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Reyna Silver releases initial results from Guigui drill program

 
Reyna Silver (RSLV.V) has finally released the assay results from its 13 hole drill program on its fully owned Guigui silver project in Mexico’s Chihuahua…

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This article was originally published by Caesars Report

Reyna Silver (RSLV.V) has finally released the assay results from its 13 hole drill program on its fully owned Guigui silver project in Mexico’s Chihuahua state. Drilling started in December of last year, a second drill rig was added in June but it took almost 11 months from drilling the first hole to receiving and releasing the assay results from the 12,849 meter drill program. Rather than providing interim updates, Reyna Silver elected to wait for all assays to be returned by the lab before making an announcement.

That initial drill program was targeting an area of 3 by 5 kilometers which was the main zone of attention based on historical mining activities, surface mapping and re-analyzing the data from the historic drill holes. Virtually all holes were drilled in the northern part of the Guigui land package, within kilometers from four historical mine sites.

Reyna Silver is very excited about the results of hole 28, where it encountered a 55 meter wide skarn zone which appears to be entirely mineralized. The assay results indicate an average grade of 23.2 g/t and approximately 2.5% ZnPb over the entire length of almost 55 meters, including a narrower interval of almost 16 meters containing 60.51 g/t silver, 2.19% lead and 5.85% zinc. According to Reyna’s Chief Exploration Advisor, this is ‘exactly what the model says you should expect to see when approaching the hub of a major CRD mineralization center’, and encountering this skarn zone creates a starting point for exploring upwards where the sulphides could and should have higher metal grades while the search for the source intrusion will be ongoing.

A second phase drill program (consisting of 8,000 meters and is fully permitted and fully funded) has already started in September and the drill bit will be working upwards and outwards from hole 28 on to expand the mineralized footprint of the system.


Disclosure: The author has a long position in Reyna Silver. Reyna is a sponsor of the website. Please read our disclaimer.


Author: CR Team

Precious Metals

Peter Schiff: The ‘Devil You Know’ Is Still A Devil

Peter Schiff: The ‘Devil You Know’ Is Still A Devil

Via SchiffGold.com,

On Monday, President Joe Biden reappointed Jerome Powell to head…

Peter Schiff: The ‘Devil You Know’ Is Still A Devil

Via SchiffGold.com,

On Monday, President Joe Biden reappointed Jerome Powell to head up the Federal Reserve and nominated Lael Brainard to serve as the vice-chair. In his podcast, Peter Schiff talked about Biden’s decision, the markets’ reaction and what the Fed will (or will not) do moving forward. Ultimately, Peter said the devil you know is still a devil.

Peter predicted Biden would stick with Powell. He said there was no political upside for him to do otherwise.

If something happened, something goes wrong, which something is going to go wrong most likely — so, it’s going got hit the fan — and if it hit the fan with Brainard at the helm, well, Biden would own it. People could say, ‘Oh, the reason the economy went off a cliff, the reason that inflation is running out of control, it’s all because you put Brainard in as Fed chairman.’ Whereas, if everything falls apart under Powell’s watch, well, Biden can simply say, ‘It’s not my fault. Powell was Trump’s guy. I just left him in power because he was already there and there was bipartisan support.’

If things go well under Powell, Biden can take credit, saying, “Hey, I renominated him.”

Peter said the crazy thing about the announcement, which was entirely predictable, was the market reaction. In the two days after the announcement, gold sold off by over $60 dollars and fell back below $1,800 an ounce. Silver took an even bigger hit, down about $1.25. Meanwhile, there was a big rally in the dollar index and bond yields went up. Peter said it makes no sense.

All of a sudden, Powell, the guy who’s been there the entire time, almost four years, the architect of this reckless monetary policy, zero percent interest rates, huge quantitative easing, inflation is transitory, there’s nothing to worry about — the same guy who brought us to this inflation party — we’re going out with the same guy again and everybody now is celebrating that somehow this massive dove has become a hawk. All of a sudden, everybody is excited that Powell is going to fight inflation in his second term.

