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PERTH (miningweekly.com) – An updated feasibility study (FS) into the Savannah base metals project, in Western Australia, has solidified project economics for project owner Panoramic Resources.
The updated PFS found that Savannah could support production of 10 800 t/y of nickel, 6 100 t/y of copper and 800 t/y of cobalt, compared with the 11 000 t/y of nickel, 5 800 t/y of copper and 760 t/y of cobalt assumed in an optimised FS released in February.
The project’s expected up-front capital costs have increased from A$20-million to A$36-million, with the capital increase ascribed to additional pre-production maintenance expenditure on mobile equipment, the bringing forward of processing plant refurbishments, and higher capitalised operating costs, primarily salaries, increased power demand and a slightly longer recommissioning period.
C1 cash costs for the project have also been confirmed at $1.50/lb, while operating costs have been confirmed at $2.40/lb, compared with $2/lb and $4.50/lb estimated in the February study.
The expected mine-life remained relatively unchanged at 8.3 years.
“The update of the Savannah FS has enhanced the fundamentals prior to a decision to restart the Savannah project,” said Panoramic MD Peter Harold.
“The improved mine plan and higher level of confidence around expected future production and costs, together with the short lead time, long mine life and modest capital investment required to resume operations, and the outstanding exploration upside, places Panoramic in a strong position to take full advantage of the expected upswing in commodity prices.”
Changes to the mine plan and schedules in the February FS have focused on smoothing the development and mining rates to achieve more effective equipment use, better management of ventilation requirements, and the delivery of more consistent ore tonnages and higher grades to the mill.
Testwork has also shown that Savannah North had higher copper and cobalt recoveries than previously achieved from Savannah ore, with these results included in the updated FS.