Ontario palladium developer Canadian Palladium Resources (CSE:BULL, OTC: DCNNF) announced that drilling has commenced at the company’s flagship East Bull Palladium Project located 90 kilometers west of Sudbury,Ontario. Sudbury is well known as one of the most prolific platinum-group metals mining districts in the world. Canadian Palladium (“BULL”) is committed to drilling roughly 10,000 meters over 30-40 holes at East Bull over the next few months with an objective of expanding and upgrading the existing 43-101 compliant 523,000 ounce palladium-equivalent inferred resource.
Historical drilling at East Bull was relatively shallow with no holes going deeper than 150 meters. BULL intends to drill many holes at a depth greater than 300 meters in order to expand the resource at depth. BULL has started drilling using one rig, and a second will be added once the logistics are settled and drill sites have had snow removed. The first drill is starting in the western end of the Valhalla zone and will progress eastward infilling gaps and drilling down dip. The plan is to establish a full-service camp within two kilometers of the project when the second drill is delivered to site.
There are two keys that are driving the potential for significantly improved economics at East Bull: 1. A much higher palladium price than what was used in the existing resource report (US$914 vs. US$2250 today) 2. A larger and upgraded resource that BULL hopes to outline with the 10,000 meter drill program that is underway.
The drill crew was mobilized quickly and BULL can drill year-round at East Bull, the project is also accessible by a numbered highway. After speaking with BULL CEO Wayne Tisdale yesterday he made a point to emphasize that they expect to have a very fast turnaround time with assays and the company expects to have first assays back and core on display in time for PDAC in early March.
Technically speaking the BULL chart has formed a very clean bullish pennant pattern:
A daily close above the C$.21 level would target an additional 30%-50% of near term upside. The relative strength is also in bullish territory after cooling off a bit in the last couple weeks.
Disclosure: Author is long BULL.CA shares at the time of publishing and may choose to buy or sell at any time without notice.
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