North American Palladium Ltd.
TSX : PDL
NYSE Amex : PAL

North American Palladium Ltd.

November 17, 2010 16:47 ET

North American Palladium Provides LDI Exploration Update: New Zone Discovered; Offset and Cowboy Zones Extended

TORONTO, ONTARIO--(Marketwire - Nov. 17, 2010) - North American Palladium Ltd. ("NAP") (TSX:PDL)(NYSE Amex:PAL) today provided an update on the drill results from its 2010 exploration program at the Company's flagship Lac des Iles ("LDI") palladium mine in Northern Ontario. These results (see appendix) are the second tranche of drill results from the 2010 drill program underway at LDI.

Highlights:
  • New PGM zone, named the Sheriff Zone, was intersected approximately 100 metres south east of the Offset Zone
  • Continued positive drill results throughout the Offset Zone (including 122 metres of 4.4 g/t Pd)
  • Offset Zone continues to extend higher towards surface and to the north by 50 metres
  • Cowboy Zone intersected again in Offset drilling
  • Deep drilling results indicate Offset and Cowboy zones are completely open at depth
  • Roby resources reclassified as reserves following start of production

"This second release of positive drill results from our 2010 exploration program confirms our belief that LDI has considerable exploration upside," said William J. Biggar, President and CEO. "We are very excited with the discovery of the new Sheriff Zone, which in addition to the Cowboy and Outlaw zones, has the potential to increase annual production rates and extend LDI's mine life."

Mr. Biggar added: "The exploration success we have had at LDI during the past two years gives me great encouragement that we have tremendous potential to continue to grow our reserve and resource base through exploration. As we pursue our organic growth strategy through our mine expansion, exploration will continue to be a key focus."

NAP's $15 million 2010 exploration program at LDI initially included 53,000 metres of drilling aimed at expanding the size of the Offset and Roby zones, increasing the grade of the Offset Zone mineralization and exploring the West Pit and other surface areas. Following the exploration success from the first tranche of drill results (20,500 metres) that were released on June 7, 2010, the Company has completed a further 35,000 metres of drilling, for a total of approximately 55,000 metres. Exploration at LDI is ongoing, expected to include approximately 7,000 more metres prior to year end.

Since the beginning of 2010 until October 1, 2010, five drills have completed 148 holes at LDI, totaling 55,325 metres, of which:
  • 38 holes (8,925 metres) were completed from underground on the extension of the Roby Zone;
  • 83 holes (36,355 metres) were completed on the Offset Zone including:
  (i) Underground, on the upward extension of the Offset Zone (mine elevation 4900 and higher - "Upper Offset Zone");
  (ii) On the Central Offset Zone to complete the previous drilling pattern and to follow its northern extension; and
  (ii) From surface with directional drilling, with the first deep holes into the Lower Offset Zone (mine elevation 4650 and lower);
  • 6 holes (5,740 metres) were completed from surface on the new south-east zone (the Sheriff Zone); and
  • 10 holes (4,305 metres) were completed from surface on the Creek Zone and West Pit Area.

Complete drill results are included in the appendix of this news release. Elevations referred to in this news release are presented in the mine grid in Figure 1, and the drill locations are presented in Figure 2, available online at NAP's website at www.nap.com/explore_ldi.htm.

Roby Zone Extension

As announced in the last exploration update (see June 7, 2010 news release), the 2010 underground drill campaign extended the Roby Zone by approximately 100 metres north and at depth. The encountered mineralized area is located immediately adjacent to the underground infrastructure that is currently utilized for production from the Roby Zone, which is presently mined at a rate of 2,600 tonnes per day. Additional drilling tested the limit of the extension and mine planning is underway to access the area. 

Some of the most encouraging new drill results include:
 
Hole   Length of Intersection   Grade (g/t Pd)
10-161   17 metres   11.1
    Including 3 metres   36.5
    Including 3 metres   10.9
10-162   3 metres   9.2

The Sheriff Zone

NAP is pleased to announce the discovery of a new underground mineralized zone (the Sheriff Zone) that was intersected during the Company's surface directional drilling campaign. The Sheriff Zone is located sub-parallel to the Offset Zone and approximately 100 metres south east of the Offset Zone. 

