Palladium One Mining Inc. (TSXV:PDM) is set to benefit from the lack of worthy palladium-related speculations in the market today
Capital Ideas Media | December 9, 2020 | SmallCapPower: Palladium prices have soared more than 200% during the past five years following a combination of tight global supply (most of world’s production is from South Africa and Russia, primarily as a by-product from platinum and nickel mining) as well as surging demand due to stricter environmental laws in Europe and China related to auto emissions (about 75% of palladium mined is used in catalytic converters for cleaner automotive exhaust systems).
(Originally published on Capital Ideas Media on October 6, 2020)
With few pure-play palladium miners available to investors, many speculators have set their sights on riskier exploration plays. One that looks promising is Palladium One Mining Inc. (TSXV:PDM).
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Shares of Palladium One have slid about 33% from its pre-pandemic high to its current price of $0.16, as the palladium price dropped sharply in March on automotive demand concerns related to the economic impact of COVID-19. Palladium prices have recovered somewhat since (up about 50% since mid-March).
Palladium One Mining has a 100% interest in the palladium-dominant Läntinen Koillismaa PGE-Copper-Nickel project located in Finland. A resource estimate for the Kaukua Deposit within Läntinen Koillismaa, released about a year ago, showed 635,600 palladium equivalent ounces at a grade of 1.80 grams per tonne (g/t) in the Indicated category, along with 525,800 Inferred palladium equivalent ounces grading 1.50 g/t. The model also presumes a conservative palladium price of US$1,100 per ounce (palladium is now trading at more than US$2300 per ounce).
This past week, Palladium One Mining announced that 11 discovery holes were drilled on the Kaukua South extension, each containing magmatic sulphide mineralization, which the Company said increases the mineralized strike length at Kaukua South from 600 m to 4 km. Assays results are pending.
Palladium One added that “multiple discoveries of magmatic sulfide mineralization have been outlined, and preliminary indications are that Kaukua South could be several times the size of the NI 43-101 Kaukua Open Pit Resource.”
The Fennoscandia shield, in which Läntinen Koillismaa lies, hosts world-class deposits such as Pechenga nickel and Portimo (Suhanko) palladium deposits.
Notable strategic investors in the Company include billionaire Eric Sprott, who owns about 21 million PDM shares.
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