Overview -
North American Palladium Ltd. is Canada's only primary producer of palladium, as well as by-products of platinum, gold, copper and nickel. The mine is located 85 kilometres northwest of Thunder Bay in northern Ontario. There is no nearby community and accommodations are provided at the mine camp.
The Lac des Iles deposit contains one of the largest open pit bulk mineable palladium reserves in the world. The mine has been in operation since 1993, beginning in 1999 to run a high-tonnage, lower-grade operation.
The mine is a conventional open pit operation, using blasthole drills, shovels, and haul trucks to supply ore to the mill (rated at 16,000 tonnes per day). There are 460 employees.
The ore crushing system includes a gyratory crusher, and two secondary crushers capable of handling in excess of 3,000 tonnes per day. The crushed ore is processed in a standard flotation circuit, consisting of one rod mill, three ball mills and a bank of flotation cells. A palladium rich sulfide concentrate is produced and shipped off-site for final processing.
Total palladium production for the year ended December 31, 2007 was 286,334 ounces representing an increase of 21% compared to the prior year.
In 2004 a final feasibility study confirmed the economic viability of the main high grade zone located directly underneath the existing open pit, initiating the planning for the underground operations. Commercial production of the underground mine commenced in 2006.
The production plan for the expanded mine calls for the blending higher-grade underground ore (6.62 g/t palladium) with ore from the open pit (1.80 g/t palladium) for an average palladium grade of 2.33 g/t during the five year life of the underground mine.
The current open pit reserves (at Oct/07) were to be exhausted in May 2009 and the current underground reserves will be mined until the end of 2010. The existing open pit and underground resources, particularly at the Offset Zone, represent potential to extend the current mine life. More drilling and studies are warranted.
Palladium represents approximately 85% of revenues generated from the operation. The remaining 15% are comprised of platinum, gold, copper and nickel metals.
On October 21, 2008, the mine was placed on "care and maintenance" due to declining metal prices. The closure resulted in the layoff of approximately 350 employees.
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