What makes people think Powell is suddenly going to become an inflation warrior? He hasn’t fought it at all up to this point.

He spent his first term lighting inflation fires. Why anybody believes he’s going to put out those fires in his second term is beyond me.”

The reaction in the gold market was particularly puzzling. Just a couple of days ago, people were buying gold because they were worried about inflation. The yellow metal pushed above $1,850 after October CPI came in much hotter than expected.

One of the main reasons to be worried about inflation was because Powell was chairing the Federal Reserve. And Powell had made clear that the Fed is doing nothing about inflation. They think it’s transitory anyway. … If you were worried about inflation and you were buying gold a couple of days ago, why are you suddenly no longer worried about inflation and dumping your gold?”

Sure, Brainard would have likely directed a slightly looser monetary policy than Powell. But she’s not that much more dovish than Powell.

Powell’s not a hawk. And so, simply because we didn’t replace one dove with an even bigger dove doesn’t mean the dove that’s still there is going to turn into a hawk and suddenly start fighting inflation. He’s not.”

If anything, the makeup of the FOMC will be even more dovish now than it was before with Brainard serving as vice-chair.

If you were worried about inflation and the current FOMC, you should be even more worried, or slightly more worried as a result of this change than you are right now. Yet the market is acting as if everything has changed and we’re going to have this tough on inflation Fed.”

After the announcement, Biden, Powell and Brainard spoke to the press. All three talked about fighting inflation. Peter said he thinks the articulation of that commitment got everybody thinking that the central bank is now serious about the inflation problem. None of this makes sense

Politically, they have to say they’re against inflation because inflation is all over the news. It’s what everybody is complaining about. So, even if they have no intention of doing anything about it, they have to at least create the pretense that that’s what they’re going to do. So, you wouldn’t expect anything less. But even if, as a result of this tough talk on inflation, they actually do taper a little bit quicker and raise rates a little bit sooner, who cares? Because even a quicker pace is meaningless in the face of what’s going on.”

Even using the government numbers, inflation is running at around 7%. It would likely be double that using real numbers.

In order to rein in this inflation in the 1970s, or by 1980, rates had to go to 20%. All we’re talking about is a couple of rate hikes. We won’t even raise rates up to 1%. So, why should this make any difference to an inflation rate this high? If you could fight inflation with 1% interest rates, well, why didn’t we do that in the 1970s? It’s because you can’t — especially when inflation is already as bad as it is right now. And by the way, it will be even worse by the middle of 2022 when they finally get around to supposedly raising interest rates — if they actually do it.”

Meanwhile, during the taper, the Fed will still be doing quantitative easing. That, by definition, is creating even more inflation.

You can’t put out a fire by pouring less gasoline on it. Because any gasoline you pour on the fire is going to make it bigger. That’s all the Fed is claiming it’s going to do.”

To truly fight inflation, the Fed actually needs to tighten. It needs to shrink its balance sheet and shrink the money supply. It’s not talking about doing that.

On top of that, Biden needs the Fed to keep inflating and monetizing the deficits in order to pay for all of his massive spending plans.

If the Fed tapers to zero, there’s no way the private sector would finance all these deficits without the help of the Fed. I don’t know why no one has put two and two together — that what the Fed is promising is impossible.”

Tyler Durden
Sat, 11/27/2021 – 15:45












Author: Tyler Durden

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Precious Metals

New Covid Variant Spooked the Markets; Gold Fundamentals Remained Solid

2021.11.27
US and Canadian stock markets fell sharply on Friday in reaction to a new coronavirus variant originating in South Africa.
The Dow Jones Industrial…

New covid variant spooks markets; gold un-moved but fundamentals solid

2021.11.27

US and Canadian stock markets fell sharply on Friday in reaction to a new coronavirus variant originating in South Africa.

