North American Palladium has announced production at the Lac des Iles mine will reach 250,000 oz of palladium per year until 2018.

The results came from a preliminary economic assessment of its Offset High Grade Zone and the study indicates the viability of extending the underground mining operations to 2018.

According to the study mining at a rate of 4,000 to 7,000 tonnes per day using a series of conveyors and access ramps would cost about C$37 million.

"The result from this preliminary economic assessment demonstrates that we could have another decade of underground mining at Lac des Iles," said Jim Excell, President and Chief Executive Officer of the firm.

"An advantage of this project is that we expect to fund development from 2011 onward from the positive cash flow the project will generate," he added.

Mr Excell also said the good market for platinum group metals is causing the firm to assess the economic viability of a southern extension of the open pit.

He said this would "prolong the mine life of the open pit by an additional two to three years".

Source:

North American Palladium Preliminary Economic Assessment Confirms Long Term Potential of Offset High Grade Zone, 07/05/08
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