In March 2010, while awaiting the advance of the development ramp into the Offset Zone (which now allows for further infill drilling from underground), the Company commenced a surface directional drilling campaign with two drills. The objective was to drill deep holes around the 4450-4650 elevation of the Offset Zone. As previously announced in the June 7, 2010 news release, hole 10-501 (which was originally targeting the south part of the Offset Zone) intersected an unknown 8-metre interval commencing at 701 metres down hole. A second directional hole (10-502) intersected the same mineralized area at 703 metres. Subsequently, additional drilling resulted in new intersections around this mineralized interval.

The table below sets out the drill results encountered on the Sheriff Zone to date:
 
Hole   Length of Intersection   Grade (g/t Pd)
10-501*   8 metres   9.6
10-502*   5 metres   8.4
10-503   4 metres   7.5
10-006   3 metres   11.0
10-007   5 metres   3.5
10-010   7 metres   2.8
*Drill data from the first tranche of results, previously released on June 7, 2010.

More drilling is planned to establish the continuity and the positioning of this new and potentially economic zone, which remains open in all directions and has the potential to further extend LDI's mine life and improve the economics of the mine. 

A visual of the Sheriff Zone trend is shown in Figure 3, available online at NAP's website at www.nap.com/explore_ldi.htm.

The Offset Zone

The Upper Offset Zone

As reported on June 7, 2010, the underground drilling extended the Upper Offset Zone approximately 50 metres higher on the 4950 elevation, where drilling encountered some of the best results to date. (This mineralized area was not included in the May 27, 2010 resource estimate.) Five holes (10-330 to 10-334) were drilled at elevation 4900 on 15-metre spacing. One of the most encouraging drill results released previously was hole 10-334, which intersected 11 metres grading 8.0 g/t Pd, including 5 metres at a grade of 13.1 g/t Pd.

During the second tranche of drilling, an underground drift was driven across the Offset Zone at elevation 4900 at the location of this reported drilling. The drift ore muck samples grade averaged 10.1 g/t Pd, and confirmed the values intersected in the drill holes. The 5,266 tonnes of Offset Zone's sill ore that were milled during the third quarter returned an average head grade of 9.37 g/t Pd.

"This is the first time that we could access the Offset Zone ore directly and the ore muck sample grade and mill results confirmed the drill predicted grade," said Michel Bouchard, Vice President Exploration and Development.

NAP also continued to drill from the underground mine towards the 5000 elevation. The Offset Zone was intersected and still remains open towards surface. The holes were pushed on toward the west and some encountered the Cowboy Zone and the Outlaw Zone.

Some of the best results include:
 
Hole   Length of Intersection   Grade (g/t Pd)   Location
10-672   8 metres   7.1   Offset Zone
    5 metres   10.7   Cowboy Zone
    6 metres   5.0   Outlaw Zone
10-313   4 metres   4.3   Offset Zone
    4 metres   5.4   Cowboy Zone
10-675   33 metres   5.7   Offset Zone
    Including 6 metres   10.3   Offset Zone
10-676   58 metres   3.6   Offset Zone
    Including 7 metres   8.0   Offset Zone
10-680   8 metres   5.9   Offset Zone
 
Further drilling will continue to follow the upward extension of the Upper Offset Zone, and to further delineate the Cowboy Zone.
 
 
The north extension of the upper part of the Offset Zone was drilled by the 600 series of holes. Some of the best results are:
 
Hole   Length of Intersection   Grade (g/t Pd)   Location
10-610   23 metres   4.7   Offset Zone
    Including 5 metres   9.4   Offset Zone
10-612   51 metres   3.3   Offset & Cowboy zones
    Including 13 metres   6.7   Offset Zone
    Including 7 metres   9.9   Offset Zone
    Including 6 metres   5.6   Cowboy Zone
10-615   24 metres   4.9   Offset Zone
    Including 9 metres   6.2   Offset Zone
10-618   31 metres   5.1   Offset Zone
    Including 7 metres   10.0   Offset Zone
10-621   35 metres   4.9   Offset Zone
    Including 9 metres   8.0   Offset Zone
    Including 6 metres   6.6   Offset Zone
10-623   40 metres   4.5   Offset Zone
    Including 12 metres   8.8   Offset Zone
10-624   36 metres   5.6   Offset Zone
    Including 5 metres   14.1   Offset Zone

The results indicate that the north extension of the Offset Zone and Cowboy Zone are still open.

