News Release - February 25, 2010
10-06-NAP
TSX: PDL
NYSE Amex: PAL
North American Palladium Announces 2009
Fourth Quarter and Year-End Results
Precious Metals Diversification Positions NAP for Growth in 2010
Toronto, Ontario - North American Palladium Ltd.
("NAP" or "the Company") today announced financial results and
operational updates for the fourth quarter and year ended December 31, 2009.
"Although
2009 was a challenging year with our Lac des Iles ("LDI") palladium
mine on care and maintenance, I am pleased with the progress made in advancing
our strategic initiatives during the year," said William J.
Biggar,
President & CEO. "We have
successfully evolved NAP into a diversified precious metals company with the
acquisition of the Sleeping Giant gold mine, which reduces operating risk and provides
an additional source of cash flow. With
LDI set to be fully operational again early in the second quarter, NAP is well
positioned to benefit from the continuing upturn in the palladium price cycle
as well as the positive outlook for the gold price."
2009 Highlights
• A recovering
global economy and growing auto and investment demand contributed to a strong
rebound in the price of palladium from US$183 per ounce at the start of the
year to US$393 per ounce at year-end. Due
to the recovery in the palladium price, in December NAP announced the restart
of mining operations at LDI, which is expected to be fully operational in early
Q2;
• Completed
42,000 metres of exploration drilling at LDI, which resulted in the discovery
of two new zones - Cowboy and Outlaw - in close proximity to the Offset Zone;
• The
discovery of the new zones, as well as the palladium grade improvement
encountered during infill drilling in the Offset Zone, resulted in the decision
to commence initial development of the Offset Zone by developing a 1,500 metre
ramp over a depth of 200 metres. The
ramp, which is scheduled for completion at the end of Q4 at a cost of
approximately $16 million, will provide access for the installation of a shaft to
surface to mine the Offset Zone, and facilitate additional underground
exploration;