Palladium miner expects new Lac des Iles shaft in production for 2012

North American Palladium (NAP) said finishing the expansion at the Lac des Iles mine (LDI) is a priority for the Toronto-based miner.

In a Jan. 17 release, NAP president and CEO William Biggar said expects the new 7,000-tonnes-per day shaft to be commissioned by year's end.

The operation is 85 kilometres northwest of Thunder Bay.

The company is expecting modest growth in LDI production this year with ounces increasing from 150,000 to 160,000, with cash costs per ounces in the range of US $375 to $400.

NAP is budgeting $116 million for LDI this year.

Some of that money will spent on exploration with $16 million earmarked for a 70,000-metre drill campaign to upgrade its resources and reserves at LDI and other nearby properties.

In northwestern Quebec, NAP is spending $17 million to crank up gold production at its new Vessa mine. With a nine-year mine life, Biggar said Vezza will be a “steady contributor of cash flow for many years to support growth in our palladium operations.”

However, “insufficient operating margins” is forcing a halt to production at its nearby Sleeping Giant gold mine. The mill will continue to operate to process ore from Vezza.