The Dow Jones Industrial Average had its worst day of the year, at one point dropping over 1,000 points before recovering about 100 points at time of writing. The S&P 500 and the Nasdaq each lost 2.2% while in Canada, the S&P/ TSX composite index sold off nearly 500 points, as the price of oil tumbled over 10% on demand destruction fears.

The World Health Organization on Friday declared the new South African strain of covid-19 a “variant of concern” and named it omicron. The WHO defines a variant of concern as one that shows genetic changes that in theory could give it the potential to affect transmissibility, severity of disease, or how well vaccines or treatments work on the virus.

Up to now the most serious version of covid has been the delta variant.  

According to a report by CNBC, South African scientists identified a new variant they say is behind a recent spike in infections in Gauteng, the country’s most populous province. The covid mutation was also detected in travelers to Hong Kong and Botswana.

Cases in South Africa ballooned to 1,200 on Wednesday and 2,465 on Thursday, compared to a daily count of just over 200 in recent weeks. Scientists are worried that “omicron” has a high number of mutations (30) in the coronavirus’ spike protein which could affect how easily it spreads.

This concern was enough to prompt British authorities to make travelers arriving in the UK from South Africa and neighboring countries to self-isolate for 10 days. The United States will also restrict travel from the region starting Monday. CNBC quoted an infectious disease specialist at Imperial College London saying that the new variant has an “unprecedented” number of mutations and that compared to previous variants, the South African version might evade current vaccines.

That could trigger widespread travel restrictions and renewed curbs on social activity, potentially even lockdowns, throwing a wrench into the machinery of economic recovery for most of the world’s major economies.

Investors and traders didn’t like what they were hearing and on Friday they sold off risky assets like stocks and bitcoin, which was down over $4,600 at time of writing, or 7.5%, to $54,292.

Bond yields also fell sharply, with benchmark US Treasuries on track for their biggest drop since the start of the pandemic in early 2020. The yield on the 10-year slipped over 15 basis points to 1.485% while the 30-year fell to 1.826%, in mid-day trading Friday. Yields move in the opposite direction of bond prices, which typically rise on market uncertainty.

To us at AOTH it’s all good for gold.

There is a strong correlation between rising gold prices and falling bond yields, although gold’s performance Friday was oddly weak. Despite climbing to $1,814 per ounce at the start of the session, strong selling pressure pushed the precious metal to an intra-day low of $1,784; it was changing hands for around $1,791, at time of writing.

5-year spot gold. Source: Kitco

Gold has been on a run, a week ago trading at its highest level since June. The latest US inflation data (6.2% in October) has reinforced concerns over rising prices, especially after seeing the central banks’ approach to soothe the situation.

While a growing number of Federal Reserve officials have indicated they are open to tapering the Fed’s bond-buying program, if inflation holds, and would move more quickly to raise interest rates, the latest covid variant scare appears to be pouring cold water on that notion.

Bloomberg reports that Money-markets pushed back the timing of a first 25-basis-point rate increase by the Federal Reserve to September from June, while briefly pricing out any more hikes unit 2023…

It’s a similar story in the U.K. where the Bank of England is now expected to tighten policy in February instead of next month. Wagers that the European Central Bank will raise its deposit rate by the end of next year were also slashed…

With gold widely seen as a hedge against inflation, it makes sense for the safe-haven metal to be in demand.

It’s also important to note that gold has been rallying despite a stronger US dollar, which competes with gold as a safe store of value. This indicates that investors have looked past this to focus on its traditional role as an inflation hedge.

In the near term, there’s optimism that rising price levels could offer more support for the gold market.

Analysts at UBS have lifted their gold price forecasts, highlighting risks of further strength in inflation in early 2022. The Swiss investment bank’s March-end gold price target was raised to $1,800/oz, up from $1,700.

While some, including UBS, are predicting a moderation in inflation expectations for the coming year, this will likely take longer than most have anticipated.

