North American Palladium (NAP) has reported a significant increase in the mineral resource estimate for the Offset Zone at its Lac des Iles (LDI) palladium mine in Northwest Ontario, Canada.

Measured and indicated resources total 14.5 million tonnes, marking a 68 per cent increase. The firm said this contains 2.5 million ounces of palladium, a 41 per cent increase.

Inferred resources in the Offset Zone now total 3.1 million tonnes containing 500,000 oz of palladium.

NAP said the increased resources demonstrate the potential to significantly extend the life of the LDI mine.

The figures do not include drilling data from the newly discovered Cowboy, Outlaw and Sheriff zones, as NAP said there is insufficient information as yet.

However, the miner claimed that there is "significant potential" to increase LDI's mineral reserves and resources with additional step-out drilling on the Offset Zone, possible Roby Zone extensions and through additional drilling on the Cowboy, Outlaw and Sheriff zones.

"The new resource estimate for the Offset Zone demonstrates the leverage that LDI has to a stronger palladium price environment," commented William J Biggar, NAP president and chief executive officer.

"Most of the 2010 drill data used for the resource update was from infill drilling, aimed at improving our knowledge of the deposit for our updated mine expansion plan and commencement of mining in the Offset Zone in 2012."

Source:

North American Palladium Updates Palladium Mineral Resources (13/06/11) 

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