An 8,400-metre drilling program at the Shebandowan mine, west of Thunder Bay, Ont., has defined three zones of mineralization west of the former nickel producer.
Operator North American Palladium (PDL-T, PAL-X) is earning a 50% interest in the Shebandowan property and the adjoining Haines-Conacher property from Companhia Vale do Rio Doce (RIO-N) unit CVRD Inco. North American Palladium must spend $3 million on the property and pay $200,000 cash for the interest.
The current program followed up on a summer 2006 drill program, and has delineated zones in two ultramafic bodies. The D Zone produced the highest-grade intersections, including a 2.2-metre interval grading 6.56% nickel, 1.25% copper, 2.5 grams palladium and 1.2 grams platinum per tonne, with gold and cobalt credits. A wider interval, 13.8 metres, graded 1.35% nickel, 0.74% copper, 1.1 grams palladium and 0.3 gram platinum per tonne.
In the West Zone, drill holes cut a number of wide intersections including an 18-metre interval that ran 1.32% nickel, 2.22% copper, 2.4 grams palladium and 0.6 gram platinum. At the Road Zone, grades were mostly 1% to 2% nickel and 0.6% to 1% copper, over widths mainly in the 4- to 8-metre range.
The company expects to put together a resource estimate in the second quarter of the year.