The Fed’s official line is that inflation is “transitory” based on supply chain disruptions resulting from the pandemic. We don’t buy it. Sure, we accept the idea that high demand for products and services in countries coming out of the pandemic has led to supply shortages and higher prices in a number of industries. But there are several inflation manifestations that simply cannot be called temporary or transitory. We have reported on most, if not all of them.

To recap, an energy crunch has pushed coal and natural gas prices to record highs. We also have energy inflation because of too massive a shift to renewables and a de-investment in fossil fuels, before renewable energy is ready to take the place of oil, natural gas and coal. The problem isn’t about to sort itself out anytime soon, because even though solar and wind power are getting less expensive, many parts of the world still depend on coal and natural gas as a primary source, or as a backup.

Research from Dalhousie University’s Agri-Food Analytics Lab, quoted by BNN Bloomberg, shows that food inflation in Canada is close to 5%, well above the normal 1-2%. A similar trend is happening in the United States. In September food prices jumped 0.9% with the largest rise since April 2020 driven by a surge in meat costs.

It isn’t only retail food shoppers that are feeling the pinch of climbing prices. Recently the Green Markets North American Fertilizer Index hit a record high, rising 7.9% to US$996.32 per ton, and blasting past its 2008 peak. Higher fertilizer prices are usually passed onto the end user, the buyer of grains, fruits, vegetables and meats, for the grower/ farmer/ rancher to preserve his profit margin. This is precisely what we see happening right now.

Climate change is affecting not only the prices of agricultural commodities and food, but the entire commodities complex. As global temperatures warm, practically everything that is grown or mined is impacted. The prices of a number of industrial metals, including copper, zinc, nickel and aluminum, have seen healthy gains this year due to a constellation of factors, including robust demand from top commodities buyer China.

As for what the new coronavirus variant could mean for gold, we see a “rinse and repeat” scenario taking place.

If the new stain turns out to be as potent as it seems, central banks will shrink away from monetary tightening, instead choosing to fall back on their current dovish monetary policies (low interest rates, bond-buying, money-printing), which are great for precious metals.

Depending on how quickly and to what extent it spreads, US states (and Canadian provinces) may be forced to re-instate mask mandates, social distancing measures, school closures, etc., to prevent health care systems from being overloaded. If stimulus check disbursements continue, along with potentially hundreds of billions in new stimulus measures to fight a strengthened pandemic, it could easily push inflation higher.

Note that in 2008, “quantifornication” i.e., rock-bottom interest rates and the monthly purchases of mortgage-backed securities and government bonds did not cause inflation, so the idea that tapering QE will stop inflation doesn’t make sense, imo.

Finally there is a good amount of geopolitical risk in the world right now that should boost safe-haven demand for gold.

Despite a friendly online meeting between US President Biden and Chinese President Xi, the US government recently added a dozen more Chinese companies to its restricted trade list, citing concerns that some of the firms are help to develop the Chinese military’s quantum computing program.

Tensions between the United States and China over Taiwan are also ratcheting up, after five US lawmakers this week arrived in Taiwan to meet with government officials. Beijing considers the island to be a renegade province and has made re-unification with the Motherland a top priority.

Meanwhile over in Belarus, there are fears that Russia is trying to sow chaos in the landlocked Eastern European country as a pretext for an invasion of Ukraine to the south. The European Union has blamed Minsk, the capital and seat of government, for flying in thousands of Middle Eastern migrants, who are hoping to make it to Europe, yet instead are stranded on the border between Belarus and Poland in terrible conditions. This week Ukraine reportedly deployed 8,500 troops to the Belarusian border in anticipation of a clash with Russia, which according to the head of Ukraine’s military intelligence, has massed 92,000 troops around Ukraine’s borders and is preparing for an attack by the end of January or early February.

The world is clearly getting more dangerous and when combined with the resurgent threat of a covid variant that may be resistant to current vaccines, investors should be looking at safe investments that won’t be diminished by inflation yet offer solid growth potential. Junior gold stocks are an excellent choice in this type of environment and four of my favorites — all of them are undervalued and offer major exploration upside — are listed below.

