TSX: PDL
www.napalladium.com
Mr. Jim Gallagher reports:
TORONTO, Jan. 26, 2018 (GLOBE NEWSWIRE) -- North American Palladium Ltd. ("NAP" or the "Company") (TSX:PDL) (OTC PINK:PALDF) today announced positive production results for the full year and provided guidance as to payable palladium production for fiscal 2018.
In 2017, the Company produced a total of 201,592 ounces of payable palladium. This surpasses the Company's previously stated 2017 guidance of between 180,000-190,000 ounces. Since August 2017, the average daily underground production rate was at or above 6,000 tonnes per day, including an average of 6,450 tonnes per day in December. The mill successfully returned to full-time operation in the fourth quarter with underground production supplemented with low-grade surface stockpiles for an average milling rate of 11,274 tonnes per day during the quarter.
"2017 was a year of significant accomplishments for the Lac des Iles mine," stated Jim Gallagher, President and CEO of North American Palladium. "We exceeded our production guidance for palladium ounces with record underground production levels and by returning the mill to full-time operations in the fourth quarter. Several other key accomplishments for the year include:
Our safety record continued to improve with a total medical injury frequency of 2.7 against an Ontario mining industry average of approximately 3.5; only one lost time injury occurred during the year.A new water management facility was commissioned to contain all site water and tailings runoff and return clean water to the mill.Established our own surface earthworks crew and completed two significant tailings dam raises to a high-quality standard, on schedule and at a lower cost than the previous construction contractor. This involved the hiring of over 60 new employees and the purchase of a large fleet of haulage equipment.Completed the engineering, pre-stripping and initial production blasting for the new Sheriff open pit ahead of the original schedule.Sublevel Shrinkage mining ("SLS") in the lower part of the mine successfully ramped up to a steady state average production rate of approximately 4,000 tonnes per day.Began construction of a tailings thickener adjacent to the mill that will significantly improve water management and tailings placement.Published a 43-101 compliant feasibility study that included, among other things, a pushback of the existing Roby pit, extended the mine life to 9.5 years and demonstrated a robust business plan."Following the publication of the feasibility study in mid-2017, the Company's technical team began evaluation of the upside opportunities identified in the study. Significant among these was the option to forego the open pit pushback in favour of an underground mass mining approach, which would potentially recover mineral resources excluded from the pit mining shapes in a more selective fashion. A preliminary internal study has been completed which indicates the potential to further extend the life of mine by increasing the total tonnes mined at slightly better grade with an overall improvement in the business case. The site team, supported by external consultants, will advance the level of engineering on this option in 2018 before making a final production decision. Initial pre-stripping of the Roby pit, which was to begin in the latter part of 2018 will be deferred pending this decision.
"In 2018, we look forward to capitalizing on the operational and financial improvements we have already made and on the additional opportunities we have identified. We expect to increase our payable palladium production again to between 230,000 and 240,000 ounces. This increased production combined with palladium prices at record levels suggests a very good year for North American Palladium in 2018," added Mr. Gallagher.
2018 Guidance
In 2018, the Company expects production of between 230,000-240,000 ounces of payable palladium.
Fourth Quarter Results
NAP will announce fourth quarter 2017 financial results for the three months and year ended December 31, 2017 after market close on Thursday February 22, 2018. Following the release, the Company will host a live webcast and conference call on Friday, February 23, 2018 at 8:30 a.m. ET.
Conference Call and Webcast Details:
| Date: | Friday, February 23, 2018 | |
| Time: | 8:30 a.m. ET | |
| Dial In: | North America: 1-800-319-4610 International: 1-604-638-5340 | |
| Webcast: | http://services.choruscall.ca/links/nap20180223.html | |
| Replay: | North America: 1-604-674-8052 International: 1-855-669-9658 | |
| Replay Passcode: | 2021 |
The conference call replay will be available until March 23, 2018. A recording of the conference call will be available within 24 hours following the call at the Company's website.
About North American Palladium Ltd.
North American Palladium Ltd. (TSX: PDL) (OTC PINK: PALDF) is a Canadian company with over 20 years of production at Lac des Iles mine, located northwest of Thunder Bay, Ontario. North American Palladium is the only pure play palladium producer in the world. With over 500 employees, Lac des Iles mine features a unique world class ore body and modern infrastructure, including both an underground mine and an open pit mine.