ONTARIO – Initial drill results from the offset high grade zone (OHGZ) confirm its potential, according to NORTH AMERICAN PALLADIUM of Toronto, operator of Canada’s only primary palladium producer. The latest assays support the previously released mineral resource estimate that put the OHGZ total at three times the tonnage of the Roby zone now being mined at the Lac des Iles project.
Grades in the OHGZ are similar to those in the Roby zone. Highlights from the recent program include 9.99 g/t Pd over a true width of 5.2 metres and 7.24 g/t Pd over 29.0 metres. All holes reported also had platinum, nickel, copper and gold values.
The OHGZ is a fault-displaced continuation of the Roby zone mineralization and is located below and approximately 250 metres to the west of the Roby zone. The OHGZ was first identified in 2001 when diamond drilling below the limits of the known mineralization discovered the down-dip continuation of the Roby zone that was cut off by an offset fault.
NAP says the in-fill drilling program is expected to be completed in the fourth quarter of this year, with assay results being returned by year-end. A preliminary economic assessment has been commissioned that will examine several exploitation scenarios for the OHGZ. The results of this preliminary economic assessment are expected to be reported in a technical report in the first quarter of 2008. That report will be posted on www.NAPalladium.com when it is available.