Goldshore Resources (TSXV: GSHR) (OTC: GSHRF) (FRA: 8X00) has embarked on an extensive 100,000-meter drill program on its flagship Moss Lake project that will run for about a year until mid-2022.

Results of drilling so far have not disappointed, giving us a glimpse of what may be a significant mineralized system within northwestern Ontario, a historically productive gold-mining province. From the first three holes reported, the highlight was MMD-21-001, which was mineralized over 550m. This corresponds to an estimated true thickness of 422m and a 52% increase over the historical resource model.

Several higher-grade zones were identified:

  • 57.00m at 1.20 g/t Au from 4.0m and
  • 36.00m at 1.15 g/t Au from 182.0m in MMD-21-003
    31.00m at 1.18 g/t Au from 122.0m and
  • 16.30m at 2.09 g/t Au from 350.7m in MMD-21-001
     35.00m at 1.09 g/t Au from 100.0m in MMD-21-002

The three holes reported here represent only 2.3% of the planned 100,000 meters of drilling scheduled to be completed by the end of Q2 of 2022 as the drill program ramps-up from two to four drill rigs.

The property is located in an excellent jurisdiction with a number of major gold deposits nearby, including Kirkland Lake Gold’s Detour project with 15.7Moz proven and probable reserves at 0.82 g/t Au, New Gold’s Rainy River with 2.6Moz P&P at 1.06 g/t Au, and Cote (IAMGOLD & Sumitomo) with 7.3Moz P&P at 1.0 g/t Au.

Moss Lake itself hosts a number of gold and base metal rich deposits. These include the Moss Lake deposit, the East Coldstream deposit, the historically producing North Coldstream mine and the Hamlin zone, all of which occur over a mineralized trend exceeding 20 km in length.

Goldshore Resources has five properties located in northwestern Ontario, a district prized for its gold endowment.

Magna Gold’s (TSXV: MGR) (OTCQB: MGLQF) flagship San Francisco project in Sonora, Mexico, resumed production in Q3 2020 and achieved commercial production earlier this year.

Located 150 km north of Hermosillo, this 47,395-hectare property consists of two previously mined open pits (San Francisco and Chicharra) and associated heap leaching facilities.

The mine was previously operated from 1995 through 2000. During that time, approximately 13.5 million tonnes of ore at a grade of 1.13 g/t Au were treated by heap leaching, and 300,834 ounces of gold were recovered.

Magna Gold’s gold and silver properties in Mexico

An updated prefeasibility study (PFS) on the property last September showed total proven and probable reserves of 47.6 million tonnes, graded at 0.495 g/t Au, leaving 758,000 ounces of contained gold. Now at full capacity, the San Francisco mine is capable of producing as much as 90,000 ounces annually.

There is also ample room for resource expansion, with an estimated upside of 3Moz gold and 50Moz silver.

Meanwhile, Magna has also been advancing several of its other precious metals assets across Mexico. The next area of exploration focus is Chihuahua, where its newly acquired Margarita silver project is situated. The project is a low-intermediate sulfidation epithermal Ag-Pb-Zn system, which can be traced to many of Mexico’s producing silver mines.

Drilling programs are also planned at the San Judas and Veta Tierra gold projects, and the La Pima silver project.

In the southern part of the Golden Triangle in northwestern British Columbia, Dolly Varden Silver Corp’s (TSXV: DV) (OTC: DOLLF), silver project of the same name lies in an area well known for its base and precious metals deposits.

The property hosts four historically active silver mines: Dolly Varden, Torbrit, North Star and Wolf.

Dolly Varden project location

Historical records show that the Torbrit mine produced 18.5 million ounces of silver at an average recovered grade of 13.58 oz per tonne between 1949 and 1959, while the Dolly Varden mine had 1.5 million ounces at an average grade of 35.7 oz per tonne in the early 1920s.

