🕐20.04.10 - 18:56 Uhr

North American Palladium to Acquire Vezza Gold Project From Agnico-Eagle




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130 Adelaide Street West

Suite 2116

Toronto, Ontario

Canada M5H 3P5

 

News Release - April 20, 2010

 

TSX: PDL

10-11-NAP

 

NYSE Amex: PAL

 

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

Tonnes

Grade (g/t)

Contained Ounces

Measured

193,000

6.0

37,600

Indicated

1,324,000

5.9

251,000

Total M&I

1,517,000

5.9

288,600

Inferred

754,000

5.0




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