Production of platinum and palladium at Stillwater Mining's two underground mines in south-central Montana rose 6.2 per cent during the third quarter of 2011 compared to the same period last year.

Output of palladium and platinum rose from 122,400 oz to 130,000, the firm revealed as it released its Q3 results.

Production at the Stillwater Mine increased to 96,800 oz in the third quarter of 2011, compared to 89,600 oz in the same period of 2010.

Meanwhile, output at the East Boulder Mine was 33,200 oz in the period, slightly above the 32,800 oz reported in the same quarter last year.

Improved ore grades in the lower off-shaft area, good mining productivities and the contribution of higher grades in the east area of the Stillwater Mine drove the higher production for the 2011 third quarter, the firm said.

Furthermore, recycling output increased more than 70 per cent over the third quarter of 2010 to 133,500 oz of palladium, platinum and rhodium.

Stillwater chairman and chief executive officer Francis R McAllister said the firm was "extremely pleased" with production results for the third quarter and the first nine months of the year, which were ahead of plan.

"As we discussed last quarter, after achieving very strong production during the first half of the year, we planned to shift some resources out of ore production and into mine development in order to sustain the developed state of the two mines," he added.

Those adjustments were made during the third quarter as planned and the miner intends to continue them during the fourth quarter of this year.

"After reviewing year-to-date mine production and our plans for the fourth quarter, we decided to maintain our palladium and platinum production guidance at 515,000 mined ounces for the year," added Mr McAllister.

Stillwater also said it continues to make progress at its Marathon PGM-copper project in Ontario, Canada.

Currently in the environmental assessment phase, detailed engineering at the project is scheduled to begin in November 2011.

Source:

Stillwater Mining Reports Earnings of $40.7 Million for the Third Quarter (28/10/11) 

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