A visual of the Upper Offset Zone cross-section is shown in Figure 4, available online at NAP's website at www.nap.com/explore_ldi.htm.

Directional Drilling of the Offset Zone

The two surface directional drills were aimed at below elevation 4500 in the north part (holes 10-551 to 10-554) of the Offset Zone, and at the middle elevations (4650) in the south part (holes 10-501 to 10-505) of the Offset Zone.
The following intersections were encountered in the north area:
 
Hole   Length of Intersection   Grade (g/t Pd)   Location
10-552   122 metres   4.4   Offset, Cowboy & possibly Outlaw zones
    Including 12 metres   11.6   Offset Zone
    Including 6 metres   6.9   Cowboy Zone
    Including 9 metres   7.5   Possibly Outlaw Zone
10-553   24 metres   5.0   Offset Zone
    Including 5 metres   9.6   Offset Zone
    Including 17 metres   4.7   Cowboy Zone
    Including 6 metres   7.5   Cowboy Zone
10-554   24 metres   5.2   Offset Zone
    Including 7 metres   8.2   Offset Zone
    Including 2 metres   5.9   Cowboy Zone

Holes 10-552 to 10-554 intersected the Offset and Cowboy zones between elevations 4450 and 4225, the latter being the actual bottom of the resource calculation of the Offset Zone. Resources in that area were classified as inferred resources. Hole 10-554 is located at elevation 4225, the bottom limit of the resource calculation. It demonstrates, like the two other holes, that the Offset and Cowboy zones are robust and completely open at depth and sideways.

In the south area, directional holes 10-503, 10-504 and 10-505 also intersected the Offset Zone. The Offset Zone in that area is wide (hole 10-505 Offset Zone intersection is 51 metres in total) with higher grade sections of 7 metres of 5.0 g/t Pd (hole 10-505) and 5 metres of 5.6 g/t Pd (hole 10-504). These results also indicate that the Offset Zone there is completely open toward the south and at depth.

A visual of the deep Offset Zone looking east is shown in Figure 5, available online at NAP's website at www.nap.com/explore_ldi.htm.

West Pit Area

The 2010 surface drill program in the West Pit area of the LDI mine property followed up on the historic and previous drill results of the mineralized zones adjacent to the open pit. In 2009, 29 holes were drilled from within 150 metres of the west wall of the open pit and a total of 5 holes (over 1,257 metres) were completed in 2010. A thorough compilation of all geological and assay results from the last three years indicated that there is insufficient mineralization at this time to support the development of an open pit operation in that sector at current palladium prices. Some of the ore may be available for underground operations in the future.

Update on the Roby Zone Reserves and LDI Resources

The results reported today, along with the other 2010 results reported on June 7, 2010, are not incorporated in the resource update for the Offset Zone that was released on May 27, 2010, which only included results from the 2009 program and earlier drilling.

The Offset Zone resource number set out below are unchanged from the May 27, 2010 resource update. The next resource update for the Offset Zone, which will incorporate all of the 2010 drill results, is expected in the second quarter of 2011.

Following the re-start of mining operations during the second quarter of 2010 on the Roby Zone, NAP mandated URS/Scott Wilson to update the Roby resource classification into reserves for the NI 43-101 report, dated November 2, 2010.

Based on this estimation, the Company has calculated contained metal for the measured and indicated resources is equivalent to 3,396,000 ounces of palladium, and that contained metal for the inferred resource category is equivalent to 608,000 ounces of palladium. The NI 43-101 technical report will be filed on SEDAR in the coming weeks.

