This Canadian Palladium Junior Is Set To Drill Its Flagship Palladium Project In Ontario, Canada
Palladium has been on an astronomical rise in the last few months, on the back of strong industrial demand and deep structural supply deficits:
Palladium (Daily – One Year)
While the price of palladium has risen by more than 60% in the last year (to nearly US$2,200 per ounce), the number of viable palladium mining projects across the globe has not increased. In fact, palladium is a relatively scarce metal (palladium is more scarce than platinum and that relative scarcity is now reflected in the price difference between the two metals) and the vast majority of palladium is found in two countries; Russia and South Africa. Both of which have their own challenges from a mining investment standpoint.
Finding a viable palladium investment proposition in a safe mining jurisdiction is a tall order. In late 2019, South African miner Implats paid C$1 billion for struggling Canadian palladium producer North American Palladium. This particular acquisition was a strong sign that the lack of palladium assets had reached an extreme, and perhaps more importantly, producers of the metals were in a rush to acquire more production against the backdrop of deep structural deficits.
When an investor goes to try to find a palladium mining company, the choices are slim to none. In the producer category, there are a few South African companies of which the aforementioned Impala Platinum Holdings (“Implats”) is the main choice. Choices get even slimmer when we look at the palladium developers and junior explorers.
This brings us to Canadian Palladium Resources (CSE:BULL), an Ontario focused palladium developer whose flagship East Bull Palladium Project near Sudbury, Ontario hosts a 523,000 palladium-equivalent resource grading 1.46 grams/tonne Pd-Eq. Canadian Palladium intends to complete a financing in the next month and move quickly to begin drilling out East Bull in order to upgrade the resource in terms of size, grade, as well as upgrade inferred ounces to measured and indicated.
Key points to understand about East Bull:
Drilled over 1,800 meter strike length to maximum depth of 120 meters (near surface open-pittable resource).
Mineralized zone has a 3,600 meter strike length and is open at depth.
Potential target of 4x current resource to 240 m depth for 2,000,000 oz palladium-equivalent.
Mining friendly jurisdiction and brownfields exploration from an existing resource in a prolific platinum group metals region of Canada (Sudbury).
Canadian Palladium will drill 4,000+ meters over roughly 20 holes, and the drill targets have already been identified and drill permits are in hand.
Canadian Palladium CEO Wayne Tisdale offered the following comments about BULL and its upcoming drill program at East Bull:
“With Palladium reaching new highs of over $2,100/oz, we look forward to drilling the East Bull Palladium project to further expand the 43-101 compliant 523,000 oz palladium equivalent resource we have. This name change reflects our focus on a world-class asset in a mining friendly jurisdiction.”
With a challenging 2019 behind it, BULL is poised to ride the palladium bull market in 2020 and at a recent share price of C$.12, BULL has a modest fully-diluted market cap of only C$7 million. This leaves substantial room for upside should the company have drilling success and prove out a larger and/or higher grade palladium resource at East Bull.
BULL.CA (Daily – One Year)
Disclosure: The author owns Canadian Palladium shares at the time of publishing and may choose to buy or sell at any time without notice.
The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. Canadian Palladium Resources Inc. is a high-risk venture stock and not suitable for most investors. Consult Canadian Palladium Resources Inc.’s SEDAR profile for important risk disclosures. EnergyandGold has been compensated for marketing & promotional services by Canadian Palladium Resources Inc. so some of EnergyandGold.com’s coverage could be biased. EnergyandGold.com, EnergyandGold Publishing LTD, its writers and principals are not registered investment advisors and advice you to do your own due diligence with a licensed investment advisor prior to making any investment decisions.
This article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.