Altogether, about 20 million ounces of silver were produced from the two historical mines over a 40-year period, with assays of ore as high as 2,200 oz (over 72 kg) per tonne.

Now, under Dolly Varden’s control, the path to restoring these silver mines back to production has begun, much like how Skeena Resources is reawakening the Eskay Creek mine up north.

An updated NI 43-101 resource estimate completed by the company in 2019 revealed 32.9Moz silver in indicated resources and 11.477Moz inferred, for a total of 44Moz silver, adjacent to the historical deposits.

An aggressive two-year drilling campaign is underway to expand these resources. Last year’s drilling returned consistent intervals of high-grade silver mineralization at the Torbrit silver deposit, which Dolly Varden believes has the potential to support economically attractive underground bulk-mining.

The company also hasn’t ruled out a gold discovery consistent with the +1 million-ounce resource at the adjacent Homestake property, in addition to the potential for another Torbrit-like silver discovery.

About 170 km northeast of Reno, Nevada, Getchell Gold (CSE: GTCH) (OTCQB: GGLDF) is in the midst of a drill campaign at the advanced-stage Fondaway Canyon project, comprising 170 unpatented lode claims in Churchill County.

The property has been the subject of multiple exploration campaigns dating back to the late 1980s and early ‘90s, with nearly 50,000m of drilling completed. It covers 12 known veins, including five mineralized areas — Colorado, Halfmoon, Paperweight, Silica Ridge and Hamburger Hill.

Map of Fondaway Canyon showing 2021 drill locations

The latest technical report on Fondaway Canyon (2017) provided an estimate of 409,000 oz indicated gold resources grading 6.18 g/t Au and 660,000 oz inferred grading 6.4 g/t Au, for a combined 1.1 million oz. Up to 80% of these ounces are within Colorado, Paperweight and Halfmoon, with the remainder found in parallel veins or splays off the main veins.

Five of the six holes drilled as part of a 2,000m program intersected significant gold intercepts within the Central Area, which is considered by company management to be the “nexus for the gold-mineralizing system” observed at Fondaway.

Following up on the drilling success, which Getchell says “blew the potential of the project wide open” by producing a revised geological interpretation for Fondaway that extrapolated the continuity of the gold mineralization over extensive distances, the company decided to proceed with a drill program twice the size this year.

The 2021 program is designed to complete sufficient infill drilling to confirm this new geological model, thus elevating the resource estimate from the current 1.1Moz. Getchell will also continue stepping out from known gold intercepts to expand the geological model.

The results so far have been promising, with the latest drill hole returning one of the best cumulative series of gold intercepts in the project’s 45-year history. This was also the seventh consecutive hole to hit substantive mineralization, with more results still to come.

Richard (Rick) Mills
aheadoftheherd.com
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Richard does not own shares of Goldshore Resources (TSXV: GSHR), Magna Gold (TSXV: MGR), Dolly Varden Silver Corp’s (TSXV: DV).

Richard owns shares of Getchell Gold (CSE: GTCH).

GSHR, MGR, DV and GTCH are paid advertisers on Richards site aheadoftheherd.com










Author: Gail Mills

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Precious Metals

Palladium One Extends High-Grade Mineralization 250m SW of Kaukua Open-Pit Resource

2021.11.27
Palladium One Mining (TSXV: PDM) (FRA: 7N11) (OTC: NKORF)  
continues to advance its Läntinen Koillismaa (LK) platinum group element-copper-nickel…

2021.11.27

Palladium One Mining (TSXV: PDM) (FRA: 7N11) (OTC: NKORF)  

continues to advance its Läntinen Koillismaa (LK) platinum group element-copper-nickel property in Finland — this week announcing that initial down plunge drilling has extended mineralization 250 meters southwest of the open-pit constrained resource estimate at the Kaukua deposit.

Hole LK21-101 intersected 1.5 g/t palladium equivalent (PdEq) over 74.5 meters starting at 273 meters down hole, and returned a higher-grade 2.2 g/t PdEq over 19.6 meters.

