Vancouver – Problems with the primary crusher at its Lac des Iles mine in northwestern Ontario has prompted North American Palladium (PDL-T, PAL-X) to take the unit temporarily off-stream for repairs.
The disruption will effect the palladium operation’s milling circuit, which underwent intermittent stoppages throughout December due to the crusher issues. The mill will see a reduction in throughput from 9,000 to 7,500-tonnes-per-day during the down-time. Portable crushing units have been ordered to allow for resumption of operations while the main unit undergoes its repairs.
Lac des Iles is an open pit palladium producer with by-product nickel, platinum, gold and copper. The company is developing an underground mine at the operation, targeting the Main High Grade zone beneath the ultimate pit floor. The program is expected to cost about $40 million with initial underground production anticipated in early-2006.
Lac des Iles produced about 140,000 oz. of palladium (with about 128,000 oz. payable) in the first nine months of 2005, down significantly from the 246,000 oz. of palladium for the corresponding period of 2004 due to a drop in ore grade and increased stripping ratios. Output of 15,000 oz. of platinum, 11,000 oz. of gold, 4.4 million pounds of copper and 1.8 million pounds of nickel was also realized in the first three quarters of 2005.
NA Palladium’s hedge contract, guaranteeing a floor price of US$325 per oz. of palladium, expired on June 30, 2005 negatively effecting revenues. The company now sells its output at either monthly average or spot prices. Fortunately for the company, spot palladium prices have rallied from the US$190 per oz. level throughout most of 2005, to the recent US$265 per oz. range.
Be the first to comment on "NA Palladium shuts down Lac des Iles crusher"