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News Release - April
20, 2010
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TSX: PDL
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10-11-NAP
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NYSE Amex: PAL
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North American Palladium to Acquire
Vezza Gold Project from Agnico-Eagle
Toronto, Ontario - North American Palladium Ltd.
("NAP" or "the Company") (TSX:PDL) (NYSE Amex:PAL) is
pleased to announce that it has entered into a letter of intent to acquire the
Vezza gold project in the Abitibi region in Quebec from Agnico-Eagle Mines Ltd.
("AEM") for C$10 million, comprised of C$3.5 million in cash and
C$6.5 million in shares.
A recent resource estimate prepared by Scott Wilson
Roscoe Postle Associates Inc.
("RPA") estimated that the property has
288,000 contained ounces of gold in the measured and indicated categories (see
table below).
The transaction is subject to the approval of the TSX and is
expected to close within 30 days.
"The acquisition of Vezza supports our strategy to
increase gold production by leveraging our underutilized Sleeping Giant
mill," said William J.
Biggar, President and Chief Executive Officer.
"With Vezza, we now have a sufficient number of projects in our pipeline
that, if developed, could significantly increase production in our gold
division."
Vezza Project
Vezza is an advanced-stage exploration project situated 80
kilometres by paved road from NAPs Sleeping Giant gold mine.
The Vezza gold
deposit historically underwent extensive exploration of 85,000 metres of
drilling, and substantial underground development.
The project, which has power
at site, includes a three-compartment shaft with four underground levels down
to a depth of 741 metres, a hoist, and surface and pollution control
infrastructure.
An internal feasibility study was prepared by AEM in 1997, but
the project was never put into production due to the absence of nearby milling
facilities and relatively low gold prices at the time.
As part of its due diligence, NAP retained RPA to prepare a
resource estimate in accordance with National Instrument 43-101, Standards of
Disclosure for Mineral Projects ("NI 43-101"), assuming US$1,000
gold and a 3 g/t cutoff grade.
The following table was prepared by RPA:
Resources
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Tonnes
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Grade (g/t)
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Contained Ounces
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Measured
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193,000
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6.0
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37,600
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Indicated
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1,324,000
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5.9
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251,000
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Total M&I
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1,517,000
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5.9
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288,600
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Inferred
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754,000
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5.0
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