The following tables present the new classifications of the reserves and resources at LDI based on the new NI 43-101 report:

Table 1: Roby Zone Underground Reserves – Lac des Iles Mine
 
Location   Tonnes (000's)   Pd (g/t)   Pt (g/t)   Au (g/t)   Cu (%)   Ni (%)
Reserve                        
Proven   480   5.80   0.33   0.20   0.041   0.052
Probable   1,209   6.43   0.38   0.30   0.065   0.074
Proven & Probable   1,689   6.25   0.37   0.27   0.058   0.068
 
Notes:
  1. CIM definitions were followed for the estimation of Mineral Reserves.
  2. Mineral Reserves for the underground Roby Zone were estimated at a cut-off grade of 4.5 g/t Pd.
  3. Metal price assumptions of US$375/oz palladium, US$1,500/oz platinum, US$900/oz gold,US$7.00/lb nickel, and US$2.50/lb copper were used in the estimation of cut-off grade. A US$/C$ exchange rate of 1.11 was used.
  4. Variable dilution has been applied according to anticipated over-break on footwall or hanging wall, and to the location of stopes with respect to hanging wall structures that affect over-break.
  5. Mining extraction for the crown pillar is 100%. For Roby Zone stopes, extraction is 95%.
 
The resources of the Offset Zone were estimated by URS/Scott Wilson, published on May 27, 2010, and remain unchanged until the 2010 drilling can be incorporated. Other resources have been reviewed and updated by URS/Scott Wilson.
 
Table 2: Mineral Resource Summary – Lac des Iles Mine
 
Location   Tonnes (000's)   Pd (g/t)   Pt (g/t)   Au (g/t)   Cu (%)   Ni (%)
Measured Resources                        
Open Pit   3,722   1.99   0.23   0.17   0.08   0.07
Stockpiles   747   1.89   0.19   0.16   0.06   0.08
Total Measured   4,469   1.97   0.22   0.17   0.07   0.07
Indicated Resources                        
Open Pit   2,565   2.20   0.24   0.18   0.08   0.07
RGO Stockpiles   13,365   0.97   0.12   0.08   0.03   0.06
Roby Zone Underground   3,144   7.62   0.44   0.33   0.06   0.08
Offset Zone Underground   8,628   6.29   0.42   0.40   0.11   0.14
Total Indicated   27,702   3.50   0.26   0.22   0.06   0.09
Total M&I Resources   32,171   3.28   0.26   0.21   0.06   0.08
Inferred Resources                        
Offset Zone Underground   3,322   5.70   0.35   0.23   0.07   0.10
 
Notes:
   1. CIM definitions were followed for the estimation of Mineral Resources.
   2. MineralResources are inclusive of Mineral Reserves, which are contained in theRoby Zone underground mine.
   3. MineralResource cut-off grades were estimated for a 14,000 tpd production scenario.Open pit and RGO stockpile resources are not economic at the currentproduction rate.
   4. Open PitMineral Resources were estimated at a pit discard cut-off grade of 1.8 g/tpalladium equivalent (PdEq), within an optimized pit shell. Additionalmineralization is present outside of the pit shell.
   5. MineralResources in stockpiles were estimated at a cut-off grade of 1.9 g/t PdEq.
   6. MineralResources for the Roby Zone underground mine were estimated at a cut-offgrade of 5.8 g/t PdEq.Resources include sill, rib, and crown pillars.
   7. MineralResources for the underground Offset Zone were estimated at a cut-offgrade of 4.0 g/t Pd (6.0 g/t PdEq).
   8. PdEqfactors were calculated separately for each area, based on operating costand metallurgical performance estimates appropriate for those areas.
   9. Metalprice assumptions of US$350/oz palladium, US$1,400/oz platinum, US$850/ozgold, US$6.50/lb nickel, and US$2.00/lb copper were used in the estimationof PdEq and cut-off grade. A US$/C$ exchange rate of 1.11 was used. Forthe Offset Zone, metal price basis is: US$400/oz Pd; US$1,400/ozPt;US$1,000/oz Au; US$3.00/lb Cu; US$8.50/lb Ni; US$20/lb Co. Exchangerate is 1.11 US$/C$.
   10. Effective dates are variable for the variousareas of Mineral Resources.

