Milling suspended at Lac des Iles

North American Palladium (NAP) has suspended milling at its Lac des Iles palladium mine north of Thunder Bay due to water balance issues.

The company quietly made the announcement on May 11 while reporting its first-quarter results from 2015. It said water seepage was a problem on site, and damage to a liner at a water reclaim pond needed to be repaired.

In a May 28 update, NAP said it initially believed milling could restart after repairs were made, but leakages at existing containment structures are causing further problems.

“These issues have been exacerbated by the late and rapid onset of spring, accompanied by heavy rains, causing excess water to enter containment areas, resulting in an upsetting of the water balance,” the company said in a news release.

The company said it has additionally experienced a leak in a decommissioned tailings pond that was used to store reclaimed water.

“An amount of water has leaked and is currently being contained on site and monitored closely.”

NAP said underground mining operations have continued and production rates for April and May have been slightly ahead of plan. The company said a stockpile of underground ore has built up at surface and will be available for processing once milling operations resume.

The company said it is using the shutdown to bring forward planned maintenance work.