FinancialBuzz.com News Commentary
NEW YORK, Feb. 20, 2020 /PRNewswire/ -- The global precious metals market is complex and its value is dependent on various global and local economic variables. Precious metals are rare in nature and possess unique characteristics such as high conductivity, corrosion resistance, and catalytic capabilities, which make them suitable for various industrial applications. The four major precious metals - gold, silver, platinum, and palladium are also used for investment purposes. According to Grand View Research, the global precious metals market is estimated to witness a substantial growth in coming years. The stable Indian bullion market and stronger global growth are also expected to drive demand for gold jewelry in coming years. On top of that, increasing industrial demand for sliver, specifically from solar energy, is expected to boost the market growth. In the meantime, palladium is widely used for industrial purposes and its demand is directly proportional to growth of automobiles and electronics. Other industrial applications of precious metals include solar and nuclear energy, photography, cutlery, antibiotics, computer parts, oil refining, space travel vehicles, bushings, and decorative. In 2019, the global precious metals market attained a production volume of almost 33,139 MT. In the future, the market is expected to witness a stable growth during the forecast period of 2020-2025, growing at a CAGR of 2.34%. And in total, the precious metal production is projected to reach nearly 39 KMT in 2025, according to Expert Market Research. Palladium One Mining Inc. (OTC: NKORF) (TSX-V: PDM), Platinum Group Metals Ltd. (NYSE: PLG), Ivanhoe Mines Ltd. (OTC: IVPAF), New Gold Inc. (NYSE: NGD), Canadian Palladium Resources Inc. (OTC: DCNNF)
Earlier in 2019, palladium had become the most valuable of the four major precious metals, with an acute shortage driving prices to a new record. According to Bloomberg, the metal is a key component in pollution-control devices for cars and trucks, and the metal's price doubled in little more than a year, making it more expensive than gold. Then, earlier this week, palladium prices broke records once again; This Wednesday, March palladium futures jumped 8.1% on the day, trading at approximately USD 2,504 an ounce. The increase is influenced by the supply-demand outlook, which continued to boost prices to new highs. Spot prices hit record highs of USD 2,590 an ounce earlier in the session. "At the start of the year, we were looking for upside risk for the palladium market, but prices have rallied further than we thought they would. Given how tight the market is, it is likely that we are going to continue to see further upside risk," Standard Chartered precious metals analyst Suki Cooper told Kitco News.
Palladium One Mining Inc. (OTC: NKORF) (TSX-V: PDM) is also listed on the TSX Venture Exchange under the ticker (TSX-V: PDM). Earlier this week, the Company announced that it, "has retained a local diamond drilling contractor, Northdrill Oy, from Rovaniemi, Finland, to conduct a winter drill program at the palladium dominant, Lantinen Koillismaa ("LK") PGE-nickel-copper project. Crews are scheduled to mobilize on or about February 24th and begin drilling immediately thereafter.
'Our primary goal for the current drill program is to upgrade and convert the historical resource estimate at Haukiaho, to a current NI43-101 resource estimate. Adding palladium ounces to our existing palladium resource endowment, at a time when persistent unreconcilable supply deficits exist is needed to help ensure security of supply.
Analysts1 report that in 2019, the palladium supply deficit reached 1,200,000 ounces while automotive demand reached an all-time high of 9,700,000 ounces and total mine supply was only 6,900,000 ounces. Despite lower vehicle production in 2019, the intensifying use of palladium in gas-powered cars in Europe and China has propelled demand to a record level. As an increasing number of vehicles produced meet the China 6 and Euro 6D legislative standards, the 8-year palladium deficit appears likely to continue and increase in 2020,' commented Derrick Weyrauch, President and CEO.
On February 13, 2020, the Finish Mining Authority approved three Enforcement Decisions (see news release February 13, 2020) which allow the Company to carry out all planned exploration activities, including drilling, irrespective of any appeals process. The three approvals are in respect of Kaukua zones of the LK project.
The planned drill program consists of up to 5,000m of diamond drilling and is to start at the Kaukau deposit and then move to the Haukiako zone, where a historic resource estimate exists. (see new release January 9, 2019). In 2011 Haukiaho was drilled at very wide spacing, the Company plans to infill and expand this drilling. Haukiaho represents the main focus of the current program and drilling will target higher grade zones delineated by the current IP survey program.
Haukiaho is known to host higher grades pods, with elevated copper and nickel values, historic drill intercepts include 0.97g/t PGE over 61.0 meters (0.56g/t Pd, 0.22g/t Pt, 0.20g/t Au, 0.32% Cu, 0.23% Ni in HAU12-018).
The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo, Vice President of Exploration and a director of the Company and the Qualified Person as defined by National Instrument 43-101.
About Palladium One: Palladium One Mining Inc. is a palladium dominant, PGE, nickel, copper exploration and development company. Its assets consist of the Lantinen Koillismaa ("LK") PGE-Cu-Ni project, located in north-central Finland and the Tyko Ni-Cu-PGE property, near Marathon, Ontario, Canada.
