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NEWS RELEASE TRANSMITTED BY CCNMatthews
FOR: NORTH AMERICAN PALLADIUM LTD.
TSE SYMBOL: PDL
MARCH 03 2000 - 15:27 EDT
North American Palladium Ltd. Labour Negotiations
Successful - Six Year Bargaining Agreement With
Steelworkers Union Assures Stability For Major Project
Expansion
North American Palladium Ltd. is pleased to advise that the
members of the United Steelworkers of America Local 9422 have
ratified a six year collective labour agreement. Under the terms
of the agreement workers will receive a minimum of 16% wage
increase over the life of the agreement with an immediate 6% upon
ratification. There is also a re-opener clause in the agreement
where an additional 6% in wages can be obtained through interest
arbitration during the last 36 months of the agreement.
Improvements to seniority, dental plan improvements, layoff
enhancements and recall rights are contained in the agreement.
This agreement will assist the Company in proceeding with its
expansion plans including a new concentrator and mine complex.
A positive feasibility study was completed by AGRA Simons on the
proposed major expansion of the Lac des Iles open pit palladium
mine in late 1999. The study supports an expansion of the
operation to 15,000 tonnes per day from the current 2,400 tonnes
per day. The expanded operation is expected to produce an annual
average of 248,900 ounces palladium, 24,200 ounces platinum,
19,100 ounces gold, plus copper, nickel and cobalt over an eleven
year mine life.
Subject to the availability of financing and environmental
permits, the Company anticipates construction start-up in March
2000, with concentrator commissioning in second quarter 2001. The
expansion capital is estimated at US$126.5 million. The capital
cost includes a new concentrator, larger primary and ancillary
mining equipment, pre-production stripping, expanded tailings
management facility and new site infrastructure.
OPERATIONS
During 1999 the mine produced 1,401,937 tons of ore and 4,536,186
tons of waste. Compared to 1998, ore production increased by
45.5% and waste production increased by 4.9%. Low-grade ore mined
in 1999 was stockpiled.
The concentrator processed 894,168 tons during 1999 resulting in
64,441 ounces of palladium being shipped to the smelter. Compared
to the same time period in 1998, palladium production decreased
by 23.5%. The reduction in palladium production for the year was
due to mining lower grade breccia ore because of mining position.
Ore mined during the year was 26.4% lower in grade than ore mined
in 1998. The lower head grade was marginally offset by higher
throughput.
PRODUCTION STATISTICS
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Percentage
Change
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Year 1999 1998
Palladium (troy oz) 64,441 84,228 -23.5%
Platinum (troy oz) 4,744 5,535 -14.3%
Gold (troy oz) 4,888 5,079 -3.8%
Copper (lbs) 1,377,464 1,229,309 +12.1%
Nickel (lbs) 973,817 914,030 +6.5%
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Ore Tons Milled 985,651 947,924 +4.0%
Ore Tons Mined 1,401,937 963,332 +45.5%
Waste Tons Mined 4,536,186 4,325,169 +4.9%
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The Lac des Iles Mine is located 85 km north of Thunder Bay,
Ontario and is Canada's only primary producer of platinum group
metals and one of the largest platinum group metals deposits in
the world. Palladium is a vital and essential component in the
production of auto catalysts, which significantly reduce harmful
automobile emissions. World demand for palladium continues to
increase as a result of legislation enforcing stricter vehicle
emission limits.
For further information contact:
Keith C. Minty - President & CEO
Tel: (807) 624-0960 Ext. 14 Fax: (807) 624-0961
or
George D. Faught - Vice President Finance & CFO
Tel: (416) 232-9532 Fax: (416) 207-9288
Forward Looking Statements - Some statements contained in this
release are forward-looking and, therefore, involve uncertainties
or risks that could cause actual results to differ materially.
Such forward-looking statements include comments regarding the
Lac des Iles project expansion, financing, permitting and
performance. Factors that could cause actual results to differ
materially include metal price volatility, economic and political
events affecting metal supply and demand, fluctuations in ore
grade, ore tons milled, geological, technical, mining or
processing problems, future results of exploration programs, lack
of required permits and availability of financing. The Company
disclaims any obligation to update forward looking statements.
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