Frontier Lithium Inc (FL)

[MoneyMan]

PAL puts out 2012 exploration budgets. Surely they will find a few hundred thousand in 2012 for the JV with HLM's Tib Lake PGE Property


North American Palladium Announces 2012 Guidance on Production, Capital Expenditures and Exploration Budgets
http://finance.yahoo.com/news/North-American-Palladium-iw-4102508523.html?x=0

Palladium Operations

"I am very pleased with the significant progress made in 2011 on our mine expansion development activities," commented Greg Struble, Vice President and Chief Operating Officer. "During 2012 we will continue to make major investments in our mines, in exploration, and in our people and I am confident that we have the right team and processes in place to achieve our objectives."

Production and Cash Costs

Payable palladium production from the LDI mine for the year ended December 31, 2011, totaled approximately 146,000 ounces at total cash costs expected to be in line with management's guidance of US$450 per ounce. More detailed disclosure of 2011 production numbers will be provided when the Company releases its year-end results in February.

2012 production is expected to show modest growth from 2011, and be in the range of 150,000 to 160,000 ounces at cash costs in the range of US$375 to US$400 per ounce. Underground mining is expected to average 2,600 tonnes per day with ore sourced from the Roby Zone as well as the upper part of the Offset Zone (including development ore). Surface ore will come from mining approximately 1 million tonnes from the existing open pit which was recently restarted. Underground ore is expected to have an average head grade of 5.3 grams per tonne, and surface ore 1.9 grams per tonne. In total, the Company expects to mill approximately 1.8 to 2.0 million tonnes of underground and surface ore at an average palladium head grade of 3.7 grams per tonne, with a mill recovery of 78%.

In 2012 the LDI mine remains in a transitional phase, with underground mining being via ramp access, until the new mine shaft becomes operational at the end of the year. Quarterly variability in LDI's production metrics is to be expected during the transition phase, and reflects the planned mining sequence (and hence grade variability) to mitigate logistical congestion between operations and the underground development activities. It should also be noted that cash costs are expected to be higher during the first half of the year due to seasonal trends that impact operating costs, such as increased use of propane during the winter season.

LDI's cash costs per ounce are presented net of by-product revenue. In 2012, the by-product metals are expected to comprise approximately 35% of LDI's revenue, as compared to approximately 28% in 2011. The higher by-product metal percentage in 2012 results from mining proportionally more lower palladium grade surface ore. Assumptions used to forecast cash costs for 2012 include US$1,600 per ounce gold, US$1,600 per ounce platinum, US$8.50 per pound nickel, US$3.50 per pound copper and an exchange rate of C$1.00 to US$1.00.

The shaft, which will have a capacity of 7,000 tonnes per day, is targeted to be commissioned at the end of the year, which will allow LDI to increase its underground mining rate to 3,500 tonnes per day at the beginning of 2013. Production will be gradually ramped up during 2013 and 2014 to 5,500 tonnes per day starting in 2015, at which point the Company expects production will exceed 250,000 ounces at cash costs of approximately US$200 per ounce.

The mine expansion plan and forecast of future production is based on the current resource wireframe, and does not include potential production from the Cowboy, Outlaw, and Sheriff zones, which could alter future development plans.

Palladium Exploration

Following the exploration success achieved in the past few years, NAP will continue to invest in exploration to expand the reserves and resources at LDI and to identify new targets. 2012 exploration expenditures are expected to be approximately $16 million, comprised of 70,000 metres of drilling, of which 64,000 metres will be at LDI, and 6,000 metres at NAP's other nearby properties. $10 million of the $16 million in expenditures (55,000 of the 64,000 metres to be drilled at LDI) is in connection with the mine expansion and is included in the $116 million capital expenditure budget discussed above, leaving a balance of $6 million that will be expensed.

The main focus of the exploration program will be underground exploration at LDI targeting the Offset Zone, to conduct infill drilling as well as to test extensions of the Offset Zone mineralization towards surface, at depth, and to the south. In addition, drilling will be conducted at North LDI, the North VT-Rim and Legris Lake.