Savannah base metals project, Australia
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.
Project Owner/s
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 update 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.
At full production Savannah North will produce about 950 000 t/y of ore, delivering 90 200 t of nickel in concentrate, 50 700 t of copper in concentrate and 6 700 t of cobalt in concentrate over the mine life, or 10 800 t/y of nickel in concentrate, 6 100 t/y of copper in concentrate and 800 t/y of cobalt in concentrate.
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.
Capital Expenditure
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.
Planned Start /End Date
Not stated.
Latest Developments
First nickel ore from the Savannah North operation is expected by November this year, just 16 months after a decision to re-open the mine was taken.
First ore will come from development drives being built to access the Savannah North orebody, which is now only 70 m from the Savannah orebody.
“The future of this mine is all about Savannah North,” Panoramic MD Peter Harold has said.
“We had mined Savannah for ten years and didn’t even know the Savannah North orebody was there, until we took a punt and drilled a blind hole to the west. It is a big orebody, about 175 000 t of nickel starting about 800 m below surface.
“We don’t even know yet how big it is, but we estimate around 2 km in strike – and we have only drilled out about a third of the potential strike.”
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.
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