Name of the Project
Savannah base metals project.

Location
The project is located 240 km south of Kununurra, in the East Kimberley region of Western Australia.

Client
Panoramic Resources.

Project Description
An update of the Savannah feasibility study has enhanced the fundamentals of the project. As with the February 2017 feasibility study, the updated feasibility study is based on mining the remaining ore reserve at Savannah while extending development across to the Savannah North deposit. The proposed access method will be through a decline from the existing Savannah decline at the 1440 Level, with access development from Savannah to first ore at Savannah North scheduled to take about nine months.

Changes to the mine plan and schedule since the February 2017 feasibility study have focused on smoothing the development and mining rates to achieve more effective equipment use, better management of ventilation requirements and delivering more consistent ore tonnages and higher grades to the mill. This has resulted in:
• ore mining rates averaging 65 000 t/m for the first 12 months, thereafter averaging about 80 000 t/m;
• the vertical pillar in the upper portion of Savannah North, which had been included in the July 2017 optimisation, no longer being required; and
• the removal from the mine plan of lower-grade stopes (0.8% to 1% nickel) on the western side of the upper zone, resulting in an estimated 750 000 t of material grading 0.9% nickel being removed from the plan. This material is not sterilised and remains accessible for mining at higher nickel prices.

These changes have resulted in a shorter mine life of 8.3 years, compared with 10.25 years in the February 2017 feasibility study, but with an ore mining rate over the life-of-mine (LoM) averaging 920 000 t/y, compared with the February feasibility study LoM ore mining rate of 800 000 t/y.

Average yearly metal-in-concentrate production is forecast to average 10 800 t nickel, 6 100 t copper and 800 t/y cobalt, with 90 200 t nickel, 50 700 t copper and 6 700 t cobalt-in-concentrate produced over the LoM.

The project has an estimated mineral resource of 13.20-million tonnes grading 1.65% nickel, 0.75% copper and 0.11% cobalt for 218 300 t of nickel, 99 100 t of copper and 14 900 t of cobalt.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The updated feasibility study estimates a pretax net present value, at an 8% discount rate, of A$210-million and an internal rate of return of 100%, with a payback of less than two years.

Value
The updated feasibility study forecasts a preproduction and ramp-up capital investment of A$36-million, which is higher than the A$20-million estimated in the February feasibility study.

Duration
Not stated.

Latest Developments
Panoramic plans to raise A$20.9-million for preproduction activities at the Savannah project.

Panoramic has said that it will raise A$20.9-million in a one-for-seven pro-rata renounceable entitlement offer at 34c a share, adding that the offer was fully underwritten.

“. . . to reduce the lead time for a restart of Savannah, the company believes it is prudent to commence a number of critical-path preproduction activities prior to a formal board decision to restart operations,” the firm has said in a statement, noting that a decision to restart is contingent on a sustained recovery of the nickel price, concluding offtake contracts and finalising appropriate financing.

Panoramic is working towards restarting the Savannah mine, which has been under care and maintenance for a year-and-a-half, following an increase in the nickel price last year. The company has updated Savannah’s feasibility study and will target 10 800 t/y of nickel, 6 100 t/y of copper and 800 t/y of cobalt from the mine. All three metals are essential materials for the fast-growing battery industry.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Panoramic Resources, tel +61 8 6266 8600, fax +61 8 9421 1008 or email info@panres.com.