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 of nickel, 48 500 t of 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 of nickel, 4 579 t/y of copper and 659 t/y of 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
Panoramic Resources has produced the first nickel/copper/cobalt concentrate from its Savannah processing plant, about three weeks ahead of schedule.

“We have been pleased with the performance of the plant through the commissioning phase and will now target ramp-up to steady state production over the coming months,” Panoramic CEO and MD Victor Rajasooriar has said.

The crushing, milling and flotation circuits, and tailings processing, have achieved operational stability with concentrate production under way. Concentrate haulage from site to Wyndham port is planned to start shortly, with haulage contractor Cambridge Gulf having already recruited a local workforce for concentrate haulage.

“As underground mining continues at Savannah and ore production steadily builds, the surface ore stockpile, which is currently . . . at over 120 000 t, will provide consistent feed to the processing plant and reduce any risk to throughput rates. The timing of first concentrate production has also aligned well with prices for nickel, copper and cobalt, which have continued to show strength as the year progresses,” Rajasooriar adds.

Panoramic is also in the process of securing its first ship to transport the concentrate to Jinchuan, its current offtake partner, with the first shipment planned for 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.