Getting optimum use of a new shaft at Lac des Iles (LDI) is on the collective minds at North American Palladium heading into 2014.
The company released plans to increase production of 170,000 to 175,000 ounces with underground production at the northwestern Ontario mine forecasted to jump from 3,000 tonnes daily in the year’s first half to 5,000 tonnes by year’s end.
Company president-CEO Phil du Toit said with production through the shaft increasing, a decrease in operating costs should follow. The capital investment and exploration budgets for this year are set at $30 million and $4 million, respectively.
“We recognize that our ability to proceed with our plans is contingent on securing additional financing, which we are working hard to complete,” said du Toit.
He said the asset base is solid and with the infrastructure investments made, LDI is well positioned to increase underground production, operate as one of the world’s lowest cost producers, and is prepared to deliver a commodity to the market where the demands exceeds the supply.
A preliminary economic assessment is coming to study future growth potential at the mine to better optimize the Offset Zone and examine several other opportunities.