Palladium One Mining (TSXV: PDM; OTC: NKORF) has released a resource update on its 100% owned L??ntinen Koillismaa (LK) PGE-copper-nickel project in north-central Finland that increases tonnage in the indicated category by 250%, and inferred tonnage by 14%.
The new resource encompasses three open-pits in the Kaukua area, including an initial resource for Kaukua South and Murtolampi, and one at Haukiaho, located 10 km south of Kaukua.
Indicated resources covering the Kaukua area are estimated at 38.2 million tonnes grading 0.61 gram palladium per tonne, 0.22 gram platinum, 0.07 gram gold, 0.13% copper, 0.11% nickel and 64.56 gram cobalt per tonne. This represents a significant increase of 248% over the indicated tonnes estimated previously. Nearly half (44%) of the total resource at the LK project is now in the indicated category.
Inferred resources, contained in both the Kaukua and Murtolampi pits and the Haukiaho zone, totalled 49.7 million tonnes grading 0.43 gram palladium per tonne, 0.17 gram platinum, 0.09 gram gold, 0.16% copper, 0.14% nickel and 73.98 grams cobalt, for a 14% increase.
Overall, the LK property has contained metals of 740,000 oz. palladium, 260,000 oz. platinum, 80,000 oz. gold, 110.7 million lb. copper, 91.6 million lb. nickel and 5.4 million lb. cobalt in the indicated category, plus 680,000 oz. palladium, 260,000 oz. platinum, 140,000 oz. gold, 172.9 million lb. copper, 151.5 million lb. nickel and 8.1 million lb. cobalt in the inferred category.
The mineral resources were reported based on a preliminary open-pit constraining surface using a net smelter return (NSR) pit discard cut-off of US$12.5 per tonne. Long-term metal prices of US$1,700 per oz. palladium, US$1,100 per oz. platinum, US$1,800 per oz. gold, US$4.25 per lb. copper, US$8.50 per lb. nickel and US$25 per lb. cobalt were assumed. Waste-to-ore ratios were 1.48:1 for the Kaukua area (including Murtolampi) and 0.58:1 at Haukiaho.
The recovered and payable metal assumptions are based on the 2022 Phase II metallurgical testing program, which demonstrated copper concentrate grades of 30% and nickel concentrate grades of 4.8%, as well as preliminary indicative copper and nickel smelter quotes.
"With a grade of 30% copper in the copper concentrate and a value of approximately US$4,200 per tonne for the nickel concentrate, both are highly marketable, which bodes well for future concentrate marketing negotiations," Palladium One's president and CEO Derrick Weyrauch commented.
According to Palladium One, the LK project remains open for additional resource expansion both along strike and at depth. The mineral resource covers approximately 5 km of the 38-km marginal series contact zone, for which reconnaissance historical drilling indicated mineralization along nearly its entire length.
The company's near-term targeting includes two additional open-pit targets in the Kaukua area and possibly multiple open-pit targets along the 17-km Haukiaho trend.
Three areas of target potential have been defined for near-term resource expansion, representing an additional 2.4-km of strike length along the favourable marginal series and could add between 21.6 million and 36 million tonnes of resources, Palladium One said.
However, the bulk of the company's exploration efforts in 2022 is expected to be at the Tyko nickel-copper project in Ontario, where it plans to drill test several areas with highly anomalous soil sample values of copper nickel and cobalt.