Technical Information and Qualified Persons

The assay analyses performed during NAP's drill programs are subject to a formal quality assurance and quality control (QA/QC) program. Diamond drill core is logged and sampled on site and at the Company's exploration office in Thunder Bay with sample transport by the Company and Courtesy Courier to Activation Laboratories Ltd. (Thunder Bay and Ancaster), an independent accredited laboratory, for assay analysis. Check assay analyses are carried out by SGS Minerals Services (Toronto), a laboratory that is also independent of the Company. The Company's exploration team designed and executed the drilling program under the supervision of Mr. Michel Bouchard, P. Geo., Vice President, Exploration and Development, a Qualified Person as defined by National Instrument 43-101, who has reviewed and approved the content of this news release.

URS/Scott Wilson QPs include Richard Routledge, M.Sc., P.Geo., Principal Geologist, for the mineral resource estimates, and Jason Cox, P.Eng., Supervisor of Mine Engineering, for the mineral reserve estimates.

About North American Palladium

NAP is a Canadian precious metals company focused on growing its production of palladium and gold in mining-friendly jurisdictions. The Company's flagship mine, Lac des Iles, is one of the world's two primary palladium producers. NAP also owns and operates the Sleeping Giant gold mine located in the prolific Abitibi region of Quebec. The Company has extensive landholdings adjacent to both its Lac des Iles and Sleeping Giant mines, and a number of exploration projects. NAP trades on the NYSE Amex under the symbol PAL and on the TSX under the symbol PDL.

Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated and Inferred Resources

This press release uses the terms "Measured", "Indicated" and/or "Inferred" Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.

Cautionary Statement on Forward Looking Information

Certain information included in this press release, including any information as to our future exploration, financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute 'forward-looking statements' within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. The words 'expect', 'believe', 'will', 'intend', 'estimate' and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, including the possibility that ramping-up operations at the Lac des Iles and Sleeping Giant mines to a steady-state may not proceed as planned, that other properties can be successfully developed, and that metal prices, foreign exchange assumptions and operating costs may differ from management's expectations. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of North American Palladium to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and that the forward-looking statements are not guarantees of future performance. These statements are also based on certain factors and assumptions. For more details on these estimates, risks, assumptions and factors, see the Company's most recent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian 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, except as expressly required by law. Readers are cautioned not to put undue reliance on these forward-looking statements.

Appendix:
 
ROBY ZONE
Drill Hole   From (m)   To (m)   Length (m)   Pd (g/t)   Pt (g/t)   Au (g/t)   Cu (%)   Ni (%)   Co (%)
10-150   159   161   2   4.39   0.27   0.07   0.002   0.034   0.004
10-151   215   219   4   3.52   0.37   0.03   0.014   0.033   0.005
10-152   NSA                                
10-153   206   208   2   4.85   0.71   0.16   0.028   0.045   0.005
10-154   NSA                                
10-155   NSA                                
10-156   197   198   1   10.10   0.38   0.10   0.002   0.044   0.004
10-157   208   209   1   9.53   1.10   0.06   0.007   0.040   0.004
10-158   236   238   2   9.82   1.43   0.04   0.003   0.028   0.004
10-159   NSA                                
10-160   111   116   5   5.27   0.34   0.03   0.027   0.052   0.006
10-161   144   161   17   11.12   0.66   0.26   0.019   0.047   0.005
Including   148   151   3   36.50   2.17   0.73   0.033   0.050   0.005
  156   159   3   10.97   0.58   0.43   0.030   0.063   0.004
10-162   114   118   4   5.67   0.49   0.17   0.004   0.033   0.003
10-162   177   180   3   9.21   0.60   0.30   0.017   0.051   0.005
10-163   156   158   2   5.17   0.51   0.04   0.004   0.036   0.003
10-164   139   146   7   3.48   0.27   0.02   0.003   0.045   0.005
10-164   166   170   4   3.65   0.24   0.06   0.017   0.048   0.006
10-165   NSA                                
10-166   153   157   4   4.65   0.23   0.06   0.005   0.037   0.004
10-166   162   166   4   4.47   0.36   0.03   0.003   0.027   0.004
 
 
 
