THUNDER BAY -- North American Palladium says it is "encouraged" by the results of its winter exploration program on mining claims near Sunday Lake, 25 km northeast of Thunder Bay.
The company reported Tuesday that test drilling at the Jacques Township property has provided clear targets for follow-up programs, and additional drilling on newly discovered platinum-group-metals (PGM) mineralization.
"The discovery of PGM mineralization in the central part of the property, with extensions to the eastern area of mineralization, are very positive developments that open up a much larger area for exploration," said NAP vice-president Dave Peck.
NAP president and CEO Jim Gallagher said "we are very encouraged by the new drilling results."
The company signed an agreement last year with Impala Holdings and Transition Metals under which NAP has the right to acquire a 75 per cent ownership stake at Sunday Lake, and will spend nearly $5 million over five years on exploration.
The property contains platinum, palladium, copper and some nickel.
In a separate statement issued Tuesday, Transition Metals CEO Scott McLean said "These results demonstrate the potential of the Sunday Lake Intrusion to host significant economic mineralization and the grades encountered are higher than other similar deposits and mines in the district."
McLean added that the geology at Sunday Lake is very similar to to the company's 100 per cent owned Saturday Night metals deposit, 16 km to the west, which he said may have similar potential.
The Sunday Lake deposit is 95 kilometres by road from NAP's existing palladium mine and mill at Lac des Iles off Highway 527.