Other high-grade intercepts included:

  • Hole LK21-102, @ 3.2 g/t PdEq over 13.7 meters, within 1.6 g/t PdEq over 113.6m, with individual samples grading up to 9.6 g/t PdEq over 1m;
  • Hole LK21-100, @ 3.3 g/t PdEq over 9.6m, within 1.5 g/t over 113.4m, with individual samples grading up to 5.9 g/t PdEq over 1.5m.

“The high-grade ‘Core Zone’ of the Kaukua deposit has been extended to the southwest and remains open for expansion. These are among the thickest intercepts to date within the Kaukua deposit and will add significant tonnage to our existing resource endowment,” said Palladium One’s CEO, Derrick Weyrauch, in the Nov. 23 news release.

The news from Kaukua alters the geological model, in a good way. As Palladium One explains,

Previous geological interpretations suggested that the Kaukua deposit was cut-off by a northwest trending fault, occupying a distinct magnetic low and topographic lineament. Drilling has demonstrated that the magnetic low is the result of a later cross cutting dyke (now referred to as the high-titanium gabbro dyke) and that the Kaukua deposit remains open to the south.

Resource definition drilling at Kaukua and the western half of Kaukua South (together known as the Kaukua area) is complete, with an updated NI 43-101 resource estimate scheduled for the first quarter, 2022.

While the Haukiahio trend is more copper-nickel rich, the Kaukua deposit contains mostly platinum group elements, with two-thirds of the value in palladium and platinum.

Historic and current drilling in the Kaukua and Kaukua Southwest area. Assays have been received for holes up to LK21-103, the remainder are pending. Background is induced polarization (IP) chargeability.
Cross sections showing holes LK21-102, 107, along with historic holes KAU07-005, KAU12-057 and 068, and their position with respect to the 2019 Kaukua open-pit resource estimate.

The Kaukua mineralized system is also much larger than previously understood, as evidenced by last year’s major discovery about 500m away at Kaukua South, which hosts a >4 km-long IP chargeability anomaly, of which 3.5 km had never been tested prior to Palladium One’s drilling work.

Initial drilling last year, therefore, focused on expanding known mineralization to the east of existing drill intercepts in the Kaukua South Zone, taking priority over the planned drilling to upgrade and convert the historical resource estimate at Haukiaho.

(As announced in a Sep. 7 news release, results from a 2,000m drill program at the Haukiaho Zone significantly increased this area’s resources (NI 43-101-compliant) to 32.7 million tonnes grading 1.15 g/t PdEq for 1.21 million ounces of contained PdEq. This resource update essentially doubles the resource endowment of the entire LK project, which now boasts 11 million tonnes of indicated resources grading 1.60 g/t PdEq (600,000 oz PdEq) and 44 million tonnes of inferred resources grading 1.19 g/t PdEq (1.7 million oz PdEq))

Kaukua South drilling successfully confirmed the eastern extension and the over-4 km strike length, insinuating the presence of a large-scale, shallow mineralized system with significant continuity.

Phase 2 drilling by Palladium One this year continued to return significant PGE grades and widths, including 47m at 2.3 g/t PdEq and 53m @ 2.1 g/t PdEq, and was successful in extending the strike length of the Upper Zone mineralization.

These results added to the company’s belief that it could add a significant amount of open-pit resources to the upcoming NI 43-101 resource estimate upgrade.

Last month the company announced the highest-grade hole to date at LK, which intersected 4.07 g/t PdEq over 24m within 2.08 g/t Pd_Eq over 112m, starting at 171.5m depth.

The question is not if, but by how much, the Kaukua drilling will add to the already doubled mineral resources at the LK property.

The Kaukua Zone at LK is mostly a palladium-platinum-gold play, however it may surprise readers to learn there are significant base metal values particularly at Haukiaho, where two-thirds of the zone’s value is in nickel and copper compared to Kaukua where 66% of the value is in palladium and platinum.

