2020 12 07 - PDM Corporate Presentation v1 · 2020. 12. 7. · 6wduwhg zlwk d xqlw ri 7hfn wkhq...

PALLADIUM ONE MINING INC. TSX-V:PDM FRA: 7N11 1

DEFINING METALS FOR CLEAN AIR

Corporate Presentation – December 7, 2020

TSX-V: PDM FRA: 7N11 OTC: NKORFPalladiumoneinc.com


This presentation contains certain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from Palladium One Mining Inc’s (the “Company”) expectations and projections. The TSXV has neither approved nor disapproved the information contained in this presentation. Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", “could”, "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.

Data and technical information in this document is extracted from the NI 43-101 technical report entitled ‘Technical Report for the Kaukua Deposit, Läntinen Koillismaa Project, Finland “ prepared for Palladium One Mining Inc.’, written by Mining Plus, dated September 2019 and historical data and technical information is extracted from the September 19, 2013 NI43-101 technical report prepared for Finore Mining Inc for the Läntinen Koillismaa Project, Finland , also written by Mining Plus. Historical resources have not been verified by the Company and are not current, therefore reliance should not be placed on such historical information.

Mr. Neil Pettigrew, P.Geo,. is the Qualified Person as defined by National Instrument 43-101, is the Vice President of Exploration and a director of the Company and has reviewed and approved the technical information in this document.

Forward Looking Statements


An Exploration & Development Company

Overview(all prices in C$ unless noted)

Market capitalization $39M

Cash $7.7M

ITM Warrants $1.8M

Share price $0.22

Shares o/s 179M

Fully diluted 201M

Avg. daily volume (Q4) 3.1M shares

Stakeholders(As at December 7, 2020)

Eric Sprott 20.3%

Mgmt. & Directors 1.2%

Analyst coverage:

Noble Capital Markets LLC

COVID


Derrick Weyrauch, CPA CAPresident & CEO, Director

• 30+ years of international capital markets experience (Canadian and US listed issuers)• Non-executive director at Cabral Gold Inc.(TSXV: CBR)

Dr. Peter C. LightfootDirector

• Globally recognized expert on magmatic precious metal and nickel-cobalt-copper ore deposits.• Former Principal Geologist – Nickel Sulphide Global Project Generation and Chief Geologist – Base Metals at

Inco/Vale, was responsible for Voisey’s Bay, Sudbury and Carajas.

Lawrence RoulstonDirector

• 40 years experience in the mining industry• Investment management/analyst experience and former newsletter editor• Started with a unit of Teck, then worked as an executive with mid-sized and junior mining sector companies

Neil Pettigrew, M.Sc., P.GeoVice President Exploration, Director

• Over 20 years of experience in the mineral exploration industry• Expertise in Ni-Cu-PGE, gold, VMS, geochemistry and structural geology • Founding partner of Fladgate Exploration Consulting Corporation and previously Senior Precambrian

Geoscientist with the Ontario Geological Survey.

Gordon MarrsMetallurgical Engineering

• Globally recognized expert processing magmatic and volcanogenic sulphide ores.• Currently consulting metallurgist at XPS Expert Process Solutions, Glencore Canada.• Former Director, Strategy and Sustainable Development Xstrata Nickel and former Manager, Mill and Central

Services at Falconbridge and former Processing QP for North American Palladium.

Steven VelimirovicCorporate Development

• Over 20 years of Investment Banking experience and has advised on many prominent M&A, equity and debt transactions, totally over US$50 billion, in the mining industry

• Led various strategic advisory initiatives in major mineral resource markets globally• Currently, Managing Director at Qubex Capital Inc, formerly worked at BMO Capital Markets, UBS and Société

Générale.

