North American Palladium's Lac des Iles Underground Boosts Second Quarter Operating Performance
14 7월 2006 - 11:24PM
PR Newswire (US)
TSE - PDL AMEX - PAL TORONTO, July 14 /PRNewswire-FirstCall/ -- In
the second quarter of 2006, the Company's Lac des Iles mill
produced 57,326 oz of palladium compared with 47,015 oz produced in
the previous quarter of this year and 48,230 oz produced in the
second quarter of 2005. The second quarter of 2006 marked the first
complete quarter of production from the underground mine which
began full production on April 1, 2006. The underground operation
contributed significantly to the increase in average mill feed
grade of 2.22 g/t palladium in the second quarter compared to 1.79
g/t in the first quarter and 1.78 g/t in the comparable quarter
last year. For the month of June 2006, the monthly average mill
feed grade was in line with expectations at 2.36 g/t palladium.
By-product metal production during the quarter included 5,487 oz of
platinum (4,698 oz in Q1 2006), 4,200 oz of gold (3,615 oz in Q1
2006), 619,276 lbs of nickel (616,037 lbs in Q1 2006) and 1,258,978
lbs of copper (1,213,394 lbs in Q1 2006). Precious metal production
comprised of palladium, platinum and gold accounts for
approximately 75% of total production by revenue. In total,
1,101,543 tonnes of ore was processed during the second quarter of
2006 for an average of 12,105 tonnes per day at a palladium
recovery rate of 73.1%, versus 1,195,304 tonnes or 13,135 tonnes
per day at a recovery of 70.2% in the same period last year. The
shortfall relates almost exclusively to two unscheduled shutdowns -
one for the replacement of the conveyor feeding the coarse ore
stockpile and the other for three additional days relating to the
delivery of non-specification SAG Mill pulp lifters that will
require replacement in July. Throughput in comparison to the first
quarter of this year was slightly lower, however production
benefited markedly from the increase in head grade of blended
underground mine and open-pit ore. The underground is operating as
expected, consistently producing over 2,000 tonnes per day or
approximately 18% of total tonnes milled. The first stope has been
completed while the second and third stopes are currently being
mined simultaneously. Palladium production for the first six months
of 2006 of 104,341 oz was slightly higher than that produced in the
same period last year of 100,802, while the average recovery rate
also improved marginally at 72.9% versus 72.2% last year.
By-product metal production for the first half of 2006 totaled
10,184 oz of platinum, 7,815 oz of gold, 2,472,372 lbs of copper
and 1,235,313 lbs of nickel.
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2006 2005
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Palladium Q2 6 Mos Q2 6 Mos
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Ore Milled (tpd) 12,105 12,305 13,135 12,992
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Head Grade (%) 2.22 2.00 1.78 1.85
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Recovery (%) 73.1 72.9 70.2 72.2
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Production (oz) 57,326 104,341 48,230 100,802
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By-Products
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Platinum (oz) 5,487 10,184 5,123 10,505
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Gold (oz) 4,200 7,815 3,834 7,965
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Copper (lbs) 1,258,978 2,472,372 1,432,890 2,994,929
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Nickel (lbs) 619,276 1,235,313 643,505 1,421,705
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The gradual return in 2006 towards optimal levels of productivity
is encouraging in that measures put in place to resolve past issues
relating to mill availability and equipment are beginning to have
tangible results. As an example, modifications to the flotation
circuit in the quarter appear to have mitigated past seasonal
recovery effects and crushing throughput has been significantly
improved by altering blasting techniques. As of June 2006, mill
availability had improved to 88.3% and while marginally short of
our target of being consistently over 90%, further refinements are
expected to achieve optimal sustainable levels in upcoming
quarters. Spot palladium prices in the second quarter showed
considerable strength reaching a high of US $404 per oz in May, the
first time since the historic peaks recorded in 2001, before
settling at US $312 per oz at the end of June. The Company
continues to pursue its non-hedging policy for its primary metal
palladium, and is optimistic that global catalytic demand and
consumption driven by jewellery and technology will keep physical
demand strong.
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North American Palladium's Lac des Iles Mine is Canada's only
primary producer of platinum group metals and is one of the largest
open pit, bulk mineable palladium reserves in the world.
Palladium's catalytic qualities are expected to play an increasing
role in the automotive and purification industries in response to
global environmental solutions, in fuel cell technology for
alternative energy sources while continuing to have widespread
application in the dental, electronics, chemical and jewellery
sectors. The Company also generates substantial revenue from
by-product platinum, nickel, gold and copper and is actively
exploring projects in Canada and Finland. Forward-Looking
Statements - Certain statements included in this news release are
forward-looking statements which are made pursuant to the "safe
harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995. They include estimates and
statements that describe the Company's future plans, objectives and
goals, including words to the effect that the Company or management
expects a stated condition or result to occur. When used herein,
words such as "expect", "appear", "continues", "optimistic", "will"
and other similar expressions are intended to identify
forward-looking statements. In particular, statements relating to
estimated future metal prices and future ore production are
forward-looking statements. In making the forward-looking
statements in this news release, the Company has applied several
material assumptions, including but not limited to, the assumption
that increasingly strong palladium and other commodity prices will
continue to benefit the Company and the integrated operation of the
underground mine with the open pit mine are viable operationally
and economically. Any forward-looking statements in this news
release involve inherent risks and uncertainties and are subject to
factors, many of which are beyond our control, which may cause
actual results or performance to differ materially from those
currently anticipated in such statements. Important factors that
could cause actual results to differ materially from those
expressed or implied by such forward-looking statements include
among others metal price volatility, economic and political events
affecting metal supply and demand, fluctuations in ore grade or ore
tonnes milled, and geological, technical, mining or processing
problems. For a more comprehensive review of risk factors, please
refer to the Company's most recent Annual Report under
"Management's Discussion and Analysis of Financial Results" and
Annual Information Form under "Risk Factors" on file with the U.S.
Securities and Exchange Commission and Canada provincial securities
regulatory authorities. The Company disclaims any obligation to
update or revise any forward-looking statements whether as a result
of new information, events or otherwise. Readers are cautioned not
to put undue reliance on these forward-looking statements.
DATASOURCE: North American Palladium Ltd. CONTACT: North American
Palladium Ltd.: Jim Excell, President & CEO, Tel: (416)
360-2656; Ian MacNeily, Vice President, Finance & CFO, Tel:
(416) 360-2650; Donna Yoshimatsu, Director, Investor Relations,
Tel: (416) 360-2652; Shanda Theaker, Manager, Investor Relations,
Tel: (416) 360-2651
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