Name of the Project
Savannah nickel/copper/cobalt project.

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

Client
Panoramic Resources.

Project Description
Savannah, which comprises the Savannah, Savannah North and Copernicus, has a mineral resource of 13.9-million tonnes grading 1.63% nickel, 0.75% copper and 0,11% copper for 226 400 t nickel, 104 700 t copper and 15 300 t cobalt.

The project consists of a nickel sulphide orebody, underground mine, process plant and associated infrastructure. The mine was placed under care and maintenance in May 2016 pending a sustained recovery in the dollar nickel price.

The feasibility study is based on mining the remaining ore reserve at Savannah while developing across to the Savannah North deposit.

Access to Savannah North will be through a decline from the existing Savannah decline at the 1440 level to the Savannah North 1380 to 1360 level.

Mining of Savannah North is proposed to be by conventional long-hole open stoping and paste fill at mining rates between 700 000 t/y to 900 000 t/y of ore.

At the scheduled rates, production can be maintained for ten years based on the proposed mine plan.

Processing is through the existing Savannah plant to produce a bulk nickel/copper/cobalt concentrate targeting a concentrate grade of 8% nickel.

Processing recoveries over the life-of-mine are expected to average 87% nickel, 96% copper and 90% cobalt, based on historical Savannah plant performance.

Metal in concentrate production is forecast to average 9 700 t/y nickel, 5 000 t/y copper and 670 t/y cobalt, with 99 200 t nickel, 51 500 t copper and 6 900 t cobalt in concentrate produced over the life of the mine.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $190-million and internal rate of return of 115%, with a payback of less than two years.

Value
The feasibility study estimates preproduction capital of $20-million.

The low capital expenditure is owing to the mine development already being in place to access the existing Savannah ore, and the existing mobile equipment fleet, processing plant and supporting infrastructure being kept in good condition while under care and maintenance since the suspension of mining operations in May 2016.

Duration
Access development from Savannah to first ore at Savannah North is scheduled to take about nine months, with full production from Savannah North reached 15 months after the start of construction.

Latest Developments
As part of the feasibility study, Panoramic has identified several opportunities that could add significant value to the project, including future resource expansion, mine planning and scheduling, as well as productivity and product optimisation.

These opportunities will be assessed as part of the next phase of optimisation work.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Panoramic Resources, tel +61 86266 8600, fax +61 8 9421 1008 or email info@panres.com.