NAP nearly doubles production (January 08, 2004)

With the new primary crusher at its Lac des les mine near Thunder Bay, Ont., fully operational for a second consecutive quarter, North American Palladium (PDL-T) saw fourth quarter palladium production nearly double from the year ago period.

During the latest quarter, the mill ran through a shade more than 1.5 million tonnes of ore averaging 2.6 grams palladium per tonne to produce 94,114 oz. The mill also spat out 7,354 oz. of platinum, 7,722 oz. of gold, 638 tonnes of nickel and 1,040 tonnes of copper as byproduct.

Overall in 2003, some 5.1 million tonnes grading 2.3 grams were processed to yield 288,703 oz. of palladium. Byproduct metals tallied to 23,742 oz. platinum, 23,536 oz. gold, 1,846 tonnes nickel and 3,240 tonnes copper. The year’s average palladium recovery rate rang in at 75.5%.

NAP attributes the increase in production to higher head grades, improved mill availability and throughput. The company expects to continue its strong performance during 2004, with the mill projected to process at a 15,000-tonne-per-day clip.

In other news, the company has inked an option and joint venture deal to pick up a half-interest in the Haines and Conacher properties near Inco‘s (N-T) Shebandowan mine. The Haines property is adjacent to NAP’s properties in the Haines Township west of Thunder Bay.

Under the deal, NAP can take a 50% interest in the properties by spending $2 million and paying Inco $100,000 over the next four years. NAP will act as operator during the option period and for as long as it maintains its half-interest.