SOUTH SURFACE DRILLING
Drill Hole   From (m)   To (m)   Length (m)   Pd (g/t)   Pt (g/t)   Au (g/t)   Cu (%)   Ni (%)   Co (%)   Zone
10-006   471   475   4   3.79   0.52   0.23   0.176   0.140   0.008   Other
10-006   506   509   3   10.99   0.50   0.34   0.049   0.079   0.007   Sheriff Zone
10-006   1205   1207   2   6.55   0.69   0.46   0.124   0.127   0.006   Other
10-006   1244   1249   5   5.61   0.75   0.70   0.229   0.273   0.008   Offset Zone
10-006   1363   1367   4   3.12   0.42   0.25   0.114   0.130   0.008   Cowboy Zone
10-007   153   161   8   3.34   0.36   0.03   0.143   0.109   0.008   Other
10-007   170   178   8   3.52   0.32   0.02   0.110   0.120   0.007   Other
10-007   554   559   5   3.55   0.38   0.23   0.070   0.112   0.008   Sheriff Zone
10-007   730   776   46   3.04   0.35   0.33   0.074   0.100   0.008   Offset Zone
Including   751   757   6   5.02   0.54   0.59   0.115   0.141   0.009   Offset Zone
  762   768   6   6.57   0.78   0.76   0.117   0.144   0.008   Cowboy Zone
10-008   416   419   3   4.70   0.47   0.31   0.132   0.123   0.009   Other
10-009   NSA                                
10-010   487   494   7   2.76   0.25   0.20   0.111   0.100   0.009   Sheriff Zone
10-011   Assays Pending                                
 
 
 
UPPER OFFSET ZONE
Drill Hole   From (m)   To (m)   Length (m)   Pd (g/t)   Pt (g/t)   Au (g/t)   Cu (%)   Ni (%)   Co (%)   Zone
10-307   260   269   9   2.00   0.23   0.07   0.052   0.062   0.006   Twilight Zone
10-307   302   307   5   2.71   0.31   0.16   0.089   0.103   0.007   Offset Zone
10-307   329   334   5   3.73   0.41   0.22   0.096   0.103   0.006   Offset Zone
10-308   240   249   9   2.98   0.21   0.06   0.012   0.060   0.004   Offset Zone
10-308   256   261   5   3.96   0.37   0.39   0.166   0.156   0.008   Cowboy Zone
10-309   278   290   12   1.89   0.20   0.27   0.062   0.071   0.005   Offset Zone
10-310   283   291   8   2.98   0.31   0.17   0.063   0.090   0.005   Offset Zone
10-311   NSA                                    
10-312   250   255   5   3.72   0.43   0.43   0.153   0.133   0.008   Offset Zone
10-312   270   276   6   5.66   0.63   0.66   0.210   0.200   0.011   Cowboy Zone
10-313   260   264   4   4.28   0.50   0.17   0.072   0.090   0.007   Offset Zone
10-313   300   304   4   5.44   0.55   0.28   0.113   0.153   0.007   Cowboy Zone
 
 
 
