PERTH (miningweekly.com) – Nickel miner Panoramic Resources has extended the mine-life at its Savannah project, in Western Australia.
Referencing a recently released life-of-mine update, Panoramic MD Victor Rajasooriar told delegates of Paydirt’s Battery Minerals conference, in Perth, that the project now had a minimum mine-life of 12 years.
Rajasooriar noted that nickel production is now targeted at 9 400 t/y, with copper production targeted at 5 000 t/y and cobalt production at 714 t/y between the 2024 financial year and the 2035 financial year.
“When you look at the long term, what this project could deliver, we're looking at cash flow of A$1.4-billion. That's A$1.4-billion from the small operation in the back yard of Western Australia. The pre-tax net present value is about A$844-million,” he added.
The updated life-of-mine plan has estimated gross revenues of A$3.8-billion for the project, while all-in site costs have been estimated at A$8.57/lb.
Panoramic has previously reported that the Savannah North orebody remained open along strike and at depth providing significant potential to bring more material into the mine plan. Furthermore, recent drilling below the historical workings of the Savannah orebody also indicates a continuation at depth with the potential to bring additional material into the mine plan.
“The mine plan continues to provide an attractive base case for Savannah, with significant scope to further enhance the mining inventory by upgrading inferred resources and testing the Savannah North orebody at depth and along strike where it remains open. Furthermore, the project is highly leveraged to nickel price upside that is expected to be driven by the electric vehicle market, as evidenced over the past year,” Rajasooriar said.