Management, Directors & Advisors


The Opportunity – 100% Owned, Best-In-Class Jurisdictions

Palladium – more valuable than gold @ ~US$2,300/oz

8 year supply deficit, with inelastic supply and inelastic demand

Industry consolidation underway

Finland is a member of the EU and holds #1 global ranking for Mining Policy

Existing NI 43-101 open pit constrained resource underpins value proposition

Credible resource growth, target over 100M tonnes

Fully funded drilling program underway

Creating value via the drill-bit

Palladium-Platinum-Gold-Copper-Nickel, projects in Finland and Canada

“Our flagship project is the palladium dominant, Läntinen Koillismaa (“LK”) PGE-Cu-Ni project, located in north-central Finland”


LK Project

• Mineralization occurring close to surface provides for more open-pit resources

• Induced Polarization (“IP”) proven very reliable in identifying PGE-Cu-Ni mineralization


Largest Palladium Dominant Project in 1st Class Jurisdiction?

*Palladium Equivalent “Pd_Eq” is calculated using metal prices (in USD) of $1,100/oz for palladium, $950/oz for platinum, $1,300/oz for gold, $6,614/t for copper and $15,432/t for nickel as used in the Company’s 2019, 43-101 mineral resource estimate on the Kaukua Deposit (see press release September 9, 2019).

New Discoveries

Near surface, continuity, mineralized strike length 4,600 m

LK20-016

- 63 m @ 3.52 g/t Pd_Eq (2.6 g/t PGE)

- Includes 18.5 m @ 4.6 g/t Pd_Eq (3.55 g/t PGE)

- Near surface

- 1,350, east of hole 35

LK20-019 ((up dip)

- Started in mineralization

- -35 m @ 2.76 g/t Pd_Eq (2 g/t PGE)

Exploration Target 100 Million Tonnes


Proven Targeting Methodology

Exploration Permits outlined in yellow, reservations in red, 2020 geophysics program (IP and Mag) in blue

• Induced Polarization (“IP”) proven very reliable in identifying PGE-Cu-Ni mineralization• High-resolution magnetic (“Mag”) for structural interpretation and outlining peridotitic rocks, commonly hosting PGE


Pit Constrained Resource Estimate

635,600 Pd_Eq ounces of Indicated Resources (1.80 g/t Pd_Eq, 11 million tonnes)

525,800 Pd_Eq ounces of Inferred Resources (1.50 g/t Pd_Eq, 11 million tonnes)

Whittle pit optimization assumptions:

Element UnitsPrice

Assumption (US$)

Palladium per oz $1,100

Platinum per oz $950Gold per oz $1,300

Copper per lbs $3.00

Nickel per lbs $7.00

ValueMining Recovery 95%Mining Dilution 5%Currency USDRoyalties 1% NSRProcessing cost (incl. G&A)

$9.75/t

Mining cost $2.20/tCut-off grade Pd 0.3Overall Wall Angle 54.96

3:1 waste: ore

Low cost open pit

mining potential

David Davidson, Senior Analyst, Paradigm Capital Inc. July 16, 2020

“We see a range of US$30–$70/oz used to value various precious metal and PGMs across the industry…our base-case assumption uses $50/oz to reflect the strength in palladium and gold pricing.”

(Source: Clean Air Metals Inc. Initiation Report)


Peer Grade Comparison

Source: Company disclosures and internal calculations as at May 2020


LK Project: Metallurgy – initial results

• Disseminated, palladium-rich, high tenor sulphide• At 100% sulphide (mean):

• ~84 g/t PGE (including ~58 g/t Pd), ~13% Cu and ~10% Ni

• Preliminary metallurgical work indicates: • Saleable concentrate by bulk floatation • Final concentrate grading 11.4% Cu, 4.5% Ni, 36.3 g/t Pd, 4.6 g/t Au and 7.8

g/t Pt• Final concentrate grades of 16-17% Cu+Ni have been obtained.

• Unoptimized recoveries demonstrate scope for improvement:• Rougher: 86% Pd, 72% Pt, 85% Au, 95% Cu and 56% Ni • Cleaner: 73% Pd, 56% Pt, 78% Au 91% Cu and 48% Ni

• MgO below 4%, no smelter penalty

• 1.6% final concentrate mass pull = low shipping cost to smelter

Metallurgical testing conducted by SGS Canada Inc.


