Northwest palladium miner to boost production

North American Palladium (NAP) intends to increase production by 75 per cent at its Lac des Iles mine in northwestern Ontario.

In a Jan. 20 news release, the Toronto mid-tier base metal miner announced its 2011 plans on production, capital spending and exploration budgets.

NAP says palladium production will increase from the 95,100 ounces posted last year to a forecasted rate of between 165,000 and 175,000 ounces in 2011.

The company will also be spending $147 million to expand the mine located 85 kilometres northwest of Thunder Bay. NAP is also setting aside $18 million for its exploration budget to increase its palladium reserves in Ontario and its gold reserves in Quebec.

NAP is advancing production and expansion in spending $7 million at its Sleeping Giant gold mine and mill in the Abitibi region in Quebec. A further $26 million is earmarked to explore and develop its Vezza gold production in Quebec. The company wants to advance the project to a production decision by year's end.

“Over the next two years, we plan to achieve our ambitious growth strategy to become a mid-tier precious metal producer by significantly increasing our palladium and gold production,” said NAP president and CEO William Bigger in a statement. “During this transition period, we will invest over a quarter of a billion dollars in our mine expansions, exploration and the development of our gold properties, thereby creating significant value for our shareholders.”