TORONTO, ONTARIO--(Marketwire - July 17,
2008) - North American Palladium Ltd. (TSX:PDL)(TSX:PDL.WT)(AMEX:PAL)(AMEX:PAL.WS)
today announced production results for the three month period ending
June 30, 2008.
Highlights for the Quarter
- Total palladium production for the quarter ended June 30, 2008 of 65,791 ounces
was roughly on par with production of 66,651 ounces
in the same quarter last year.
- Mill head grade for the second quarter of 2008 improved to 2.35 g/t
palladium versus head grade of 2.26 g/t in the same period last year.
- An average palladium spot price of US$444 per ounce for the quarter
ended June 30, 2008 represents a 21% increase over the average spot
price of US$368 in the same period last year.
Results of Operations
For the second quarter of 2008, the Company's Lac des Iles Mine
produced 65,791
ounces of palladium at an average head grade of
2.35 g/t. This is roughly on par with production of 66,651 ounces
at 2.26 g/t in the same quarter last year. A series of record rainfalls
during the second half of June led to changes in the short-term mine
plan due to high water levels in the open pit. This situation is
expected to be corrected by the end of July.
Mill availability at 87.8% in the second quarter of 2008 declined
slightly versus 89.9% for the same period last year. A total of
1,154,842 tonnes of ore were processed during the second quarter for an
average of 12,691 tonnes per day (tpd) at a palladium recovery rate of
75.3%, compared to 1,244,067 tonnes or 13,671 tpd at a recovery of
73.5% in the same period last year.
During the quarter, the underground mine continued to deliver
consistent results and high grades. Underground tonnage averaged 2,117
tpd for the quarter versus an average of 2,141 tpd in the same quarter
a year ago. Palladium head grade from the underground improved to 5.82
g/t compared to 5.36 g/t in the same period last year.
--------------------------------------------------------------------------- Second Quarter --------------------------------------------------------------------------- Palladium 2008 2007 --------------------------------------------------------------------------- Ore Milled (tonnes) 1,154,842 1,244,067 --------------------------------------------------------------------------- Ore Milled (tpd) 12,691 13,671 --------------------------------------------------------------------------- Head Grade (g/t) 2.35 2.26 --------------------------------------------------------------------------- Recovery (%) 75.3 73.5 --------------------------------------------------------------------------- Mill Availability (%) 87.8 89.9 --------------------------------------------------------------------------- Production (oz) 65,791 66,651 --------------------------------------------------------------------------- By-Product Metals --------------------------------------------------------------------------- Platinum (oz) 5,093 5,904 --------------------------------------------------------------------------- Gold (oz) 5,026 4,739 --------------------------------------------------------------------------- Nickel (lbs) 873,406 716,096 --------------------------------------------------------------------------- Copper (lbs) 1,515,479 1,310,484 ---------------------------------------------------------------------------
North American Palladium has not
hedged any of its current or future production.
About North American Palladium
North American Palladium is one of North America's
largest producers of palladium. The Company's core palladium business
at the Lac des Iles Mine is strengthened by a significant contribution
from platinum, nickel, gold and copper by-product metals. The Company
is actively progressing its three advanced
exploration projects: the Offset High Grade Zone at its Lac des Iles
Mine, the Shebandowan West Project, located approximately 100 kilometres
from the mine, and the Arctic Platinum Project in Finland.
Please visit www.napalladium.com for more information.
Forward-Looking Statements
Certain information included in this press release, including any
information as to our future financial or operating performance and
other statements that express management's expectations or estimates of
future performance, constitute 'forward-looking statements' within the
meaning of the 'safe harbor' provisions of the United States Private
Securities Litigation Reform Act of 1995 and Canadian securities laws. The
words 'expect', 'believe', 'will', 'intend', 'estimate' and similar
expressions identify forward-looking statements. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management, are
inherently subject to significant business, economic and competitive
uncertainties and contingencies. These statements are based on certain
factors and assumptions, including but not limited to, the assumption
that market fundamentals will result in increased palladium demand and
prices and sustained by-product metal demand and prices; the integrated
operation of the Company's underground mine and the open pit mine
remain viable operationally and economically; financing is available on
reasonable terms; expectations for blended mill feed head grade and
mill performance will proceed as expected; new mine plan scenarios will
be viable operationally and economically; and plans for mill
production, sustainable recoveries from the Lac des Iles mine,
exploration at Lac des Iles and elsewhere will all proceed as expected.
The Company cautions the reader that such forward-looking statements
involve known and unknown risks, uncertainties and other factors that
may cause the actual financial results, performance or achievements of
North American Palladium to be materially different from the Company's
estimated future results, performance or achievements expressed or
implied by those forward-looking statements and that the
forward-looking statements are not guarantees of future performance. These
risks, uncertainties and other factors include, but are not limited to:
metal price volatility; economic and political events affecting metal
supply and demand; changes in the regulatory environment; fluctuations
in ore grade or ore tonnes milled; geological, technical, mining or
processing problems; future production; changes in the life-of-mine
plan or the ultimate pit design; availability and increasing costs
associated with mining inputs and labour; the speculative nature of
exploration and development, including the risks of diminishing
quantities or grades of mineral reserves; adverse changes in our credit
rating; and the risks involved in the exploration, development and
mining business. These factors are discussed in greater detail in the
Company's most recent Form 40-F/Annual Information Form on file with
the U.S. Securities and Exchange Commission and Canadian 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.
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