The Kaukua deposit of the LK project hosts 635,600 Pd_Eq ounces of Indicated Resources grading 1.80 g/t Pd_Eq* ("palladium equivalent") contained in 11 million tonnes (@ 0.81g/t Pd, 0.27g/t Pt, 0.09g/t Au, (1.17g/t PGE), 0.15% Cu & 0.09% Ni), and 525,800 Pd_Eq ounces of Inferred Resources grading 1.50 g/t Pd_Eq contained in 11 million tonnes (@ 0.64g/t Pd, 0.20g/t Pt, 0.08g/t Au (0.92g/t PGE), 0.13% Cu, & 0.08% Ni), (see press release September 9, 2019). Kaukua is open for expansion, while the Kaukua South, Murtolampi and Haukiaho mineralized zones require systematic exploration via diamond drilling to follow up mineralized drill intercepts.
*Pd_Eq is calculated using the following metal prices (in USD) of $1,100/oz for Pd, $950/oz for Pt, $1,300/oz for Au, $6,614/t for Cu and $15,432/t for Ni."
For our latest "Buzz on the Street" Show featuring Palladium One Mining Inc. recent corporate news, please head over to: https://www.youtube.com/watch?v=V9lrRfqkSOY
Platinum Group Metals Ltd. (NYSE: PLG) reported back in September positive results from an Independent Definitive Feasibility Study ("DFS") on the Waterberg Project (the "Project") completed by international and South African engineering firms Stantec Consulting International LLC ("Stantec") and DRA Projects SA (Pty) Ltd. ("DRA") along with a large team of specialists. The DFS was managed by Waterberg JV Resources (Pty) Ltd. ("Waterberg JV") representing the owners of Platinum Group, Impala Platinum Holdings Ltd. ("Implats"), Japan Oil, Gas and Metals National Corporation ("JOGMEC"), Hanwa Co. Ltd. ("Hanwa") and Mnombo Wethu Consultants (Pty) Ltd. ("Mnombo"). All of the partners contributed actively to the Project through the technical committee and the Board of Waterberg JV. R. Michael Jones, CEO and co-founder of Platinum Group said, "The DFS provides a clear outline of the world-class nature of the Waterberg Palladium deposit and concludes that it can be one of the largest fully mechanised, low cost platinum group metals mines in the world. A large global team of approximately 100 independent professionals and specialists as well as excellent participation from our partner Implats, have contributed to an optimized mining plan that reduced capital from the earlier plan and significantly increased the Mineral Reserves for a 45 year life, 420,000 4E ounce per year steady state mine plan".
Ivanhoe Mines Ltd. (OTCQX: IVPAF) Co-Chairmen Robert Friedland and Yufeng "Miles" Sun announced this January that the company's South African subsidiary, Ivanplats, is fast-tracking a feasibility study on a smaller-scale, early-stage development plan using Shaft 1 as a production shaft at its Platreef palladium, platinum, nickel, copper, gold and rhodium mining license, located on the Northern Limb of the Bushveld Complex in South Africa's Limpopo province. Palladium prices continue to surge to record highs, topping US$2,100 an ounce as stricter air-quality rules boost demand for the metal used in vehicle pollution-control devices. Platreef has an estimated 26.8 million ounces of palladium in current Indicated Mineral Resources, and an additional 43.0 million ounces in current Inferred Mineral Resources, at a 2.0 g/t 3PE+gold cut-off.
New Gold Inc. (NYSE: NGD) reported on February 13th, results of the updated Life of Mine plans for the Rainy River and New Mines. A National Instrument 43-101 ("NI 43-101") Technical Report for each operation will be filed within 45 days. The Company is also providing updated Mineral Reserves and Resources as of December 31, 2019. The Rainy River is a gold-silver mine located in Ontario. Over the past year, the Company has undertaken a comprehensive mine optimization study for the Rainy River Mine that included a review of alternative open pit and underground mining scenarios with the overall objective of improving the return of investment to secure optimal profitability. "Over the past number of months we have evaluated numerous scenarios for the Rainy River Mine and are pleased to release an updated life of mine plan that delivers a solid open pit and underground mine plan that positions the operation for profitability and free cash flow generation beginning in Q4 2020 that continues over the balance of the mine life." said Renaud Adams, CEO.
Canadian Palladium Resources Inc. (OTCQB: DCNNF) announced early last year that its wholly-owned subsidiary, East Bull Resources Inc. has entered into an option agreement (the "Agreement") with Pavey Ark Minerals Inc. ("Pavey Ark"), to acquire a 100% interest in the East Bull palladium property in the Sudbury Mining Division (Ontario) (the "Property"). P&E Mining Consultants Inc. of Brampton, Ontario has prepared a NI 43-101 compliant report on the Property dated April 5, 2018 (the "43-101 Report"). The NI 43-101 Report references a pit-constrained inferred resource of 11.1 million tonnes of 1.46 grams per tonne (523,000 ounces) palladium equivalent. The 43-101 Report recommends an exploration program to extend and define the known mineralization. The Company has not undertaken any independent detailed investigation of the information contained in NI 43-101 Report in order to verify the accuracy of the information. However, the Company believes that following the recommended exploration work program will increase the current resource and help to define the extent of the palladium mineralization. Mr. Wayne Tisdale, CEO of the Company reports: "We are pleased to have closed this transaction to acquire a palladium resource located within 70 kilometres of Sudbury, Ontario. By pursuing the recommended work program referenced in the 43-101, this resource appears to have excellent potential to add palladium ounces to the current estimate. This palladium asset perfectly complements our current Tisova copper-cobalt project. At 21C Metals, we are actively pursuing the metals required for current production demand (palladium) while also preparing for the ever-increasing demand for cobalt and copper. We call our strategy Metals for Today and Tomorrow."
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