Palladium One Mining Inc. [PDM-TSXV; NKORF-OTC; 7N1-FSE] reported results of Kaukua South hole LK21-081, which intersected 4.07 g/t palladium equivalent (PdEq) over 24 metres, within 2.08 g/t PdEq over 112 metres, starting at 171.5 metres depth.
This represents the highest-grade intercept over width that drilling has returned to date, at the Kaukua South zone of the 100%-owned LK project in Finland. In addition, down-plunge drilling is successfully expanding higher-grade core zones to depth as demonstrated by hole LK21-080, which intersected 1.86 g/t PdEq over 40.5 metres, including 2.95 g/t PdEq over 3.0 metres from 229.5 metres depth. Multiple holes now demonstrate increasing grade and widths at depth.
Derrick Weyrauch, president and CEO, commented: “Our Kaukua South discovery continues to deliver excellent results and demonstrates potential for higher-grade core zones within the Kaukua area. We believe there are several other higher-grade core zones yet to be defined based on the significant number of drill targets still to be tested.”
Hole LK21-081 returned 234 gram-metres, surpassing hole LK20-016, which returned 201 gram-metres reported October 22, 2021. These holes are part of two parallel higher-grade, southwest-plunging core zones or shoots at Kaukua South. A similar core zone occurs at the existing Kaukua deposit, where it occupies a linear depression in the footwall contact.
These core zones may represent magma channels, within the marginal phase of the Koillismaa mafic-ultramafic complex, that have thermally eroded the footwall rocks. Induced polarization (IP) surveys have proven very effective at targeting these higher-grade core zones, and two potential new zones have been identified to the west and east of the drill-defined mineralization at Kaukua South, see news release dated July 7, 2021. Refer to company press release for complete drill results.
The company is now calculating palladium equivalent using $1,600 (U.S.) per ounce for palladium, $1,100 (U.S.) per ounce for platinum, $1,650 (U.S.) per ounce for gold, $3.50 (U.S.) per pound for copper and $7.50 (U.S.) per pound for nickel consistent with the calculation used in the company’s September, 2021, National Instrument 43-101 Haukiaho resource estimate.
Spot gold equivalent
Spot palladium and gold equivalents are calculated using recent spot prices for comparison purposes using US$2,300/oz palladium, US$1,000/oz platinum, US$1,800/oz gold, US$4.50/lb copper and US$9/lb nickel.
Palladium One Mining’s flagship project is the Lantinen Koillismaa project, a palladium-dominant platinum-group-element-copper-nickel project in north-central Finland, ranked by the Fraser Institute as one of the world’s top countries for mineral exploration and development. Exploration at LK is focused on targeting disseminated sulfides along 38 km of favourable basal contact and building on an established NI 43-101 open-pit mineral resource.