you give PALladium no respect!! Palladium is a precious metal, so you do own some PM stocks...
In regard to PAL, this is very interesting, may be what is keeping PAL relatively strong compared to other PRECIOUS METAL stocks...
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Gold Fields takes back seat in Finland PGM project
JSE-listed Gold Fields has restated its relationship with Canadian firm North American Palladium (NAP) and has now taken a back seat in the Finnish Arctic Platinum project.
Spokesperson Willie Jacobz tells Mining Weekly Online that the firm, which could end up with 40% of the project, believes that NAP, which earns its revenue from by-product nickel, platinum, gold and copper, is in a better position to operate the project.
This is because the project is now smaller than anticipated and NAP is a junior firm that is focused on palladium. Its Lac des Iles Mine is Canada's only primary producer of platinum-group metals and is one of the largest openpit bulk mineable palladium reserves in the world.
Gold Fields, one of the world's largest gold producers, with annual unhedged gold production of about 4,2-million ounces, believes that the project, to be operated by NAP, needs constant attention.
NAP will be able to acquire up to 60% in the project, provided it completes a $7,5-million rescoping study and exploration programme as well as a $5-million feasibility study before June 2008.
In addition, before this date, a decision to develop the mine must also be made, and NAP must pay Gold Fields about $45-million by means of shares.
The South African miner, however, has retained an option to up its share to 50% as it will have a back-in right to acquire an additional 10% interest in APP.
Jacobz adds that this is because it wishes to retain its exposure to the project and believes that it will go all the way to mine production stage.
Currently mothballed, some Gold Fields staff are on site looking after the property that has been in development for the last four years.
The mining property to be explored, hopefully leading to mine development, is located in Finland and its location and geology are quite similar to that of NAP's Lac des Iles mine in North-western Ontario.
The project has been divided into two phases and, during the first phase the rescoping study will be completed while phase two will see a feasibility study being undertaken.
The proposed exploration programme will focus on APP's SK Reef and SJ Reef projects, while the feasibility study will generate a report with sufficient engineering detail and cost estimates in order for the project to be considered for project financing or other suitable financing alternatives.
Rescoping and feasibility studies are expected to start in the first quarter of 2006 and take about 30 months to complete.
However, completion of the transaction is subject to a number of conditions including negotiating and executing a formal option and joint venture agreement and receipt of all required regulatory and third party approvals and consents, including the approvals of the Toronto and American Stock Exchanges and the South African Reserve Bank.
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Published: 2005/10/20 Printer friendly:
Author: nicola mawson
Portfolio: Senior Online Writer
E-mail: newsdesk@engineeringnews.co.za
