logo-loader

Panoramic Resources reveals additional nickel target at Savannah

Published: 21:00 10 Apr 2017 EDT

nickel_58ec4577366cf
February 2017 feasibility study forecasts NPV of $60M

Panoramic Resources (ASX:PAN) has confirmed the presence of a large electromagnetic anomaly situated to the northeast of the Savannah deposit in Western Australia.

The company identified a clear, off-hole electromagnetic response at a down-hole depth of 960 metres.

The geophysical response indicates a large, highly conductive source, consistent with “Savannah style” nickel sulphide mineralisation.

Panoramic intends to drill test this target as a matter of priority.

The Savannah Nickel Project is located 240 kilometres south of Kununurra in the East Kimberley region of Western Australia.

The project consists of a nickel-copper-cobalt sulphide orebody, underground mine, process plant and associated infrastructure.

Panoramic successfully commissioned the Savannah Project in late 2004 and milled circa 8.5 million tonnes over a twelve-year period.

In FY2016, Savannah achieved a record year with 9,845 tonnes nickel, 6,011 tonnes copper and 476 tonnes cobalt in concentrate produced.

The Savannah Project was placed on care and maintenance in May 2016 pending a sustained recovery in the US$ nickel price.

In February 2017, Panoramic completed a feasibility study for the project, significantly extending the mine life along with globally competitive operating costs.

The company forecasts a pre-tax net present value of $60 million with average production of 9,700 tonnes nickel, 5,000 tonnes copper and 670 tonnes cobalt annually for ten years.

The total Savannah ore reserve is presently 8.21 million tonnes at 1.37% nickel, 0.64% copper and 0.09% cobalt for 112,600 tonnes nickel, 52,400 tonnes copper and 7,600 tonnes cobalt.

Panoramic’s share price increased circa 18% since the start of 2017, last trading at $0.33.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

3 hours, 56 minutes ago