Canadian Palladium Resources Inc. reported that SGS Canada Inc. of Lakefield, Ontario (SGS) has completed initial metallurgical test work on the East Bull Palladium Deposit, located 90 km west of Sudbury, Ontario, with favourable outcomes for metal recovery and concentrate grades. The preliminary, scoping level, flotation test work indicates that a concentrate product could be produced at a copper recovery of ~90% and palladium recovery of ~74% with grades of 16.5% Cu, ~50 g/t Pd, ~14 g/t Pt and ~9 g/t Au. These recoveries and grades were achieved with a favourable low mass pull of only 0.8% of the initial sample weight.

SGS has also identified opportunities to further improve recoveries with additional test work. The metallurgical study was performed on 40 kg drill core composites from each of the Valhalla and Garden Zones of the East Bull PGM project. The primary purpose of the metallurgical study was to characterize the sulphide mineralogy, and evaluate potential metal recoveries and concentrate quality for the East Bull Deposit.

Testing included mineralogy, comminution, and flotation test work. The test samples from the Valhalla and Garden Zones had head grades of 0.58 g/t Pd, 0.17 g/t Pt, 0.15% Cu and 0.39 g/t Pd, 0.15 g/t Pt, 0.17% Cu respectively. Rougher flotation test work indicated that a grind size of 80% passing 35 m was best for both samples.

Comminution test work indicated that both samples were relatively hard and moderately abrasive relative the SGS database of Bond Ball Mill Work Index (BWI) values. The preliminary scoping recoveries and concentrate grades reported are based on the 4th cleaner concentrate product that indicated copper recovery of ~90% and palladium recovery of ~74% in 0.8% mass pull, with grades of 16.5% Cu, ~50 g/t Pd, ~14 g/t Pt and ~9 g/t Au. These scoping tests were made with Aerofloat 3477 combined with PAX reagents.

SGS reports that these recoveries should improve with recycling of middling streams and further locked cycle and continuous test work. The low mass pull is favourable for potential future concentrate smelter treatment charges. In 2022, Canadian Palladium reported an updated Mineral Resource Estimate for the East Bull Deposit that includes total Indicated Resources of 16.5 million tonnes at a grade of 0.93 g/t PdEq for 492,100 ozs PdEq AND total Inferred Resources of 16.3 million tonnes at a grade of 0.99 g/t PdEq for 519,600 ozs PdEq.

These totals include Pit-Constrained Mineral Resources at a CAD 15/t net smelter return (NSR) cut-off and Out-of-Pit Mineral Resources at a CAD 50/t NSR cut-off. The palladium and associated rhodium, platinum, and gold mineralization is primarily hosted within a 45° north dipping vari-textured gabbro unit in disseminated copper-nickel sulphides near the basal contact of the East Bull Gabbro. Drill results have demonstrated the consistency of the disseminated precious metal-bearing sulphide mineralization that occurs near the basal contact of the East Bull Gabbro.

Drilling has successfully focused on testing the strike and downdip extensions of this "contact-type" mineralization that is typically tens of metres thick for over 3 km strike length. The Company is also evaluating potential footwall mineralization related to feeder conduits for the East Bull Gabbro.