Tag: Canadian Palladium Resources Inc.

BULL announced an updated resource estimate for its East Bull Pd deposit located near Sudbury, ON. This is the first update since the 2019 resource, and following a 20,000m drill program. Resources grew from 523k oz to over 1M oz PdEq.While we had expected a somewhat higher estimate, we cannot complain given that we now have >50% indicated and keeping in mind that Pd prices are over twice that of previous studies, while the other commodities didn’t rise as much. This had significant impact on Pd equivalents, effectively muting much value of the other elements. Investors must consider both that PdEq resources nearly doubled, and Pd prices over doubled, resulting in an in-situ value that increased almost four-fold. Grades fell 34% by using lower cut-off grades, but with the new feeder zone discoveries, we believe that further exploration will help increase average grades.

Canadian Palladium announced assays from seven holes from its 20,000m drill program at its 100%-owned East Bull Palladium (EBP) deposit located 90km west of Sudbury, ON. Drilling encountered the highest ever grades intersected at the project of up to 18.76 g/t PdEq over 1m, in the newly recognized GAP feeder zone. We believe the encouraging grades, expansion of known and addition of new mineralized zones, including a couple of feeder structures, will ultimately expand resources from 523k oz to approach 2M oz PdEq. We don’t believe BULL is getting full credit for its existing mineral resource (trading at about half of its peers), let alone the fact that resources may near-quadruple in short order. This provides ample room for the stock to re-rate following the pending resource upgrade.

Canadian Palladium announced six holes of assays from the ongoing 15,000m drill program at its 100%-owned East Bull Palladium (EBP) deposit located 90km west of Sudbury, ON. We continue to see multiple wide intersections of palladium mineralization being identified. The new EOH Zone (previous known as the mineralized feeder dyke) has been confirmed and expanded, and Garden Zone has been extended along strike and down dip. This discovery of a thick, high grade feeder zone is relatively new and might ultimately help surpass its resource targets. We believe that Canadian Palladium is trading somewhat inline with its existing resource and not getting much credit for its potential expansion as it nears a resource update later this fall.

Canadian Palladium announced assay results from another three holes at its 100%-owned East Bull Palladium (EBP) deposit located 90km west of Sudbury, ON. We view these results very positively as they have accomplished two things: 1) extended the main Garden/Valhalla zone by 250m along strike to the west; and 2) intersected a new zone located 50m below the Garden zone, now interpreted to be a feeder dyke for the East Bull intrusion. With Pd and Rh prices hitting all time highs, and aggressive exploration quickly expanding the size of the zone, we believe that investors should be paying attention to this overlooked potential project.