TORONTO (miningweekly.com) – Toronto-based North American Palladium has increased the indicated resource estimate at the Offset zone of its Lac des Iles platinum-group metals (PGMs) mine, in Thunder Bay, Ontario, by 280%, the company announced on Tuesday.

The indicated resource for the Offset high-grade zone is now 12,3-million tons. The zone is the fault displaced extension of the Roby deposit which has been mined underground since 2006 and has a remaining mine life of two years.

A preliminary assessment in May last year estimated that the Offset zone could be mined for up to ten years, and may yield an annual production of 250 000 oz of palladium, 16 000 oz of platinum, 17 000 oz of gold, 2-million pounds of nickel and 4-million pounds of copper.

A detailed prefeasibility study is currently under way, and should be completed by mid-year, the firm said on Tuesday.

The Lac Des Iles mine was shut in October last year, as it was losing money because of low PGMs prices.

However, in the meantime, the company plans to conduct an “aggressive” drilling programme this year, to identify further resources, increase the mine life of Lac des Iles and help with planning for future mine development.

North American Palladium had $106-million in working capital at the end of September, and has “minimal” debt.

The firm will take advantage of its strong balance sheet “as it also evaluates acquisition and joint-venture opportunities in 2009”.

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