LK Disseminated & KS Conduit Projects: Central Finland

KOSTONJÄRVI (“KS”) FEEDER/CONDUIT

• 100% interest, royalty-free, no holding costs.

• ~20 km strike length (20,000 hectares) of prospective feeder dyke.

• Regional scale gravity and magnetic geophysical anomaly.

• High-grade massive sulphide potential.

• PGE-Cu-Ni magma conduit system target

• Similarities to Noril’sk (Nornickel - Russia) and Voicey’s Bay (Vale - Canada)

LÄNTINEN KOILLISMAA (“LK”)

• 100% interest.

• ~38 km (3,674 hectares) of favourablebasal contact.

• Low-cost open pit mining potential.

• NI 43-101 open pit constrained resource completed on the Kaukua zone deposit.

• High-tenor, palladium dominated sulphide (3Pd:1Pt)

• Disseminated intrusive marginal style mineralization.

• Similarities to Platreef type deposits of the Bushveld Igneous Complex in South Africa


KS Feeder Project: High-Grade Massive Sulphide

• 100% owned, district-scale, target is high-grade massive PGE-Cu-Ni sulphides.

• Feeder dyke target linked to LK project (similarities to Noril’sk & Voisey’s Bay)

• Regional-scale gravity, magnetic and seismic surveys demonstrate dyke.

• Anomalous (>100ppb) PGE bearing gabbroic boulders (source yet to found).


KS Feeder Project: Gravity and Magnetic Anomaly

• 20,000-hectare.

• No holding costs.

• Few private landowners.

• High tenor LK mineralization suggests massive sulphides could be very high value

• At 100% sulphide, LK hosts ~58 g/t palladium, ~84 g/t total-precious-metals (TPM) and 13% copper.


KS Project: 3D Model of the Buried Feeder Dyke

Voisey’s Bay Long Section


Key Takeaways

PALLADIUM MARKET FUNDAMENTALS• Inelastic supply versus inelastic demand• Environmental regulations demand greater consumption • 8-year supply deficit – 80% of supply is a by-product

LACK OF INVESTMENT ALTERNATIVES• Very few advanced palladium exploration projects• Existing resources underpin value proposition

REALISTIC RESOURCE EXPANSION• Credible resource growth using proved methodology• Wide mineralized intercepts confirmed target extensions

TEAM• Brings exploration and capital markets experience to unlock value for

shareholders

FINLAND ADVANTAGE• Top mining jurisdiction (Fraser Institute)• 3rd largest supplier of platinum & palladium • Excellent infrastructure• Strong mining culture (e.g. Boliden, Glencore, Agnico, Anglo, First Quantum)• Major recent, massive sulphide, discoveries (e.g. Sakatti)• Proximity to major smelters in Finland and Sweden


TYKO PROJECT

TYKO Ni PROJECT

Canadian Properties: Ontario, Canada

DISRAELI PGE

PROJECT


An Archean mafic-ultramafic intrusion

located in the mining friendly province

of Ontario, Canada.

• Located 55 km northeast of the

Marathon deposit which hosts a M&I

resource of:

• 3.0 million ounces of Pd @ 0.78g/t,

0.9 million ounces of Pt @ 0.23g/t and

618 million lb of Cu @ 0.24%

• Hosted by metamorphosed gabbro and

pyroxenite which has been intruded by

later granitoid rocks.

• Abundant rip-up clasts indicative of an

active feeder-type system.

• Nickel-rich with an average Ni:Cu ratio

of ~2:1 and a Pt:Pd ratio of ~1:1

• Massive magmatic sulphides (Smoke

Lake zone), semi-massive sulphide

breccia and disseminated to blebby

semi-massive sulphide (RJ and Tyko

zone).

Tyko Nickel Property: Ontario, Canada

The sulphide tenor of mineralization is very high.

• Massive magmatic sulphide assays, from Dec 2020 drilling, not yet

available.

• Indicated tenors in 100% sulphide average 8.6% Ni, 4.6% Cu, and 3.3g/t

PGE at the RJ Zone and 16.3% Ni, 8.70% Cu, and 12.8g/t PGE at the

Tyko Zone.

