Laakso PGE-Nickel-Copper Project
The Laakso Platinum Group Element (“PGE”)-Nickel-Copper Project is located in central Finland, adjacent to the border with Russia, around 40 km north of the town of Taivalkoski. The property is assessable by road, with the port city of Oulu 190 km to the southwest.
The Laakso PGE-Nickel-Copper Project is held by Laakso Minerals Oy, which is 100%-owned by GESI’s wholly-owned Swiss subsidiary, ZB Capital AG.
GESI is the largest reservation holder in Finland’s prolific Kuusamo Mining District. These licences contain a number of targets for both PGE-Nickel-Copper mineralisation and diamond-bearing kimberlites.
GESI’s reservation permits cover an area of 1,400 square kilometres (km²). These permits are located adjacent to the permits that make up Palladium One’s (TSX-V:PDM) 38km² Läntinen Koillismaa (“LK”) and 200km² Kostonjärvi (“KS”) PGE-Nickel-Copper projects, where two large PGE-Ni-Cu deposits have been defined and exploration results indicate the potential for a additional mineralisation along both the Kaukua and Haukiaho Trends.
Palladium One’s LK Project currently has a total pit constrained Indicated Mineral Resource Estimate of 11 million tonne (“Mt”) containing 566,000 ounces (“oz”) palladium equivalent (“Pd_Eq”) at a grade of 1.60 g/t Pd_Eq and an Inferred Mineral Resource Estimate of 43.6 Mt containing 1,669,000 oz Pd_Eq at a grade of 1.19 g/t Pd_Eq. This resource estimate comes from two deposits, one along the Kaukua Trend the other along the Haukiaho Trend but Palladium One is confident that the area contains a lot more mineralisation and are targeting over 100 Mt in the greater Kaukua area.
The resource on the Kauka Trend comprises a 3 km section of the 7 km total anomaly strike, which is in proximity to the northern portion of GESI’s Laakso Project. At present the resource at Kauka consists of 11 Mt containing 566,000 oz Pd_Eq at a grade of 1.60 g/t Pd_Eq and an Inferred Mineral Resource Estimate of 10.9 Mt containing 459,000 oz Pd_Eq at a grade of 1.31 g/t Pd_Eq.
Palladium One is currently conducting a drill programme on the Kaukua West Zone, where a large induced polarisation (“IP”) anomaly has been defined to the west of a fault that was thought to cut off the pit constrained Kaukua resource estimate. The Kaukua West Zone anomaly is the strongest IP response within the whole greater Kaukua area and could represent high-grade mineralization that could support an underground PGE-Ni-Cu mine. IP has proven to be a reliable technique for discovering and outlining shallow higher grade PGE-Ni-Cu mineralization at Kaukua and elsewhere on the LK project.
IP anomalies also extend beyond the pit constrained Kaukua Resource to the south and are coincident with regional airborne magnetic anomalies and strongly suggests that Kaukua-style mafic-ultramafic hosts rocks extend into this area. This anomaly is a significant drill target for Palladium One and may represent another higher-grade core zone similar to the western portion of Kaukua South Discovery. This area is yet to be drill tested and is in proximity to GESI’s licences.
Recent drilling at Kaukua South Discovery by Palladium One has returned some very high-grade drill results, including:
- 112m at a grade of 2.08 g/t Pd_Eq from 171.5 m, including 24 m at a grade of 4.07 g/t Pd_Eq (K21-081)
- 62.7m at a grade of 3.24 g/t Pd_Eq from 23.5 m, including 18.5 m at a grade of 4.32 g/t Pd_Eq (K21-016)
- 40.5m at a grade of 1.86 g/t Pd_Eq from 229.5 m, including 3 m at a grade of 2.95 g/t Pd_Eq (K21-079)
These results demonstrates potential for higher-grade zones within the wider Kaukua Area, adjacent to GESI’s ground holding.
The resource on the Kauka Trend comprises a 2 km section of the 5 km total anomaly strike. While the resource estimate from the Kaukua Trend is PGE-rich, with two-thirds of the value in palladium and platinum, the resource estimate from the Haukiaho Trend is base metal-rich, with two-thirds of the value in nickel and copper.
At present the resource at Haukiaho contains of an Inferred Mineral Resource Estimate of 32.7 Mt containing 1,210,000 oz Pd_Eq at a grade of 1.15 g/t Pd_Eq.
Palladium One has recently competed an IP survey covering a 5 km section of the Haukiaho Trend, defining three strong chargeability anomalies.
One of these anomalies, the Western Drill Target, contains the current Haukiaho Trend mineral resource estimate.
The Central Drill Target contains significant copper-nickel grades returned from drilling by Otutokumpu in the 1980’s, however the drill core was not assayed for PGE’s.
At the Eastern Drill Target, Palladium One completed a reconnaissance sampling programme in 2019, returning up to 3.3 g/t Pd_Eq. (0.51% Cu, 0.33% Ni, 0.56 g/t Pd, 0.18 g/t Pt, and 0.21 g/t Au).
PGE bearing boulders have also been discovered along trend of these targets within Palladium One’s Kostonjärvi Project (“KS”) just 5km from the boundary with GESI’s Laakso Project.
The Laakso Project cover a large portion of the Koillismaa–Näränkävaara Intrusive Complex.
The intrusive complex is comprised of the Koillismaa Intrusion to the east, which contains the Koillismaa PGE-Ni-Cu Belt, and the Näränkävaara Intrusion to the west. A strong positive gravity and magnetic anomaly (considered to be a major dyke at depth) connects the two parts of the complex (shown in green in image above). The anomaly is around 60 km in length and 1 to 3 km deep.
This major dyke is believed to be genetically related to the formation of Koillismaa PGE-Ni-Cu Belt potentially acting as a conduit for the mafic-ultramafic magma that formed the mineralisation. The dyke and the host rock surrounding the dyke are considered to be a significant targets for additional PGE-Ni-Cu mineralisation. The Laakso Project covers a significant portion of this dyke.
The Koillismaa Deep Hole
The Geological Survey of Finland (GTK) is currently drilling a 3 km deep hole in southern Kuusamo, Finland, using a specially designed drill rig to test the geophysical anomaly believed to be a dyke. This hole is located within GESI’s Laakso Project. This ambitious project is pushing the boundaries of modern drilling technology.
GTK hopes to gain an understanding of the bedrock geology, while also facilitating deep-hole research for many disciplines, including: survey technology, mineral systems, 3D modelling, geothermal energy, deep groundwater, and bedrock stability.
The top of the dyke was intersected by the Koillismaa Deep Hole at a depth of 1,423 m and at this depth the rocks within the drill core change from felsic to ultramafic. Drilling of the borehole was suspended for technical reasons in February 2021 at depth of 1.7 km, drilling is expected to be resumed in the near future.
GESI will continue to monitor the progress of the Koillismaa Deep Hole with interest.
Mining in Finland
Finland has been consistently ranked by the Fraser Institute in Canada as one of the top ten mining jurisdictions in the world over the past nine years, based on mineral endowments and public policy factors.
The country benefits from a strong mining tradition with over 40 operational mines and ten smelters and steel mills, supported by a robust mining law with strict but clear mining and environmental legislation.
As a developed European Nation, it benefits from extraordinary infrastructure, as well as a highly skilled and experienced work force and a well developed and innovative mining ecosystem.
Finland is one of the most important mining technology hubs in the world having more than ten mining related universities and research organizations, as well as over 200 mining technology exporters providing products and solutions to enhance sustainable and productive mining.
Finland has a low corporate tax at 20% and no mining royalties.