The 24-year-old striker signed a three-year deal with Pirates, after impressing in the ABC Motsepe League while playing for Yebo Yes United last season.
Palacios spoke exclusively to Goal about the attacker, who finished the 2013/14 campaign as one of the top goalscorers in the second tier of South African football.
"Yes, I know him. When he joined Pirates, he went straight to our reserve team, Yebo Yes United," Palacios told Goal. "But what I can tell you about him is that he's a good striker, because the opportunity is there, for him to do well in the first team," he said.
When asked about other promising youngsters in the Pirates academy that could soon be promoted into the Bucs first team, the former Bafana Bafana coach didn't want to reveal any names.
"We will see as time goes by, I can't mention names. We have a pool of players, and they will get a chance to play in the new tournament (Multichoice Diski Challenge)," he continued
"I won't put pressure on my players. For me participating in the tournament, it's a continuation of the process of development, and it's not about winning," he added.
"The main aim is to promote players into the first team. If they (Pirates technical team) are impressed by the youngsters, and they promote three or four players, then it's a bonus and I'd be happy with that," he concluded.