Name of the Project
Savannah nickel project.

Location
Western Australia.

Project Owner/s
Panoramic Resources.

Project Description
An updated mine plan based on an updated ore reserve has confirmed an attractive, near-term nickel sulphide mine restart opportunity.

The updated reserve at Savannah, which includes Savannah North, comprises 8.3-million tonnes grading 1.23% nickel, 0.59% copper and 0.08% cobalt for contained metal of 102 000 t nickel, 48 500 t copper and 7 000 t of cobalt. The ore reserve underpins an estimated 13-year mine life.

Mine scheduling has been adjusted to ramp up ore production to 960 000 t/y as quickly as possible. Ore sourced from Savannah North underpins the potential restart strategy, with scheduling of ore from Savannah remnants limited to a maximum of 25 000 t a month.

The new mine plan envisages average production of 8 810 t/y nickel, 4 579 t/y copper and 659 t/y cobalt in concentrate over 12 years.

The mining methods used in the life-of-mine plan are in line with the previous operation, as a top-down, longhole open stoping mining method using paste fill is implemented. This mechanised, nonentry method has proven to be a safe, productive mining method at Savannah.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$262-million and an internal rate of return of 67%.

Capital Expenditure
Not stated.

Planned Start/End Date
Following the completion of a ventilation shaft for the Savannah North deposit, additional underground capital development and ancillary works, Panoramic approved the restart of Savannah in April 2021, with a target of first concentrate shipment by the end of 2021.

Latest Developments
Underground mining has started at the Savannah nickel project, ahead of schedule, after Panoramic Resources struck a four-year, A$280-million underground mining contract with contractor Barminco.

Panoramic had initially planned to start underground mining at Savannah in August, however, the company has said that with the new equipment arriving on site earlier than planned, and the recruitment of technical staff and underground operators having progressed seamlessly, underground operations have now started ahead of schedule.

Development and production activities are currently under way, with additional equipment and staff coming into the operation as it ramps up.

The companies have now started building an ore stockpile on the project’s surface, with a targeted 100 000 t on the surface set prior to the start of the processing plant.

Ore processing is scheduled to start in November, with first concentrate shipment from Savannah targeted for December.

Panoramic Resources has reported that all conditions precedent for its $45-million secured loan facility with Trafigura have been satisfied.

Panoramic obtained the secured loan facility in April this year, which comprises a $30-million five-year prepayment loan facility and a $15-million revolving credit loan facility, to fund the restart of its Savannah nickel project.

Following the completion of all the conditions precedent, the company is expecting first draw down of the facility in the September quarter.

Site activities at Savannah are ramping up to support first concentrate shipments in December 2021.

Key Contracts, Suppliers and Consultants
Entech (updated mine plan) and Braminco (underground mining contract).

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