The expansion of North American Palladium's Lac des Iles mine to open up a new mineralized zone will make the Toronto miner “the lowest cost primary palladium producer in the world,” said the company's president.
In an Oct. 5 release, William Biggar delivered an update on the first phase of its expansion project currently underway on its property 85 kilometres northwest of Thunder Bay.
A shaft is being installed with “nameplate” capacity to move 7,000 tonnes of ore per day. A ramp is being extended from its Roby Zone to its new Offset Zone, down to a depth of 1,380 metres.
Biggar said with much of the surface development close to completion and with the mobilization of their shaft sinking contractor, “we are on target to complete the first phase of the mine expansion in the fourth quarter of next year when the shaft will begin operating at a rate of 3,500 tonnes per day.”
The company plans to boost production to 5,500 tonnes per day by 2015 when annual production will be pegged at 250,000 ounces.
Biggar said higher volumes and improved infrastructure will lower their cash costs.
The expansion project began early last year to gain underground access to the Offset Zone that currently holds a total measured and indicated mineral resource of 2.5 million ounces of palladium.
The second round of expansion involves sinking the shaft deeper.
The miner also announced Oct. 4 it had raised $70 million through debt financing to fund the Lac des Iles expansion and for general working capital purposes.
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