North American Palladium Ltd. said June 7 that a feasibility study on its Lac des Iles palladium mine in Ontario estimated a posttax net present value, at an 8% discount, of C$470 million, resulting from cash flow of C$678 million.
The study includes a new life-of-mine plan for Lac des Iles, with increased production rates, effective July 1.
The new mine plan incorporates updated proven and probable reserves, which recently increased by 18 million tonnes to 38.5 million tonnes grading 2.25 g/t for 2.8 million ounces of contained palladium.
Lac des Iles is expected to produce an average 214,400 payable ounces of palladium per year over a 9.5-year mine life, with all-in sustaining costs of US$527 per ounce sold.
During full production, anticipated later this year, mill throughput will increase from 10,860 tonnes per day to 12,250 t/d to produce an average 237,000 ounces of palladium per year.
CapEx over the life of the mine is estimated at C$303 million, including closure costs, while EBITDA is forecast at C$1.06 billion from total revenue of C$2.87 billion.
"The operational turnaround at [Lac des Iles] is now largely complete with ... higher and more consistent production from the underground mine, a planned return to full-time mill operations in the fall of this year, and a resumption of surface mining early next year," North American Palladium President and CEO Jim Gallagher commented.
"Current operations and the [life-of-mine] plan are both enhanced by palladium prices that are nearing record levels."