OFFSET ZONE (UPPER NORTH)
Drill Hole   From (m)   To (m)   Length (m)   Pd (g/t)   Pt (g/t)   Au (g/t)   Cu (%)   Ni (%)   Co (%)   Zone
10-600   168   189   21   2.04   0.15   0.05   0.034   0.064   0.005   Missed (1)
10-601   166   197   31   3.74   0.26   0.27   0.080   0.113   0.006   Offset Zone
Including   168   175   7   5.19   0.29   0.33   0.105   0.119   0.006   Offset Zone
180   187   7   5.16   0.39   0.30   0.083   0.128   0.006   Offset Zone
10-602   130   138   8   5.61   0.34   0.35   0.070   0.117   0.007   Offset Zone
10-602   166   185   19   3.34   0.28   0.29   0.129   0.179   0.006   Cowboy Zone
10-603   NSA                               Missed (1)
10-604   125   139   14   3.31   0.22   0.11   0.091   0.111   0.007   Offset Zone
10-610   126   149   23   4.68   0.31   0.28   0.093   0.129   0.006   Offset Zone
Including   135   140   5   9.35   0.56   0.47   0.171   0.202   0.007   Offset Zone
10-611   127   156   29   4.21   0.27   0.38   0.097   0.160   0.007   Offset Zone
Including   128   131   3   7.53   0.41   0.60   0.085   0.160   0.008   Offset Zone
10-612   142   193   51   3.25   0.22   0.26   0.091   0.104   0.005   Offset Zone
Including   142   155   13   6.74   0.36   0.46   0.097   0.142   0.006   Offset Zone
    148   155   7   9.92   0.50   0.66   0.141   0.198   0.007   Offset Zone
    162   168   6   5.64   0.39   0.48   0.117   0.133   0.005   Cowboy Zone
10-613   105   132   27   3.83   0.26   0.33   0.059   0.098   0.006   Offset Zone
Including   105   112   7   8.24   0.51   0.78   0.100   0.169   0.008   Offset Zone
10-614   127   156   29   3.48   0.23   0.22   0.071   0.113   0.006   Offset Zone
Including   133   139   6   5.57   0.36   0.39   0.110   0.173   0.006   Offset Zone
    151   156   5   5.47   0.37   0.19   0.076   0.125   0.005   Cowboy Zone
10-615   134   158   24   4.94   0.32   0.19   0.081   0.133   0.006   Offset Zone
Including   149   158   9   6.22   0.40   0.18   0.076   0.161   0.006   Offset Zone
10-616   123   148   25   3.25   0.21   0.26   0.055   0.100   0.006   Offset Zone
Including   128   134   6   5.57   0.33   0.38   0.054   0.102   0.005   Offset Zone
10-618   127   158   31   5.12   0.33   0.26   0.080   0.117   0.006   Offset Zone
Including   130   137   7   10.01   0.64   0.56   0.135   0.155   0.008   Offset Zone
10-620   136   184   48   3.75   0.25   0.31   0.084   0.114   0.006   Offset Zone
Including   147   157   10   6.20   0.36   0.44   0.103   0.156   0.006   Offset Zone
10-621   144   179   35   4.94   0.30   0.32   0.081   0.123   0.006   Offset Zone
Including   144   153   9   8.01   0.44   0.52   0.082   0.128   0.007   Offset Zone
    172   178   6   6.57   0.42   0.37   0.112   0.170   0.006   Offset Zone
10-622   153   162   9   3.05   0.22   0.47   0.107   0.115   0.006   Missed (1)
10-623   133   173   40   4.52   0.29   0.30   0.083   0.120   0.007   Offset Zone
Including   134   146   12   8.82   0.51   0.45   0.104   0.145   0.008   Offset Zone
10-624   141   177   36   5.62   0.35   0.39   0.077   0.127   0.007   Offset Zone
Including   145   150   5   14.14   0.76   1.06   0.142   0.187   0.007   Offset Zone
10-625   145   172   27   3.56   0.24   0.37   0.089   0.113   0.006   Offset Zone
Including   145   153   8   5.17   0.33   0.29   0.066   0.100   0.005   Offset Zone
    214   219   5   3.92   0.84   0.14   0.059   0.093   0.005   Cowboy Zone
10-626   NSA                               Missed (1)
10-627   171   182   11   5.02   0.31   0.23   0.069   0.088   0.006   Offset Zone
10-628   Assays Pending                                
  1.  Missed zone, north of wireframe and Offset fault
 
 
 
OFFSET ZONE (UPPER)
Drill Hole   From (m)   To (m)   Length (m)   Pd (g/t)   Pt (g/t)   Au (g/t)   Cu (%)   Ni (%)   Co (%)   Zone
10-670   227   236   9   3.95   0.41   0.07   0.022   0.070   0.005   Offset Zone
10-672   143   151   8   7.14   0.47   0.29   0.087   0.120   0.009   Offset Zone
10-672   166   171   5   10.71   0.58   0.47   0.114   0.127   0.009   Cowboy Zone
10-672   196   202   6   4.96   0.28   0.05   0.013   0.059   0.004   Outlaw Zone
10-673   NSA                               Missed (2)
10-674   NSA                               Missed (2)
10-675   161   194   33   5.65   0.41   0.34   0.115   0.133   0.007   Offset Zone
Including   162   168   6   10.35   0.54   0.44   0.113   0.151   0.009   Offset Zone
10-676   141   199   58   3.56   0.28   0.23   0.088   0.114   0.007   Offset Zone
Including   143   150   7   8.02   0.47   0.34   0.083   0.145   0.007   Offset Zone
10-677   NSA                               Missed (2)
10-678   NSA                               Missed (2)
10-679   NSA                               Missed (2)
10-680   106   114   8   5.94   0.38   0.04   0.078   0.138   0.008   Offset Zone
10-681   Assays Pending                                
  2. Missed zone, up-section from wireframe
 
