GT Resources Inc (NKORF)

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Palladium One Drilling at Kaukua South Extends Mineralization Into “Gap Zone”

March 11, 2021


March 11, 2021 – Toronto, Ontario – Infill drilling spaced at 100-meter grid spacing has increased continuous mineralization to over 1,300 meters and into the 'gap zone', thereby supporting the thesis of potentially more open-pit resources at the Kaukua South zone of the Läntinen Koillismaa ("LK") PGE-Ni-Cu project in Finland said Palladium One Mining Inc. ("Palladium One" or the "Company") TSXV: PDM, FRA: 7N11, OTC: $NKORF today. These interim results are from the 17,500-meter, Phase II Resource Definition drill program at Kaukua South.

Derrick Weyrauch, President and CEO of Palladium One said, "Drilling at Kaukua South has successfully extended known mineralization to the east and west of hole LK20-016 and into the 'gap zone' where the Induced Polarization ("IP") chargeability anomaly was weaker (see - hole LK20-036 and LK20-044 in Figure 1). These results imply that the 'gap zone' could host more mineralization than previously thought. Interim results demonstrate continuity now over 1,300 meters. As a result of continued success, we have accelerated our plans and commenced a new 50-line kilometer IP survey to extend the Kaukua South strike length, which we believe has the potential to be over seven kilometers in length."

Highlights

Infill drilling continues to demonstrate continuity of near surface open pit grades and widths.

Core zones up to 9.0 meters grading 3.1 g/t Palladium equivalent ("Pd_Eq.") within 32.7 meters grading 2.0 g/t Pd_Eq. in hole LK21-034.

First drilling in the "gap zone" returns up to 17.0 meters grading 1.38 g/t Pd_Eq. in hole LK21-044 demonstrating continuity of the mineralization in the Kaukua South IP anomaly.

A new IP survey has been initiated to extend the Kaukua South zone from a drill defined four-kilometer strike length to potentially over seven kilometers.

34 holes totaling 6,404 meters have been drilled to date on Kaukua South as part of the 17,500-meter Phase II program.

Kaukua South Infill Drilling

Kaukua South infill drilling continues to demonstrate consistent near surface open pit grades and widths. A total of 13 holes from the Phase II drill program on Kaukua South have now been released with intersections of up to 53 meters at 2.1 g/t Pd_Eq*, and a core interval of up to 25 meters at 2.9 g/t Pd_Eq. in hole LK21-028 (see press release January 18, 2021). These 13 holes cover approximately 1.3 kilometers of the Kaukua South Zone, and have returned very similar widths and grades to those in the Kaukua Open Pit resource. (Figure 1 and 2).

Of particular interested is holes LK20-036 and LK20-044 (Figure 2). These represent the first drill holes drilled in the central area of the Kaukua South chargeability anomaly. This central or "gap zone "is approximately a one-kilometer long zone of lower chargeability. The results from these two holes, plus visual results from three additional holes with assays pending, prove that palladium-rich mineralization does extend into this gap zone, which significant increases the potential size of a future Kaukua South resource.

New IP Survey

IP has proven to be highly successful at outlining palladium-rich disseminated copper-nickel sulphide mineralization on the LK Project, the discovery of Kaukua South in an overburden covered area with no previous drilling was a direct result of the Company's 2020 IP survey.

The success of the Phase II drill program has prompted to the Company to accelerate plans for an additional 50-line kilometre IP survey and a 640-line kilometer drone magnetic survey. The prime objective is to extend the Kaukua South IP chargeability anomaly at least two kilometers to the east onto the Kaukuanjarvi Permit Application area. Regional airborne magnetic data strongly suggests that favourable Kaukua-style mafic-ultramafic hosts rocks extend into this area.

Additionally, the Company believes there is potential to extend Kaukua South at least one kilometer west of the existing 2020 survey grid. The Company plans to re-survey and expand the historic 2008 IP survey which encountered several technical challenges, resulting in amongst other issues, detecting only half of the mineralization associated with the Kaukua Open Pit Resource (Figure 1).

Taken together these two new IP grids could potentially extend the Kaukua South IP chargeability anomaly to over seven kilometers.

Figure 1. Greater Kaukua area plan map, showingcurrent NI 43-101 Kaukua Deposit conceptual pit outline (dashed yellow), Kaukua South and Murtolampi IP chargeability anomalies, and Palladium One drill hole locations. Holes labels in red form part of this release.



Figure 2. Kaukua South Long section looking north



Continues here>>>> https://www.palladiumoneinc.com/news/2021/palladium-one-drilling-at-kaukua-south-extends-mineralization-into-gap-zone


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