Lanfranchi mine, Australia

23rd January 2015 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Lanfranchi mine, Australia

Name: Lanfranchi mine.

Location: The Lanfranchi mine is located in the Kambalda nickel district of Western Australia.

Controlling Company: Panoramic Resources.

Brief History: In November 2004, Panoramic (75%), in a joint venture (JV) with Brilliant Mining Corp’s subsidiary, Donegal Resources, acquired the Lanfranchi project from WMC Resources, now BHP Billiton’s Western Australia Nickel West business. At the time, Lanfranchi was on care and maintenance. The JV restarted operations at the mine in 2005.

Brilliant Mining Corp announced in February 2009 that it was selling Donegal Resources Panoramic, giving the company full control of the Lanfranchi nickel mine. The move consolidated Panoramic as one of Australia’s major nickel sulphide miners.

Brief Description: The Lanfranchi mine comprises the Cruishank, Deacon, Gigantus, Helmut South, Helmut South Extension, John, Lanfranchi, Martin, McComish, Jury-Metcalfe, Schmitz and Winner deposits.

Geology/Mineralisation: High-grade nickel sulphide deposits at Lanfranchi occur as ribbon-like shoots at the base of high-magnesium komatiite lava flows or channels. The shoots and high-magnesium lava flows occupy channel structures developed in the underlying Lunnon (footwall) basalt. Above the high-magnesium komatiite flows is a thick sequence of progressively less magnesium-rich komatiite flows. Ten channel structures are recognised at Lanfranchi, of which six have been mined historically.

Reserves: Total proven and probable reserves as at June 30, 2014, were 942 000 t.

Resources: Total measured, indicated and inferred resources are estimated at 5.94-million tonnes.

Products: Nickel.

Mining Method: The majority of the ore is currently mined using long-hole open stoping, which is a highly mechanised and low-cost method. The top and bottom of the ore block is accessible through tunnels, a slot raise is created and holes are then drilled to blast the ore block. Once the ore block has been blasted and extracted, the stopes are filled with paste – to stabilise the void and allow for the extraction of adjoining ore blocks.

Major Infrastructure and Equipment: Lanfranchi produces run-of-mine ore and delivers it to BHP Billiton’s Nickel West’s Kambalda concentrator by road.

Prospects: In November 2014, Panoramic announced that it would start the development of the Jury-Metcalfe decline, at the Lanfranchi operation, following an amendment to the existing toll treatment and concentrate purchase agreement with mining major BHP Billiton. The current ore tolling and concentrate purchase agreement will run until 2019, and gives Lanfranchi significant opportunity to benefit from any future exploration success.

Contact Person: MD Peter Harold.

Contact Details:
Panoramic Resources,
tel +61 8 9225 0999,
fax +61 8 9421 1008,
email info@panres.com, and
website http://www.panoramicresources.com.