 
 
DIRECTIONAL DRILLING ON OFFSET ZONE (SOUTH)
Drill Hole   From (m)   To (m)   Length (m)   Pd (g/t)   Pt (g/t)   Au (g/t)   Cu (%)   Ni (%)   Co (%)   Zone
10-503   0   4   4   7.53   0.38   0.52   0.105   0.096   0.005   Other
10-503   296   308   12   2.29   0.29   0.08   0.061   0.084   0.007   Other
10-503   328   336   8   2.75   0.35   0.15   0.134   0.128   0.009   Other
10-503   451   462   11   3.97   0.54   0.35   0.093   0.114   0.006   Offset Zone
10-503   470   491   21   2.59   0.32   0.17   0.067   0.089   0.005   Offset Zone
10-504   1155   1206   51   2.50   0.32   0.22   0.069   0.084   0.005   Offset Zone
Including   1157   1162   5   5.55   0.50   0.61   0.112   0.129   0.007   Offset Zone
  1186   1191   5   4.69   0.56   0.38   0.112   0.150   0.007   Offset Zone
10-505   200   255   55   2.22   0.26   0.17   0.074   0.086   0.007   Offset Zone
Including   202   209   7   5.01   0.52   0.28   0.110   0.116   0.008   Offset Zone
10-506   Called short                                
10-507   1234   1244   10   4.77   0.32   0.26   0.067   0.088   0.007   Offset Zone
 
 
 
DIRECTIONAL DRILLING ON OFFSET ZONE (DEEP)
Drill Hole   From (m)   To (m)   Length (m)   Pd (g/t)   Pt (g/t)   Au (g/t)   Cu (%)   Ni (%)   Co (%)   Zone
10-552   612   734   122   4.38   0.31   0.39   0.113   0.147   0.007   Offset Zone
Including   619   631   12   11.58   0.88   0.92   0.149   0.236   0.010   Offset Zone
  661   667   6   6.91   0.36   0.23   0.051   0.119   0.008   Cowboy Zone
  709   718   9   7.46   0.56   0.61   0.139   0.164   0.006   Cowboy Zone
10-553   1500   1524   24   5.00   0.34   0.38   0.091   0.120   0.007   Offset Zone
Including   1504   1509   5   9.55   0.60   0.59   0.127   0.151   0.007   Offset Zone
10-553   1543   1560   17   4.69   0.33   0.16   0.055   0.100   0.005   Cowboy Zone
Including   1545   1551   6   7.50   0.48   0.23   0.068   0.139   0.005   Cowboy Zone
10-554   719   743   24   5.20   0.34   0.38   0.086   0.117   0.006   Offset Zone
Including   719   726   7   8.20   0.58   0.56   0.108   0.113   0.008   Offset Zone
10-554   788   790   2   5.91   0.63   0.43   0.235   0.204   0.007   Cowboy Zone
 
Notes:
NSA: no significant assays
Other: zones that cannot be interpreted with certainty

To view the attached maps, please visit the following links:

http://media3.marketwire.com/docs/fig1pdl1117.pdf

http://media3.marketwire.com/docs/fig2pdl1117.pdf

http://media3.marketwire.com/docs/fig3pdl1117.pdf

http://media3.marketwire.com/docs/fig4pdl1117.pdf

http://media3.marketwire.com/docs/fig5pdl1117.pdf

Contact Information

  • North American Palladium Ltd.
    Camilla Bartosiewicz
    Manager, Investor Relations and Corporate Communications
    416-360-7590 Ext. 7226
    camilla@nap.com
    or
    North American Palladium Ltd.
    Michel Bouchard
    Vice President, Exploration & Development
    416-360-7590
    mbouchard@nap.com