• The high tenor of the sulphide suggests a high value flotation

concentrate could be produced.


Tyko Nickel Property: Drilling Underway

• At less than 30 meters true-depth, a 4-meter and a 2-meter wide drill intercept of massive magmatic sulphide

• Massive magmatic sulphides at Smoke Lake (December 2020 - drill hole TK-20-016)

• First two drill holes at Smoke Lake (December 2020 -drill hole TK-20-015 and 016)


Appendix

I. Air quality regulations and mine supply deficit

II. PGE industry consolidation

III. Regional data (Fennoscandian Shield)

IV. LK project geologic data

V. Canadian nickel-copper-PGE projects (Disraeli)

VI. Other


Palladium Market Overview

38%

41%

21%

Significant Jurisdictional Risk:Supply by Region

South Africa Russia Rest of World

10%

41%

49%

Major Constraint to Increase Supply:Mine Supply

Primary mine productionPlatinum by-productNickel by-product

83%

1%

15% 1%

3-7 grams of palladium per vehicle:Gross Demand

Autocatalyst JewelleryIndustrial Investment

21%

10%

22%

28%

19%

Growing Demand from China;Regional Demand

Europe Japan North AmericaChina Rest of WorldSource: Johnson Matthey – PGM Market Report February 2020


Palladium & Environmental Benefits

Cleaner Air - Reduced Hydrocarbons

• Critical in reducing harmful emissions

• Stricter environmental standards = increasing demand

• Diesel being phased out for gas = increasing demand

• Unique properties better suited to meet stricter emission standards.

• Palladium is more durable and longer lasting.

• Real Driving Emissions (RDE) testing: palladium performs much better than platinum.

Evolving Emission LegislationLIGHT DUTY

3-stage auto-catalyst

Limited scope – increasing demand

Eight-year supply deficit

Strategic reserves depleted

ETF holdings depleted

Limited new supply

94% (9.7M oz) used inauto-catalysts (2019)

6.9M oz global mine supply (2019)

COVID-19 demand decrease offset by mine closures, reduced production


Limited Investment Opportunities

Recent Transactions

Top 5 Producers

• 85% of global PGE production

• Market capitalization: ~US$80 billion

Exploration and Development Companies

• 80% of industry dominated by South Africa and Russia supply

• Very few advanced exploration or early stage developers in top

ranked mining jurisdictions

Date Buyer Target Price

(USDmm)

Pd $/oz b/f announcement

(USD/oz)

% of trailing 6 month vs

SpotOct-19 Impala NAP 750$ 1,463$ 61%Jan-18 CD Capital Suhanko 40$ 973$ 41%Dec-17 Sibanye Lonmin 286$ 928$ 39%Dec-16 Sibanye Stillwater 2,203$ 666$ 28%

Pd $/oz 23-Oct-20 $2,399


Finland: Elephant Country Geology

• The Fennoscandia shield hosts a wealth of Cu-Ni-PGE deposits

• Includes world class deposits such as Pechenga (nickel) and Suhanko(palladium)

Koillismaa Complex including the LK & KS Projects


LK Project: Open Pit Disseminated Sulphide

Hosted by the laterally extensive

basal phase of Koillismaa Complex

Post intrusion deformation has

extensively exposed favourable

basal phase at surface

High-tenor, palladium dominated

sulphide (3Pd:1Pt)

Cross section of the original sheet-like Koillismaa Intrusion with current erosion level of the blocks and two possible scenarios explaining the present intrusion structure: tensional (A) and compressional (B). Modified from Alapieti & Lahtinen (1984) and Karinen (1998). Abbreviations: LS = Layered Series, MS = Marginal Series (Basal Phase)


LK Project: Long Sec., Drill Hole LK20-006 and LK20-007

LK20-018, 017 and 022 visual sulfide percentagesLK20-006, discovery hole, 180 meters east of nearest historic drill hole.

