respect of the historic Haukiaho deposit of the palladium dominant, LK PGE-Ni-Cu project in Finland.
"The historic Haukiaho deposit is now royalty free." said Derrick Weyrauch, president and chief executive officer. "Buying back the existing royalty on Haukiaho eliminates a dilutive overhang on the project while also providing future optionality."
The terms of the royalty buyback include a cash payment of C$50,000 and issuance of 375,000 common shares of the Company on closing. The transaction is expected to close this month, and is subject to definitive documentation, customary terms, conditions for a transaction of this nature and TSX Venture Exchange approval.
The Haukiaho zone is hosted in the basal unit of the Koillismaa Complex and was first discovered in the 1960's by Outokumpu while exploring for Copper and Nickel. Widely spaced historic reconnaissance drilling indicates the mineralized zone extends for at least 12 km along this basal unit. The 2013 historic Haukiaho resource estimate (Table 1) only covers ~2 km of this 12 km trend. The Haukiaho deposit shares many similarities to the nearby Kaukua deposit yet has a higher copper-nickel endowment.
The historic 2013 Haukiaho resource was based on very widely spaced drilling, and as such the Company decided that additional infill drilling prior to conducting a NI43-101 resource estimate is required. As a result, in 2019, the Company focused its efforts on the Kaukua deposit and published a resource estimate on September 9, 2019 - see summary below.
One of the primary objectives of the upcoming Phase 1 exploration program at the LK project is to infill and expand the historic Haukiaho deposit in preparation of a NI43-101 resource estimate.
Haukiaho Deposit Historic Resource Estimate1 at a 0.1 g/t Pd cut-off grade
|Category||Tonnage Mt||Pd g/t||Pd Koz||Pt g/t||Pt Koz||Au g/t||Au Koz||PGE (Pd+Pt+Au) g/t||PGE (Pd+Pt+Au) Moz||Cu %||Cu Mlb||Ni %||Ni Mlb|
Note 1: The Haukiaho historical resource estimate is extracted from the NI 43-101 technical report entitled 'A Technical Report of the Läntinen Koillismaa Project, Finland for Finore Mining Inc.', written by Mining Plus, dated September 18, 2013. Historical resources have not been verified by the Company and are not current, therefore reliance should not be placed on such historical information.
"We believe that the Haukiaho zone holds great potential not only for expansion of the historic Haukiaho deposit but also new discoveries along this ~12km trend" said Weyrauch.
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:
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.
Forward looking statements: 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 gold and other commodity prices; title matters; 6 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 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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