New Palladium Powerplay in Northern Ontario

When Stockhouse writers and editors see value and opportunity in capital markets, we report it. Vigorously. Whether it’s an emerging sector or a tried & true blue chip stock, the Stockhouse team is on top of it, providing our audience with the facts, figures and analysis you need to make informed investment decisions. And we’ve been doing for more than 20 years.

We also take note of developing market trends and make it part of our due diligence to report on it accurately and in a timely fashion. And right now, we’ve seen increasing reader interest in PGMs – or the Platinum-Group Metals.

Last week, we reported on a record all-time high price for palladium, as the auto-catalyst metal breached the US$1,900 mark early Monday, taking its year-to-date tally to a gain of roughly 60 percent.

Futures prices have set new records every day since December 4th, on an intraday and settlement basis, tracking data that go back to November 1984, according to Dow Jones Market Data. Year to date, prices based on the most-active contract trade roughly 60 percent higher.

According to South Africa’s Independent Online on Thursday, widespread power outages in South Africa have led to a decline in PGM production in the nation. South Africa’s mining production fell for a third month in a row, down 2.9 percent year on year in October, with PGM production down by 4.8 percent.

The good news for investors is that the Canadian mining sector is looking to pick up the slack. And one junior explorer that’s made a recent 43-101 report on its latest assay results is Champion Bear Resources (TSX-V.CBA, Forum). The Calgary-based mineral exploration and development company is focused exclusively on the historically prospective regions of Northern Ontario. The company’s primary targets are PGMs, gold, copper, poly-metallics, and other trace minerals. The Company says its aim is to “create shareholder value through discovery, joint venture, and acquisition.”

Champion Bear’s cornerstone property is their 100 percent-owned Eagle Rock Project – located 60 kilometres south of Dryden in Northwestern Ontario. The large property – 20 x 6 kilometres) overlies the large Entwine Lake Intrusion which hosts several sulphide showings including the Campbell Cu-PGE Zone.

In its most recent drilling program, conducted in early 2019, Champion Bear encountered PGE and Cu in every one of its 9 additional holes.

A summary of some of the more significant and notable 2019 intersections are:

• Drill hole ER19-24 intersected 7.5 m of 0.548 g/t palladium, 0.323 g/t platinum, 0.250 g/t gold and 0.40 % copper from 101.0 m to 108.5 m.
• Drill hole ER19-25 intersected 10.0 m of 0.645 g/t palladium, 0.398 g/t platinum, 0.325 g/t gold and 0.45 % copper from 75.0 m to 85.0 m, including three 2 m-long intervals with over 0.9 g/t palladium.
• Drill hole ER19-28 intersected 34.0 m of 0.465 g/t palladium, 0.281 g/t platinum, 0.201 gg/t gold and 0.3 % copper from 97.0 m to 131.0 m, including four 2 m-long intervals with over 0.7 g/t palladium.
• Drill hole ER19-29 intersected 56.0 m of 0.488 g/t palladium, 0.272 g/t platinum, 0.188 g/t gold and 0.42 % copper from 46.0 m to 102.0 m, including six 2 m-long intervals with over 0.7 g/t palladium.
• Drill hole ER19-30 intersected eight m of 0.511 g/t palladium, 0.306 g/t platinum, 236 g/t gold and 0.42 % copper from 91.0 m to 99.0 m, including one 2 m-long interval with over 0.8 g/t palladium.

For metals and mining investors these are intriguingly positive results.

The Campbell Zone is a continuous, predictable PGE reef-type horizon exposed at surface for > 1km, is defined by drilling (75 holes) to a vertical depth of 200m, and has an average width of 8m. The Zone is characterized as a low-sulphide (typically < 5% chalcopyrite + pyrrhotite), high-metal tenor horizon with typical grades of >1g/t Au+Pt+Pd and 0.5% Cu. Campbell will be evaluated for its potential as a viable open pit operation.


(Click image to enlarge)

Drilling at the Campbell Zone successfully expanded the sulphide mineralization along strike to the northwest and down-dip, with intersections of, for example, 1.70 g/t Au+Pt+Pd over 13.0 metres (hole ER09-19); in addition, drilling filled critical gaps in the key central area of the Zone with intersections of, for example 1.30g/t Au+Pt+Pd over 34.0m (hole ER09-21).

Exploration plans are to continue the drill program to define the nature and extent of the Campbell Zone in anticipation of an evaluation to determine its Open Pit potential. An HRAM Survey (high-resolution airborne magnetic) is planned in conjunction with prospecting and geological surveys are planned. This work will effectively map the extent of the Campbell Zone trend and associated sulphide occurrences as well as identify new stratigraphic horizons and addition mineralized showings.

In conversation with Stockhouse Editorial, Richard D. Kantor, Champion Bear’s Chairman and President, talked about the Company’s most recent results and historical significance of the mining jurisdiction in and around the Eagle Rock Project:

“It’s a very high-grade minerals claim at Eagle Rock And it’s not just palladium. There’s a lot of copper, gold and platinum in this first round of assay results. (Geologist) Todd McCracken has reviewed and is responsible for the technical content of the news release and he says it’s some of the best results for palladium he’s ever seen. We can’t wait for round two in the New Year.”

As the PGM market continues to heat up, so does the M&A action. In October 2019, South African base metal heavyweight Impala Platinum Holdings (OTC:IMPUF) has made its move on northwestern Ontario miner North American Palladium (TSX:PDL) on a proposed share and cash deal worth CDN$1 billion.

Going into 2020, analysts are confident the metal will keep climbing to new highs, notwithstanding some natural pullbacks that follow rallies. That being said, there is still plenty of shine and reason for optimism in the PGM marketplace moving forward.