Kaukua South Long section showing the greater than 1% magmatic sulphide isoshell derived from visual inspection of down hole percent sulfide from drill logs. Resumed Phase I diamond drill holes are labelled in red.


LK Project: Murtolampi Zone, Drill Hole LK20-012


2020 LK Project Drill Results

Zone HoleFrom (m) To (m)

Width (m)

Pd_Eq g/t*

PGE g/t (Pd+Pt+Au) Pd g/t Pt g/t Au g/t Cu % Ni %

Kaukua South LK20-006* 43.8 210.5 166.7 1.16 0.58 0.39 0.14 0.05 0.09 0.10

Upper Zone 43.8 62.0 18.3 1.27 0.33 0.21 0.05 0.07 0.13 0.16

Core Zone 95.0 158.4 63.4 1.88 1.06 0.72 0.26 0.08 0.13 0.14

Inc. 95.0 116.5 21.6 2.36 1.25 0.83 0.31 0.11 0.18 0.19

Lower Zone 188.5 210.5 22.0 1.50 0.87 0.60 0.20 0.07 0.11 0.10

Inc. 188.5 198.8 10.4 2.22 1.26 0.85 0.29 0.11 0.18 0.15

Kaukua South LK20-013 22.0 37.7 15.7 1.18 0.32 0.20 0.05 0.07 0.12 0.15

Inc. 22.0 25.0 3.0 1.77 0.62 0.37 0.14 0.12 0.15 0.20

Lower Zone 125.5 137.4 12.0 0.81 0.43 0.30 0.10 0.03 0.05 0.07

Inc. 134.3 135.8 1.5 1.49 0.98 0.67 0.25 0.06 0.10 0.08

Kaukua South LK20-014 13.5 159.0 145.5 1.28 0.53 0.35 0.13 0.06 0.11 0.13

Upper Zone 14.5 31.0 16.5 0.97 0.25 0.15 0.05 0.05 0.08 0.13

Core Zone 87.0 159.0 72.0 1.96 0.94 0.62 0.23 0.09 0.17 0.17

Inc. 96.2 151.0 54.8 2.20 1.09 0.72 0.27 0.10 0.20 0.18

Inc. 109.0 128.0 19.0 2.80 1.39 0.91 0.35 0.13 0.27 0.22

Inc. 119.1 122.0 3.0 4.35 2.24 1.46 0.54 0.23 0.46 0.31

Kaukua South LK20-015 38.0 46.0 8.0 1.23 0.30 0.16 0.06 0.09 0.11 0.17

Inc. 39.0 40.0 1.0 2.65 1.18 0.66 0.30 0.23 0.23 0.25

Upper Zone 2 87.5 93.5 6.0 1.26 0.31 0.19 0.05 0.07 0.13 0.16

Lower Zone 190.2 202.4 12.2 1.42 0.66 0.43 0.18 0.04 0.09 0.14

Inc. 190.2 192.3 2.1 2.89 1.37 0.85 0.40 0.12 0.25 0.26

Kaukua South LK20-016 23.5 86.2 62.7 3.52 2.62 1.84 0.64 0.14 0.18 0.15

Inc. 23.5 66.0 42.5 4.15 3.14 2.21 0.77 0.16 0.21 0.17

Inc. 47.5 66.0 18.5 4.58 3.55 2.51 0.86 0.18 0.22 0.17

Inc. 60.5 64.5 4.0 5.12 4.02 2.86 1.00 0.16 0.23 0.19

Kaukua South LK20-017 80.3 102.5 22.2 1.79 0.36 0.22 0.05 0.09 0.32 0.20

Inc. 83.6 93.5 9.9 2.40 0.44 0.28 0.05 0.11 0.51 0.24

Inc. 92.6 93.5 0.9 8.70 0.54 0.30 0.04 0.20 3.81 0.30

Kaukua South LK20-018 46.1 56.5 10.4 1.64 0.43 0.26 0.06 0.11 0.17 0.21

Inc. 52.1 54.1 2.0 2.46 0.60 0.38 0.07 0.15 0.28 0.31

FW Zone 96.0 103.0 7.0 1.04 0.59 0.37 0.16 0.05 0.06 0.08

Kaukua South LK20-019 17.3 52.3 35.0 2.76 2.00 1.41 0.48 0.12 0.16 0.12

Inc. 26.5 37.0 10.5 3.29 2.48 1.77 0.56 0.15 0.18 0.13

Kaukua South LK20-020 77.7 99.3 21.6 1.24 0.30 0.18 0.04 0.08 0.13 0.16

