North American Palladium Updates on Lac des Iles’ Reserves, Resources

North American Palladium Ltd. (TSX:PDL,NYSEMKT:PAL) provided an update on the mineral reserve and resource estimates for its Ontario-based Lac des Iles mine property. It also released updated information about its life of mine plan for the property.

Highlights include:

• Of the total reserve, underground reserve accounts for 9.2 million tonnes at a diluted grade of 3.9 g/t Pd. Total reserve is 15.0 million tonnes at a grade of 2.8 grams per tonne (‘g/t’) palladium (‘Pd’) which now includes salvage mining in the open pit and a portion of the low grade stockpile on surface.
• Total reserves increased by 140,000 of contained Pd to 1.3 million ounces. This is an increase of 12% compared to the previous technical report.
• Total resources increased by 860,000 ounces of contained Pd to a total of 3.9 million ounces. This is an increase of 28% compared to the previous technical report.
• Utilizing only proven and probable reserves, the current Life of Mine (‘LOM’) increases by one year to 2019 with annual production peaking over 200,000 payable ounces and a total mined reserve of 1.1 million payable Pd ounces, an increase of approximately 34% from the 2013 technical report. This plan does not include the potential shaft extension to access the lower Offset zone. Management will focus on advancing work to potentially extend the LOM through the future successful conversion of resources into reserves.

Phil du Toit, president and CEO of North American Palladium, commented:

We are pleased with the overall increase in contained palladium ounces in our reserves and resources and the improved economics of our updated life of mine plan for LDI. Our operations are performing well year to date and the fundamentals for the palladium market remain favorable. As we continue through 2014 we will focus on continued operational improvements, lowering unit costs and further diamond drilling to potentially convert our large mineral resource to reserves.

Click here to read the full North American Palladium Ltd. (TSX:PDL,NYSEMKT:PAL) press release.