North American Palladium (NAP) is targeting annual palladium production of 140,000 oz over a two-year period at its flagship Lac des Iles (LDI) mine, it was confirmed yesterday (8th December).

The facility in north-western Ontario in Canada was placed on care and maintenance in October 2008 but the company has announced that operations are now set to restart.

Although work will only resume at the Roby Underground Zone, NAP believes that it will be able to mine the precious metal via ramp access at a rate of 76,500 tonnes per month.

"We are very encouraged by the steady rise in the price of palladium," said President and CEO William Biggar.

"With palladium approaching US $400 per oz, we believe it is the right time to resume operations at LDI."

NAP has also revealed that it will commence development of the Offset Zone, which is located some 250m below the Roby Underground Zone in a westerly direction.

The first stage will involve a $16 million project to build a 1,500m ramp at a depth of 200m, with the work expected to last for approximately 12 months.

"We believe that the Offset Zone has the potential to add at least an additional ten years of mine life to LDI at an annual production rate of at least 250,000 oz of palladium per year at significantly lower cost and higher profitability," added Mr Biggar.

NAP's decision to place LDI on care and maintenance was motivated by declining palladium prices towards the end of last year.

Source:

NAP To Restart Lac des Iles Palladium Mine and Commence Development of the Offset Zone (08/12/09)

NA Palladium begins restart at Lac des Iles (09/12/09)

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