The mine now boasts a reserve of 96.2 million tonnes grading 1.55 grams palladium, 0.17 gram platinum and 0.12 gram gold per tonne, plus 0.06% copper and 0.05% nickel. By comparision, the estimate at the end of 1999 was 79.1 million tonnes grading 1.76 grams palladium.
Essentially, the increase reflects an expansion of the pit outline to 1,100 metres in length, 850 metres in width and 400 metres in depth. The larger pit, in turn, reflects the sinking of 232 stepout drill holes in 2000.
The calculation, which has been independently verified, is based on a cutoff grade of 0.7 gram palladium. A palladium price of US$400 per oz. was used, which is well below current spot prices and US$75 above a guaranteed floor price (T.N.M., Feb. 5-11/01).
North American Palladium notes that reserves are sufficient for 17 years of production at the new daily milling rate of 15,000 tonnes. During that time, an average of 250,000 oz. palladium, 23,440 oz. platinum and 18,000 oz. gold, plus copper and nickel will be produced annually.
Cash costs, including byproduct credits and royalties, are estimated at US$160 per oz. palladium.
North American Palladium plans to sink 65,000 metres of drilling by year-end, mostly in the Roby zone, which remains open at depth and to the east and west. Several holes are earmarked for a 19.7-million-tonne inferred resource on the zone’s perimeter. The resource averages 1.69 grams palladium.
Drilling will also target the higher-grading Shear zone, which forms the deposit’s core. The zone averages 6.5 grams palladium over 17 metres and has been confirmed to a depth of 620 metres, suggesting that it may be amenable to underground bulk-mining.
North American Palladium is Canada’s only primary palladium producer. In addition to the actual mine, it holds 150 sq. km in the surrounding vicinity.
In 2000, the miner produced 95,116 oz. palladium, 6,074 oz. platinum and 6,035 oz. gold, plus copper and nickel. Cash costs averaged US$142 per oz. palladium
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