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The first of the new 60 tonne haul trucks for the underground mine
In March 2004 the Board of Directors approved the development of the underground mine based on a feasibility study. The underground portal was collared and the development of the ramp to the Main Zone ore body began in May 2004.
Commercial production is expected to commence in the first quarter of 2006.
Once in full operation, 2,000 tonnes a day from the underground mine, at an average head grade of 6.62 g/t, will be combined with 13,000 tonnes a day from the open pit operations, to feed the mill an approximate grade of 2.4 g/t. An additional 80 employees will be employed when the operations are in full-swing, bringing the total number of employees at LDI to approximately 380.
Elevations of the underground mine (in respect to the open pit):
- The elevation at the top of the open pit is about 500 metres above sea level (masl).
- The elevation at the portal is 337 masl.
- The elevation of the first drill level is 170 masl.
- The elevation of the first haul level is 130 masl.
- The bottom of the Main Zone is -150 masl.
- The bottom of the Main Zone is 487 m below the portal.
- The bottom of the Main Zone is about 650 m below the top of the pit.
- The first drill level is about 167 m below the portal.
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Figure 7.3 taken from the first volume of the Feasibility Study shows the elevations. |
Figure 4.5 taken from the first volume of the Feasibility Study shows the Offset Zone, which has future potential. |
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| Underground Reserves and Resources as of December 31, 2004. |
Tonnes |
Pd |
Pt |
Au |
Cu |
Ni |
Pd |
Pt |
| (1,000) |
(g/t) |
(g/t) |
(g/t) |
(%) |
(%) |
(000 oz) |
(000 oz) |
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| Reserves |
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Probable |
3,542 |
6.62 |
0.40 |
0.34 |
0.07 |
0.08 |
754 |
46 |
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| Resources (In addition to Reserves) |
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Indicated |
600 |
7.00 |
0.39 |
0.29 |
0.06 |
0.07 |
135 |
7 |
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Inferred Resources |
5,367 |
6.10 |
0.34 |
0.33 |
0.07 |
0.12 |
1,052 |
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- CIM definitions for mineral resources and mineral reserves were used to estimate the Lac des Iles mineral resources and reserves.
- Resources which are not reserves do not have demonstrated economic viability.
- Mineral reserves and resources are calculated at a cut-off grade of 1.1 grams and 4.5 grams of Palladium per tonne for the open pit and for the underground respectively, assuming an average long-term Palladium price of US$275 per ounce and including by-product metal credits.
- Douglas Kim prepared the reserves and resources estimate for the open pit. Douglas Kim is "qualified person" as defined in NI 43-101 and is employee of the Company.
- Graham G. Clow, P. Eng., and David W. Rennie, P. Eng., of Roscoe Postle Associates Inc., an independent geological mining engineering consulting firm, prepared the underground reserves estimate and D.Kim prepared the underground resources estimate.
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