THUNDER BAY, Ontario The pre-feasibility study, conducted by NORTH AMERICAN PALLADIUM for underground development at the Lac des Iles palladium mine, is complete and very positive. Capital costs would run about $37.3 million and unlock nearly a million ounces of palladium.
The latest underground figures estimate probable reserves of 4.98 million tonnes grading 5.86 g/t Pd, 0.35 g/t Pt, 0.29 g/t Au, 0.06% Cu, and 0.07% Ni. Additional indicated and inferred resources total 7.37 million tonnes for similar grades.
The Lac des Iles open pit became North America's only primary palladium producer in 1993. Proven and probable reserves in the pit are 39.01 million tonnes at 1.89 g/t Pd, 0.21 g/t Pt, 0.15 g/t Au, 0.06% Cu, and 0.08% Ni. Total measured and indicated resources are 13.74 million tonnes at 1.71 g/t Pd, 0.21 g/t Pt, 0.14 g/t Au, 0.07% Cu, and 0.08% Ni. Another 110,000 tonnes of resources have been inferred.
North American Palladium is most interested in the Main High Grade zone below the pit bottom. Results of 47,000 metres of infill drilling confirmed the zone's continuity and high-grade nature. The pre-feasibility study assumed a mechanized longhole development accessed through a portal in the pit. The mining rate would be 2,000 tonnes/day. The base case for the study indicated a cumulative cash flow of Cdn $37.4 million at a palladium price of US$325/oz.
To learn more about the demand, supply and price of palladium, go to www.napalladium.com.