Ontario palladium developer Canadian Palladium Resources (CSE:BULL, OTC: DCNNF) announced that drilling has commenced at the company’s flagship East Bull Palladium Project located 90 kilometers west of Sudbury,Ontario. Sudbury is well known as one of the most prolific platinum-group metals mining districts in the world. Canadian Palladium (“BULL”) is committed to drilling roughly 10,000 meters over 30-40 holes at East Bull over the next few months with an objective of expanding and upgrading the existing 43-101 compliant 523,000 ounce palladium-equivalent inferred resource.
Historical drilling at East Bull was relatively shallow with no holes going deeper than 150 meters. BULL intends to drill many holes at a depth greater than 300 meters in order to expand the resource at depth. BULL has started drilling using one rig, and a second will be added once the logistics are settled and drill sites have had snow removed. The first drill is starting in the western end of the Valhalla zone and will progress eastward infilling gaps and drilling down dip. The plan is to establish a full-service camp within two kilometers of the project when the second drill is delivered to site.
There are two keys that are driving the potential for significantly improved economics at East Bull: 1. A much higher palladium price than what was used in the existing resource report (US$914 vs. US$2250 today) 2. A larger and upgraded resource that BULL hopes to outline with the 10,000 meter drill program that is underway.
The drill crew was mobilized quickly and BULL can drill year-round at East Bull, the project is also accessible by a numbered highway. After speaking with BULL CEO Wayne Tisdale yesterday he made a point to emphasize that they expect to have a very fast turnaround time with assays and the company expects to have first assays back and core on display in time for PDAC in early March.
Technically speaking the BULL chart has formed a very clean bullish pennant pattern:
A daily close above the C$.21 level would target an additional 30%-50% of near term upside. The relative strength is also in bullish territory after cooling off a bit in the last couple weeks.
Disclosure: Author is long BULL.CA shares at the time of publishing and may choose to buy or sell at any time without notice.
Disclaimer:
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.