THUNDER BAY — North American Palladium has announced the results of a new study that showed changing how ore is retrieved from its Lac des Iles mine will increase production and extend the mine's life.
The mine is situated about 85 kilometres north of Thunder Bay, and is accessed via Highway 527.
NAP, in a statement on Monday, said a previous plan to expand its open pit is being replaced by an expansion of the underground mine "using bulk mining methods to extract maximum value from several near-surface" ore deposits outside the original mine plan.
The study was initiated after the success of a recent transition to a new mining method (sublevel shrinkage or SLS) in the lower part of the mine which increased production and lowered costs.
Expanding on that, the company said, will result in improved margins, cash flows, and mine life, and will simultaneously provide the company with more flexibility to deal with any future palladium price volatility.
According to NAP, the projected life of the mine is extended by one year, to 2027, with average daily underground production doubling.
"This new approach will take full advantage of LDI's (Lac des Iles') large, lower-grade near-surface resources and allow for the mining of more resources at an improved grade," said president and CEO Jim Gallagher.
Gallagher also pointed to an improved outlook for palladium prices.
"The new feasibility study places the company in a strong position to manage volatility in palladium prices and capitalize on the robust palladium market while continuing to add resources through mine site and green-fields exploration," he added.
