North American Palladium Ltd.
TSX : PDL
AMEX : PAL

North American Palladium Ltd.

October 30, 2006 09:00 ET

North American Palladium Ltd.-Phase One Drill Results from Narkaus 'SK' Project Confirms Additional Resource Potential at Arctic Platinum JV, Finland

TORONTO, ONTARIO--(CCNMatthews - Oct. 30, 2006) -

This news release contains forward-looking statements. Reference should be made to "Forward-looking Statements" at the end of this news release

North American Palladium Ltd. ("NAP")(TSX:PDL)(AMEX:PAL) is pleased to announce the results of the first phase of drilling on the Narkaus (SK) Project at the Company's Arctic Platinum Project ("APP") with Gold Fields Limited ("Gold Fields"), located 60 km south of the major regional centre of Rovaniemi, Finland.

The Narkaus (SK) Project comprises three target areas: 1) Kuohunki, 2) Nutturalampi and 3) Siika Kama and is being evaluated for its accretive potential and positive impact on the Joint Venture's main project at Suhanko. The Suhanko Project is located within 20 kilometres of these deposits and is the subject of ongoing pre-feasibility work.

The US $6 million Phase One program which began in February of this year, comprised a total of 49 diamond drill holes for 8,717 metres. Highlights from the project drill program include:



Kuohunki Potential (open-pit)
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2PGE+
FROM TO INTERVAL Au
HOLE (metres) (metres) (metres) Pd g/t Pt g/t Au g/t Cu % Ni % g/t
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KUO-106 37.22 50.00 12.78 4.672 1.121 0.106 0.214 0.082 5.900
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KUO-110 30.41 46.00 15.59 2.797 0.640 0.118 0.256 0.097 3.555
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KUO-120 29.22 45.00 15.78 3.279 0.811 0.130 0.191 0.080 4.220
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and
KUO-120 84.00 98.00 14.00 2.385 0.579 0.122 0.190 0.052 3.086
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KUO-122 86.00 90.55 4.55 3.217 0.984 0.044 0.031 0.087 4.245
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KUO-123 19.28 22.40 3.12 3.198 0.842 0.194 0.063 0.073 4.235
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KUO-125 68.15 72.69 4.54 4.161 1.055 0.095 0.163 0.112 5.311
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Nutturalampi Potential (open-pit)
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NL-67 38.89 40.33 1.44 5.927 1.997 0.279 0.012 0.073 8.202
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and NL-67 64.76 66.30 1.54 8.095 2.065 0.230 0.274 0.071 10.391
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and NL-67 73.00 82.00 9.00 2.572 0.614 0.110 0.068 0.066 3.296
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NL-74 61.00 69.07 8.07 2.997 0.876 0.146 0.089 0.090 4.019
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NL-75 17.92 26.00 8.08 5.081 1.434 0.389 0.215 0.089 6.905
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NL-77 66.00 71.37 5.37 3.337 0.982 0.276 0.204 0.123 4.596
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NL-81 37.00 40.69 3.69 7.976 2.737 0.328 0.203 0.165 11.041
---------------------------------------------------------------


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Siika Kama Potential
(open-pit)
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2PGE+
FROM TO INTERVAL Au
HOLE (metres) (metres) (metres) Pd g/t Pt g/t Au g/t Cu % Ni % g/t
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SII-108 56.61 71.00 14.39 2.816 0.665 0.091 0.142 0.037 3.572
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SII-117 43.42 50.00 6.58 12.135 3.017 0.552 0.317 0.137 15.704
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and
SII-117 100.00 103.00 3.00 5.063 1.378 0.182 0.179 0.068 6.623
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SII-118 37.97 73.00 35.03 3.639 0.846 0.170 0.246 0.083 4.655
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(under-
ground)
SII-105 196.00 197.00 1.00 24.900 5.64 1.100 0.739 0.144 31.640
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and
SII-105 208.00 212.00 4.00 8.395 1.813 0.250 0.592 0.164 10.458
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SII-112 307.80 315.20 7.40 7.623 1.850 0.270 0.396 0.202 9.742
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SII-115 196.00 197.00 1.00 24.900 5.640 1.100 0.739 0.144 31.640
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and SII
-115 238.00 239.51 1.51 5.391 1.205 0.096 0.240 0.081 10.105
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Drill holes are inclined. True widths average 80-90% of drilled widths.
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(A full table of results and location maps are appended hereto and will be made available on the Company's website.)

http://www.ccnmatthews.com/docs/pdltable.pdf

While the mineralized zones within the Narkaus intrusive are considerably smaller than those at Suhanko, they are higher in grade. These latest results are being modeled and an updated mineral resource estimate will be completed and incorporated into the larger APP scoping study currently scheduled for completion in early to mid 2007.