Inc. 78.7 91.9 13.2 1.45 0.38 0.24 0.05 0.09 0.14 0.19

Inc. 78.7 83.7 5.0 1.71 0.47 0.29 0.07 0.11 0.17 0.22

Inc. 82.7 83.7 1.0 2.62 0.79 0.51 0.10 0.18 0.27 0.31

Kaukua South LK20-021 63.3 75.4 12.1 1.55 0.47 0.31 0.07 0.10 0.14 0.19

Inc. 63.3 71.4 8.1 1.83 0.61 0.40 0.09 0.12 0.16 0.22

Inc. 63.3 67.4 4.1 2.30 0.81 0.49 0.14 0.18 0.22 0.25

FW Zone 132.9 134.9 2.0 1.07 0.59 0.34 0.19 0.06 0.08 0.08

Kaukua South LK20-022 162.0 187.4 25.4 1.33 0.36 0.22 0.06 0.08 0.13 0.17

Inc. 173.0 175.2 2.2 2.34 0.68 0.45 0.08 0.16 0.25 0.28

Kaukua South LK20-023 147.2 185.0 37.8 1.77 1.13 0.78 0.27 0.08 0.13 0.10

Inc. 152.2 164.6 12.4 2.60 1.69 1.19 0.39 0.12 0.19 0.14

Inc. 154.3 157.3 3.0 4.00 2.63 1.88 0.58 0.17 0.31 0.20

*Palladium Equivalent

Palladium equivalent is calculated using US$1,100 per ounce for palladium, US$950 per ounce for platinum, US$1,300 per ounce for gold, US$6,614 per tonne for copper, and US$15,4332 per tonne for nickel. This calculation is consistent with the calculation in the Company’s September 2019 NI 43-101 Kaukua resource estimate.


Located in the PGE-rich Nipigon

Plate of the Proterozoic mid-

continent rift, near Thunder Bay,

Ontario.

• 2,500-hectare project along the West

Nipigon lineament that hosts the Thunder

Bay North (TBN), Seagull and Disraeli

Intrusions

• Located 40 km north of Clean Air Metals

TBN deposit with a M&I resource of:

• 355,000 ounces of Pd @ 1.07g/t,

377,000 ounces of Pt @ 1.13g/t

Disraeli PGE-Ni-Cu Property: Ontario, Canada

Versus


• Drill Ready, ground-work

completed:

• High resolution airborne Mag,

EM, & IP

• Mapping, soils and lake

sediment surveys

• Several untested airborne EM

anomalies in possible ultramafic

core of the intrusion

• Drilling has not tested the highest

priority target under the Disraeli

Lake

• Target:

• Disseminated to massive

sulphides in a feeder conduit

/ dike, similar to TBN

intrusion.

• Disseminated sulphides in a

basal phase similar to Sunday

Lake Intrusion.

Disraeli PGE-Ni-Cu Property: Highlights

West NipigonLineament

AeroTEM EM Anomalies

Reversely Polarized Intrusive

Airborne Total Field Mag

PALLADIUM ONE MINING INC. TSX-V:PDM FRA: 7N11 31TSX-V: PDM FRA: 7N11Palladiumoneinc.com

Contact:

Derrick Weyrauch, President & [email protected]

2020 12 07 - PDM Corporate Presentation v1 · 2020. 12. 7. · 6wduwhg zlwk d xqlw ri 7hfn wkhq...

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Transcript of 2020 12 07 - PDM Corporate Presentation v1 · 2020. 12. 7. · 6wduwhg zlwk d xqlw ri 7hfn wkhq...