Lac des Iles Feasibility Study
Project Introduction
Lac des Iles Mines Ltd., a subsidiary of North
American Palladium Ltd., owns a 15,000 tpd palladium/platinum open
pit mine and milling operation located 85 km northwest of Thunder
Bay in northwestern Ontario. The Lac des Iles mill produces
nickel/copper concentrate with high platinum group metal values and
ships it to Sudbury for smelting and refining at CVRD Inco’s and
Xstrata’s plants.
Project Background
Lac des Iles Mines carried out an extensive
exploration program that identified potential mineralization at
depth, below the existing open pit operation, and delineated two
zones with potential for underground mining, the Main High Grade
Zone and the Offset Zone. Scott Wilson completed a pre-feasibility
study for the underground mining, and based on its results, a
decision to carry out detailed engineering of the proposed
underground mine was made.
Project Scope
Scott Wilson was retained by Lac des Iles
Mines Ltd. in 2004 to prepare a feasibility study for the Lac des
Iles underground project. The objectives were to integrate the open
pit and proposed underground operations, establish a sound project
plan to guide the construction and operation of the underground
mine over the mine life, estimate the total capital investment and
the expected operating costs over the life of the underground mine,
and evaluate the financial return on the investment in the
underground mine.
Value Adding Project
Achievements
The Scott Wilson study provided a mine design
including assessment of expected ground conditions and dilution,
evaluation of access options and stope sizes/layouts, determination
of mining method, assessment of the sequencing and interaction of
underground and open pit operation.
Production and development schedules for the life of the mine and a
financial analysis of the underground project were prepared. Scott
Wilson reviewed environmental requirements and prepared a closure
plan for the underground operation.
Parameters and estimates from the study were proven accurate by
subsequent construction and operations.
