North American Palladium announced this week that it will boost its palladium production by 75 per cent at the Lac des Iles, Ontario project.

This will take production from 95,100 oz in 2010 to between 165,000 and 175,000 oz this year, after earmarking capital expenditures of $147 million (£92.4 million) for the mine expansion.

William J Biggar, president and chief executive officer of North American Palladium, said the company plans to substantially increase its palladium and gold production over the next two years to achieve the aims of becoming a mid-tier precious metals producer.

"During this transition period, we will invest over a quarter of a billion dollars in our mine expansions, exploration, and the development of our gold properties, thereby creating significant value for our shareholders," he commented.

North American Palladium has also devoted an exploration budget of $18 million (£11.3 million) in Ontario and Quebec in an effort to increase palladium and gold reserves.

In November, the company reported a return to profitability in the third quarter of 2010 after reducing cash costs at Lac des Iles.

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N American Palladium to up production by 75 pct (20/01/11)

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