North American Palladium has contracted Aker Kvaerner ASA to complete the APP re-scoping study and P&E Mining Consultants Inc. to conduct the open-pit designs and optimization. Metallurgical test work is being conducted by SGS Lakefield Research to examine different processing options in an attempt to improve metal recoveries and reduce operating costs.

Platinum Group Elements along with copper-nickel mineralization were first discovered in the area by Outokumpu Oy in 1964 during a regional Cu-Ni exploration program and further explored by Gold Fields between 2001 and 2004. In 2005, Gold Fields completed a feasibility study on the Suhanko Project comprising the advanced stage Konttijarvi and Ahmavaara Open Pit Projects.

Diamond drill core is transported by joint venture personnel from the various project sites to Rovaniemi, Finland for logging and splitting with the split samples transported to GTK (Finnish Geological Survey) an accredited laboratory for sample preparation and analysis. At GTK precious metals are analysed utilizing a standard fire assay with ICP-OES finish and base metals are analysed utilizing an aqua-regia digestion and ICP-OES finish. Bruce W. Mackie, Vice President of Exploration for North American Palladium Ltd. is the Qualified Person who supervised the work carried out on the Arctic Platinum Project.


North American Palladium's Lac des Iles Mine is Canada's only primary producer of platinum group metals and is among the largest open-pit/underground palladium mining operations in the world. The Mine also generates substantial revenue from platinum and by-product metals including nickel, gold and copper. NAP is focused on expanding its production profile through joint ventures in Canada and the Arctic Platinum Project in Finland. Palladium's catalytic qualities are expected to play an increasing role in the automotive industry in response to growing concern for global environmental solutions, in fuel cell technology for alternative energy sources and a burgeoning jewellery market, while continuing to have widespread application in the dental, electronics and chemical sectors.

Forward-Looking Statements - Certain statements included in this news release are forward-looking statements within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation including the Securities Act (Ontario), relating to the objectives, plans, strategies and results of operation of the Company including words to the effect that the Company or management expects a stated condition or result to occur. When used herein, words such as "expect", "continue", "will", "attempt", "scheduled" and other similar expressions as they related to the Company or its management, are intended to identify forward-looking statements. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including but not limited to, the assumption that plans for exploration in Finland will proceed as expected. Any forward looking statements in this news release involve inherent risks and uncertainties and are subject to factors, many of which are beyond our control, which may cause actual results or performance to differ materially from those currently anticipated in such statements. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include among others (1) metal price volatility, (2) economic and political events affecting metal supply and demand, and (3) geological or technical mining problems. For a more comprehensive review of risk factors, please refer to the "Risks and Uncertainties" section of the Company's most recent interim Management Discussion and Analysis and most recent Annual Report under "Management's Discussion and Analysis of Financial Results" and Annual Information Form under "Risk Factors" on file with the U.S. Securities and Exchange Commission and Canada provincial securities regulatory authorities. The Company disclaims any obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise. Readers are cautioned not to put undue reliance on these forward-looking statements.

Please note: There are maps available on CCNMatthews' website at the following link:

http://www.ccnmatthews.com/docs/palmaps.pdf

Contact Information

  • North American Palladium Ltd.
    Jim Excell
    President & CEO
    (416) 360-2656
    or
    North American Palladium Ltd.
    Bruce W. Mackie
    Vice-President of Exploration
    (416) 360-2659
    or
    North American Palladium Ltd.
    Donna Yoshimatsu
    Director, Investor Relations
    (416) 360-2652
    Website: www.napalladium.com