Production performance from the problem-plagued palladium producer Lac des les improved for the third successive quarter, owner North American Palladium (PDL-T, PAL-X) reports.
Lac des les, northeast of Thunder Bay, Ont., produced just under 60,000 oz. palladium in the quarter ended Sept. 30, 51% higher than in the third quarter of 2005. The total was a little better than the second quarter’s 57,000 oz., and the mine has produced 164,000 oz. in the first nine months of 2006.
At the same time, production of three byproducts — platinum, nickel, and gold — increased along with palladium production, while copper production was slightly lower. The mine produced 5,612 oz. platinum, 4,313 oz. gold and 282 tonnes nickel during the quarter, all substantially higher than in the third quarter of 2005; copper production fell to 572 tonnes from 636 tonnes a year before.
The better production was driven by improvements in grade and by better recovery in the mill, which had performed poorly for several years. Millhead grade in the quarter was 2.2 grams palladium per tonne, 50% higher than a year before, and mill recovery rose to 72.7% from 62.9% in the corresponding quarter of 2005, making for a 51% increase in production even though daily mill throughput, at 12,652 tonnes, was down 12%.
Lac des les’ underground mine, which started full production in April, contributed an average 2,189 tonnes per day to the throughput, at an average 5.98-gram-per-tonne head grade. A small amount of ore came from surface stockpiles.
There was little change in the grades of open-pit ore, which ran about 1.4 grams palladium per tonne and still contributed about three-quarters of the ore going to the mill.
North American Palladium realized US$324 per oz. on palladium sales in the third quarter. In the second quarter, when it lost $11.3 million on revenue of $35.5 million, it realized US$347 per oz.
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