Palladium One Announces Mineral Resource Estimate for the LK PGE-Cu-Ni Project

1.1 Million Ounces Total Precious Metals, 111 Million Pounds Copper, 92 Million Pounds Nickel and 5 Million Pounds Cobalt in Indicated AND 1.1 million Ounces Total Precious Metals, 173 Million Pounds Copper, 152 Million Pounds Nickel and 8 Million Pounds Cobalt in Inferred

April 25, 2022 – Toronto, Ontario – Palladium One Mining Inc. (TSX-V: PDM, OTCQB: NKORF, FRA: 7N11) (the "Company" or “Palladium One”) is pleased to announce an updated Indicated and Inferred Mineral Resource Estimate (“MRE”) prepared the Company under the supervision of SLR Consulting (Canada) Ltd. (formerly Roscoe, Postle Associates Inc.) disclosed in accordance with National Instrument 43-101 (“NI43-101”) for the 100%-owned Läntinen Koillismaa (“LK”) Project in north-central Finland (Figure 1).

“We are pleased to report important milestones that measurably de-risk our LK PGE-Cu-Ni Project in Finland.  Namely, a) a maiden Mineral Resource Estimate at Kaukua South and Murtolampi which increases the Kaukua Area’s indicated resources tonnes by approximately 250%; b) advanced metallurgical testing conducted by SGS (Lakefield) which demonstrates consistently repeatable metallurgical recoveries; and c) the ability to produce both a high-value copper and nickel concentrate using a conventional flotation recovery process.

These milestones substantially improve the economic potential by confirming scale and by delivering clarity of recovery rates for various rock types. 

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.

While continued exploration in 2022 to increase the size of LK is ongoing, we have accelerated baseline environmental studies and plan to advance a Preliminary Economic Assessment (“PEA”).

The bulk of 2022’s exploration efforts are expected to be in Canada and directed to the award winning Tyko Ni-Cu Project.  Once drill permits are received, we plan to drill test several multi-line VTEM anomalies where highly anomalous soil sample values of copper nickel and cobalt were discovered in 2021. To date, additional drill permits have not been received.” Commented Derrick Weyrauch, President and CEO.“

Highlights

In addition to the Mineral Resource Estimate (“MRE”) which used US$1,700/oz palladium (Table 1a, 2b), a sensitivity analysis was completed with seven optimized open-pit constrained resource estimates, with palladium prices ranging from US$900/oz to US$2,500/oz (Table 2a, 2b).

Mineral Resource Estimate

-          1.1 million ounces Total Precious Metals (Pd+Pt+Au) (“TMP”) (0.89 g/t), 111 Million Pounds Copper   (0.13%), 92 Million Pounds Nickel (0.11%) and 5 million Pounds Cobalt (65 g/t) are classified as Indicated, contained in 38.2 million tonnes (see Table 1b).

-          1.1 million ounces TMP (0.68 g/t), 173 Million Pounds Copper (0.16%), 152 Million Pounds Nickel (0.14%) and 8 million Pounds Cobalt (74 g/t) are classified as Inferred, contained in 49.7 million tonnes (see Table 1b).

-          248% increase in Indicated tonnes and a 14% increase in Inferred tonnes.

-          44% of the MRE is in the Indicated category.

-          A waste to ore ratio (“Strip Ratio”) of 1.48:1 in the Kaukua Area (including Murtolampi) and a 0.58:1 Strip Ratio at Haukiaho.

-          The MRE assumes a Net Smelter Return (“NSR”) cut-off of US$12.50 per tonne, based on a 20,000 tonne per day milling rate.

-          Includes three open-pits in the Kaukua Area (including Murtolampi) and one at Haukiaho, 10-kilometers to the south of Kaukua. 

-          Recovered, and payable metal assumptions are based on the 2022 Phase II Metallurgical Testing Program, and preliminary indicative copper and nickel smelter quotes.

Future Resource Expansion

-          LK remains open for additional resource expansion both along strike and at depth.

• The MRE covers approximately 5 kilometers of the 38-kilometer marginal series contact zone, for which reconnaissance historical drilling indicated mineralization along nearly it’s 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-kilometer Haukiaho Trend.
• Three areas of Target Potential have been defined for near term resource expansion representing an additional 2.4-kilometer of strike length along the favourable marginal series and could add between 21.6 million and 36.0 million tonnes of resource. Refer to Table 3, Figures 4 & 5.

2022 Phase II Metallurgical Testing Program

-          The Phase II Metallurgical Testing Program demonstrates the ability to produce BOTH a high-value copper AND a high-value nickel concentrate (“Con”) utilizing conventional 3-stage flotation. 

-          The Cons were readily and consistently reproduced.

