Producer ponders expansion

Canada’s only primary producer of palladium is pondering an expansion of the Lac des les mine near Thunder Bay, Ont.

Encouraged by positive results from a scoping study, North American Palladium (PDL-T) has budgeted $1.5 million for further diamond drilling and metallurgical testwork to confirm resources and mining reserves. Once results are in hand later this year, the company’s board will decide whether or not to proceed with a full feasibility study.

The open-pit operation reported a small profit in the last quarter of 1998, which reversed a string of losses in previous years (T.N.M., Dec. 14/98). The turnaround was attributed to operating and productivity improvements, as well as the expiry of hedging contracts, which had forced the company to sell its production at well below market prices.

At last report, the Roby zone at Lac des les hosted proven and probable minable reserves of 7.8 million tonnes with a combined PGM grade of 0.123 oz. per ton. The operation consists of a 2,650-tonne-per-day flotation mill fed from adjacent open pits. Concentrates are shipped to a nearby smelter for custom smelting and refining.