North American Palladium updates gold mineral reserves at Vezza project and Sleeping Giant project

North American Palladium Ltd. (“NAP” or the “Company”) (TSX:PDL)(NYSE Amex:PAL) today released an updated mineral reserve and mineral resource estimate for its Vezza gold project and Sleeping Giant gold mine, located in the Abitibi gold district in Quebec.

Highlights:

  • Vezza’s measured and indicated resource increased by 12% to 321,000 contained ounces. Inferred resources total 102,000 ounces.
  • Remainder of 2010 drill hole assays from Vezza confirm continuity and grade, including the best result of 8.6 metres grading 14.6 g/t Au in hole V-10-210.
  • Vezza dewatering completed and permitting for bulk sampling well underway.
  • 2010 drilling at the Sleeping Giant mine increased the contained ounces in the measured and indicated category giving a higher level of confidence in the mineral resource.

“We are pleased to see the Vezza gold project advance in accordance with the budget and timeline, as this supports our strategy to organically grow our gold division,” said William J. Biggar, President and CEO. “Future growth will come from the continued exploration and development of our advanced gold projects in the Abitibi region, where we have a significant land position and an underutilized mill.”

“The updated resource estimate at Vezza shows a growing resource,” said Michel Bouchard, Vice President, Exploration and Development. “We have completed the dewatering of the underground levels, and are well advanced on the rehabilitation of the underground infrastructure and services to start underground drilling in the coming weeks. The exploration program is progressing according to our plans, and will enable us to make a production decision on the project at the end of this year.”

“At Sleeping Giant, the increase in the measured and indicated resource tonnages supports our decision to intensify drilling in the mine in 2011, giving us greater confidence in the ore zones,” added Mr. Bouchard. “There is also upside potential at depth – where we will be developing three new mining levels this year.”

Vezza Gold Project Resource, Exploration & Development Update

Vezza is an advanced-stage gold exploration project that is currently being progressed through surface and underground exploration and development towards a production decision, expected by year-end. The plan is to have Vezza ore processed at the nearby Sleeping Giant mill which is 85 kilometres away and accessible by provincial highway.

Read the full news release here. Image of Sleeping Giant mine is from North American Palladium.

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