Indeed Haukiaho hosts some of the highest nickel grades on the LK project. At 17 km in length, the Haukiaho trend currently represents the largest continuous patch of blue-sky potential.

The latest resource estimate of 1.2 million ounces PdEq grading 1.15% g/t, comprises only 3 km of strike length; 2 km of strike extent, immediately east of the Haukiaho resource estimate, contains two significant IP chargeability anomalies with sufficient historic drilling to potentially be upgraded to inferred resources with modest additional drilling.

The remaining 12 km of the Haukiaho trend has not been drill-tested by the company, though widely spaced historic drilling has demonstrated that the trend is mineralized. This drilling provides a high level of confidence for potential additional nickel-copper resources to be delineated, Palladium One said.

Also worth noting is the fact that the Haukiaho Zone’s resource estimate contains cobalt. There is a reasonable expectation that the next resource estimate update at the Kaukua Zone where PDM is concentrating its drill program, will also contain notable values of the crucial lithium-ion battery component.

Tyko

As for Palladium One’s Tyko nickel-copper project in Ontario, in a Nov. 16 project update the company says geophysical crews are on site conducting ground-based electromagnetic surveys on key areas; three new exploration permit applications have been filed for drill-testing the newly identified EM anomalies; and a fourth exploration permit application has been made to expand upon the existing Smoke Lake exploration permit, to allow for additional step-out drill pad locations.

“We eagerly await receipt of new exploration permits for Tyko so that we can get back to drilling and make additional discoveries.” said Derrick Weyrauch, President and CEO.

The project known for its high sufide nickel tenor, received the Bernie Schnieders 2020 Discovery of the Year Award, presented by the Northwestern Ontario Prospectors Association (NWOPA).  

It covers approximately 24,500 hectares within the highly prospective Mid-Continent Rift nickel province, including over 7,000 hectares of the mafic-ultramafic Bulldozer intrusion, which has seen virtually no geological mapping nor exploration.

The Tyko project is located 25 km north of the Hemlo mining complex, in northwestern Ontario.

The Archean-aged mafic-ultramafic intrusion is rich in nickel, containing twice as much the battery metal as copper, and equal amounts of platinum and palladium.

According to the company, the high tenor of the sulfide minerals suggests a valuable concentrate could be produced, and that even if the sulfides are disseminated, the deposit could still be economic.

Drilling in 2020 primarily focused on the Smoke Lake target, an EM anomaly identified through geophysical surveying. Magnetic survey undertaken shortly before drilling helped to refine the anomaly, resulting in the successful discovery of massive magmatic sulfides.

The first discovery of massive sulfide mineralization at Tyko was confirmed in January, when the company announced drill intercepts from massive magmatic sulfide of up to 9.9% nickel equivalent. Subsequent drill results reported from the 2020 program were a resounding success, confirming the high-grade nature of the deposit.

A second-phase, 2,000m drill program was initiated in April to follow up on these high-grade hits. The assays to date have been excellent, including massive magmatic sulfide intercepts grading up to 10.2% nickel equivalent, demonstrating a robust mineralization spread over a distance of at least 18 km.

In addition to the high-grade Smoke Lake Zone, Palladium One believes there are new zones of nickel-copper mineralization yet to be discovered.

Preliminary results of the recently completed airborne EM survey have identified as many as four significant multi-line EM anomalies on the Tyko nickel-copper project, which further support this hypothesis.

Of particular interest are two anomalies in the Bulldozer Intrusion. These are the first EM anomalies identified in this large mafic-ultramafic intrusion and hint at potentially large tonnage targets.

Assay results from the Phase 2 drill program at Smoke Lake are pending.

Palladium One Mining
TSXV: PDM, FRA: 7N11, OTC: NKORF
Cdn$0.18, 2021.11.26
Shares Outstanding 248m
Market cap Cdn$43.4m
PDM website

Richard (Rick) Mills
aheadoftheherd.com
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Author: Gail Mills

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