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PERTH (miningweekly.com) – Nickel miner Panoramic Resources has flagged a 22% drop in nickel production for the December quarter, and a 19% drop in copper production, compared with the previous quarter.
During the three months to December, Panoramic produced 1 042 t of nickel and 695 t of copper, as well as 55 t of cobalt.
The miner on Monday reported that ore mined for the quarter was up 9%, at 129 522 t, compared with the previous quarter, however, production was impacted by lower head grades.
The mine plan at the Savannah operation, in Western Australia, had anticipated lower grades during the quarter, relating to the stoping sequence in the Savannah remnant ore reserves, however, dilution was higher than expected owing to a localized hanging wall instability.
Mined grades are expected to progressively improve over the second half of 2020 as production ramps up at the Savannah North project, and access is gained to higher-grade Savannah remnant stoping blocks.
Meanwhile, Panoramic on Monday also reported that a share purchase agreement had been inked under which its subsidiary Magma Metals would sell the Thunder Bay North project, in Northern Ontario, to TSX-V listed Regency Gold Corp.
Panoramic in July of last year signed a binding letter of agreement with TSX-V-listed Benton Resources to divest of the Thunder Bay project for C$9-million in cash.
The letter of agreement with Benton has now been terminated, while the terms of the sale have not materially changed.
A deposit of C$250 000 will become payable on the signing of the share purchase agreement, along with a further C$4.5-million on the completion of the sale. A C$1.5-million payment will become due on the first anniversary of the transaction, along with a similar payment on the second and third anniversary of the deal.
The transaction with Regency was subject to a number of conditions, including the Canadian company securing sufficient financing to enable the initial purchase price payment, and shareholder and regulatory approvals.