North American Palladium

Exploration

Oct 16, 2014
Exploration is central to Lac des Iles’ (LDI) future and will represent an important part of future growth for the mine and for the Company. Situated in unique geology, the LDI deposit is truly one-of-a-kind and it warrants continued exploration. The exploration success achieved during the past few years gives management great encouragement that there is strong potential to continue to grow the Company’s palladium reserve and resource base through exploration.
 
LDI’s substantial 62,400-acre underexplored land package offers exploration upside that is further complimented by the underutilized, large 15,000-tonne per day mill and existing permits and surface infrastructure. Beyond the mine expansion which is predominately based on the Offset Zone, there remains significant exploration upside near the mine, where a number of recent discoveries can potentially increase production at LDI.
 
As an established PGM producer with a clearly defined strategy for growth, NAP is well positioned to convert exploration success into production and cash flow on an accelerated timeline.
 
 
2012 EXPLORATION PROGRAM
 
NAP continues to invest in exploration to expand the reserves and resources at LDI and to identify new targets. The primary focus of the exploration program for 2012 is underground exploration at LDI targeting the Offset Zone, to conduct infill drilling as well as to test extensions of the Offset Zone mineralization towards surface, at depth, and to the south. In addition, drilling has been planned at North LDI, the North VT Rim and other potential zones within the LDI land package. The Company’s 2012 exploration budget is set at $16 million ($10 million of which is in connection with the LDI mine expansion drilling and is included in the Company’s $116 million capital expenditure budget).
 
Please visit the News Releases page for an update on recent exploration results.

 
LDI ZONES & MINERALIZED AREAS
 
NAP’s renewed commitment to exploration over the past couple of years has paid off, with a number of recent discoveries that can potentially increase annual production rates and extend LDI’s mine life.
 
Roby Zone: currently being mined – underground and through the open pit. Potential expansion opportunities are currently under review.
 
Offset Zone: discovered in 2001, located below and approximately 250 metres south west of the Roby Zone. The Offset Zone remains open in all direction and continues to expand through exploration. LDI mine expansion is currently underway to access Offset Zone ore.

Cowboy Zone*: discovered in 2009 during infill drilling of the Offset Zone, located 30 to 60 metres to the west of the Offset Zone. This new discovery has the potential to extend LDI’s mine life and could potentially impact the economics of the mine.

Outlaw Zone*: discovered in 2009, located to the west of the Offset Zone and the Cowboy Zone.

Sheriff Zone*: discovered in 2010, located approximately 100 metres south east of the Offset Zone. 2012 surface drilling confirmed the zone extends to surface.

West Pit Target*: a 2009 surface exploration program identified a mineralized area near surface and adjacent to the Roby Zone open pit called the West Pit.

North VT Rim Target*: drilling and trenching results indicate the presence of a zone of anomalous palladium assays which follows the contact with the Roby Zone to the east.

*The disclosure regarding these mineralized areas is conceptual in nature and there has been insufficient exploration to define a mineral resource in any of these areas. The current LDI mine plan does not include the three nearby underground zones: Cowboy, Outlaw, and Sherriff.
 
In recognition of the Lac des Iles mine's outstanding safety performance in 2011, LDI has been selected by the Ontario Mining Association as the recipient of the 2011 John T. Ryan, Ontario Regional Safety Trophy in the metal mine category. The award recognizes LDI's safety excellence demonstrated by all employees throughout 2011 who achieved the lowest reportable injury rate among Ontario's metal mines.

Source: http://www.napalladium.com/operations/exploration/default.aspx

October 16, 2014
Inside this issue
IT Systems Analyst

Key responsibilities of the IT Systems Analyst include application and end user support with technical issues; technical analysis and design; and support of operations staff in executing, testing and rolling-out the solutions, and managing the daily activities of configuration and operation of business systems.

Junior Engineer

Reporting to the Tailings Management Facility Superintendent, the Junior Engineer’s responsibilities will be daily tailings dam safety inspections, providing engineering support, managing civil earthworks projects associated with tailings dams and other related civil infrastructure, and assisting in the administration of the project including contractor monthly claims, design changes, and project change notices.

Production Geologist

Reporting to the Chief Geologist or designate, the successful candidates will work a 14 day on/14 day off rotation at the Lac des Iles mine site.