-          Locked Cycle Test results:

• Locked Cycle Bulk Concentrate recoveries: 73.5% Pd, 56.1% Pt, 73.0% Au, 88.6% Cu, 30.3% Ni, and 18.6% Co (Table 5).
• Copper Concentrate:  Grades of 30.0% Cu, 1.43% Ni, 0.1% Co, 38.3 g/t Pd, 13.1 g/t Pt, 11.2 g/t Au representing a value of US$6,300 per tonne of concentrate (Table 6).
• Nickel Concentrate:  Grades of 4.8% Ni, 3.9% Cu, 0.2% Co, 40.8 g/t Pd, 11.0 g/t Pt, 2.9 g/t Au representing a value of US$4,200 per tonne of concentrate.
• Rhodium values up to 1.7 g/t and 1.0 g/t were reported in both the Nickel and Copper Concentrates respectively, while the MRE does not include rhodium values.
• Fortunately, both Cons are high in iron and sulfur and low in MgO, thereby improving marketability.
• A low mass pull of 1.2% was achieved, thereby suggestive of low transportation charges.

Other

-          In aggregate, there is 38 million tonnes of Indicated and 50 million tonnes of inferred in resources, thereby providing the opportunity for a large tonnage long-life mine to be developed.

-          The LK project has excellent infrastructure with paved roads, power, skilled labour and is less than 180 kilometers from the port of Oulu, thereby providing the opportunity for reduced initial capital cost estimates.

Mineral Resource Estimate:

Table 1a. 2022 LK MRE

Table 1b:  2022 LK MRE In-situ contained metal

1. CIM (2014) definitions were followed for Mineral Resources.
2. The Mineral Resources have been reported above a preliminary open pit constraining surface using a Net Smelter Return (NSR) pit discard cut-off of US$12.5/t (which for comparison purposes equates to an approximately 0.65 g/t Palladium Equivalent in-situ cut-off, based on metal prices only).
3. The NSR used for reporting is based on the following:
   1. Long term metal prices of US$ 1,700/oz Pd, US$ 1,100/oz Pt, US$ 1,800/oz Au, US$ 4.25/lb Cu, US$ 8.50/lb Ni and US$ 25/lb Co.
   2. Variable metallurgical recoveries for each metal were used at Kaukua and Murtolampi and fixed recoveries of 79.8% Pd, 80.1% Pt, 65% Au, 89% Cu, 64% Ni and 0% Co at Haukiaho.
   3. Commercial terms for a Cu and Ni concentrate based on indicative quotations from smelters.
4. Total Precious Metals (TPM) equals palladium plus platinum plus gold
5. Bulk densities range between 1.8 and 3.23 t/m3.
6. Numbers may not add up due to rounding.
7. Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
8. The quantity and grade of reported inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.

Palladium Equivalent (PdEq)

Palladium equivalent (“PdEq”) is calculated using US$1,700 per ounce for palladium, US$1,100 per ounce for platinum, US$1,800 per ounce for gold, US$4.25 per pound for copper, US$8.50 per pound for nickel, and $25 per pound cobalt consistent with the calculation used in the Company’s current Mineral Resource Estimate for the LK project. PdEq was used for wireframe construction and metallurgical test work only, and does not include metallurgical recoveries or smelter terms, and was not used for generation of the conceptual pit shells or Mineral Resource reporting. The Mineral Resource tabulation is based on a unit NSR value which includes metal prices, metallurgical recoveries and contract terms for Ni and Cu concentrates.

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https://www.newsfilecorp.com/release/121487/Palladium-One-Announces-Mineral-Resource-Estimate-for-the-LK-PGECuNi-Project

Qualified Person

The Mineral Resource Estimate was prepared by the Company under the supervision of Mr. Sean Horan, P.Geo., Technical Manager of Geology at SLR Consulting Ltd., based in Toronto, Ontario, Canada. Mr. Horan is an Independent Qualified Person as defined by NI 43-101. The Mineral Resource Estimate in this news release has been classified in accordance with CIM Definition Standards on Mineral Resources and Mineral Reserves (May 14, 2014).  Mr. Horan has read and approved the contents of this news release, as it relates to the disclosed Mineral Resource Estimate.

For the purposes of this news release, Mr. Neil Pettigrew, M.Sc., P. Geo., Vice President of Exploration and a director of the Company is the designated non-Independent Qualified Person and has reviewed and approved the scientific and technical information in this news release.

About Palladium One

Palladium One Mining Inc. (TSXV: PDM) is focused on discovering environmentally and socially conscious Metals for Green Transportation. A Canadian mineral exploration and development company, Palladium One is targeting district scale, platinum-group-element (PGE)-copper-nickel deposits in leading mining jurisdictions. Its flagship project is the Läntinen Koillismaa (LK) Project in north-central Finland, which is ranked by the Fraser Institute as one of the world’s top countries for mineral exploration and development. LK is a PGE-copper-nickel project that has existing Mineral Resources. PDM's second project is the 2020 Discovery of the Year Award winning Tyko Project, a high-grade sulphide, copper-nickel project located in Canada. Follow Palladium One on LinkedIn, Twitter, and at www.palladiumoneinc.com.

ON BEHALF OF THE BOARD

“Derrick Weyrauch”

President & CEO, Director

For further information contact:

Derrick Weyrauch, President & CEO

Email:  [email protected]

Palladium One Mining Inc.

Toronto, Canada

Phone: 647-612-6466

E-mail: [email protected]

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