"Based on the large and growing number of underground exploration targets, we are increasing our 2019 exploration and definition drilling budget by C$5.7 million (US$4.2 million)," president and CEO Jim Gallagher reiterated this week.

The company had previously expected to spend a minimum of $16 million (US$12 million) on exploration this year, it said in February.

A major focus is the recently-discovered C Zone, near the existing Offset Zone mining area at its Lac des Iles mine in Ontario.

The latest results from C Zone included 19.4m at 4.18g/t palladium, and 74.9m at 2.93g/t.

North American Palladium announced its highest ever quarterly revenue of $128.3 million (US$95 million) for the March quarter, enabling it to eliminate its debt and increase its quarterly dividend from 3c to 10c.

The strong results came despite "a few mechanical challenges" during the quarter at the mill.

It sold 56,775oz of palladium at an average US$1,507 an ounce, compared with its product fetching $1,001/oz in the first quarter of 2018.

The palladium price surpassed gold earlier this year and is currently worth $1,322/oz on the spot market, ahead of gold's $1,277/oz.
 
The company expects to produce 220,000-235,000oz in 2019 at an all-in sustaining cost of $785-$815/oz.

Its shares soared to C$26.30 in March as the palladium price rose but last traded at $11.18, capitalising it at $658 billion (US$487 billion).