PALLADIUM: NAPalladium to boost production at Lac des Iles mine

ONTARIO – Toronto’s North American Palladium has announced plans to boost production by resuming surface mining at the Lac des Iles palladium mine over the next 9.5 years. The recent feasibility study anticipates a mining rate of 37.7 million tonnes over the mine life with an average grade of 2.21 g/t palladium containing 2.58 million oz. The milling rate will be 12,250 t/d, producing 237,000 payable oz. per year at full production. [caption id="attachment_1003718673" align="alignleft" width="364"] Lac des Iles mine production areas, looking west. Credit: North American Palladium.[/caption] Ore will be sourced from the reopened pit at a rate of 5,420 t/d as well as from underground at 6,250 t/d from 2018 through 2025. Surface mining will resume in Q1 2018, beginning with the small Sheriff pit and then the larger Roby pit pushback where the rate will be 3,700 t/d to begin and reaching about 5,000 t/d in 2022. The largest source of underground ore will be the Lower Offset zone at 4,000 t/d, as well as the Roby footwall and B2 zones. The project has proven and probable reserves from all sources of 38.5 million tonnes grading 2.25 g/t Pd and containing 2.79 million oz. of palladium. NAPalladium estimates the life of mine capital expenditures to be $303 million. The mine has a post-tax net present value (5% discount) of C$536 million and a life of mine all-in sustaining cost of US$527/oz. of palladium sold. Additional details are available at www.NAPalladium.com in the news release dated June 7, 2017.