It is understood that following a strategic review, the board of Panorama Resources Australia has approved the resumption of the Savannah Nickel project in Western Australia, which has been under maintenance since the suspension of operations in April 2020.
The project is targeting an average annual output of 9,072 tonnes of nickel, 4,683 tonnes of copper and 676 tonnes of cobalt (content in concentrate products) over its 12-year mine life, with an average total cost target of A $6.36 / lb.
In support of the restart, Panorama has entered into a new five-year nickel concentrate offtake agreement and a secured loan financing agreement of US $45 million with Trafusura Group from February 2023 to February 2028 following the expiration of the existing offtake agreement with Jinchuan Group of China.
Underground mining and development at Savannah North is scheduled to resume in August 2021, and Panorama has entered into a four-year intention agreement with Barminco for mining services.
Panorama has also entered into an intent agreement with Primero for the operation and maintenance of the Savannah processing plant for a period of 3 years. Ore processing is scheduled to begin in November 2021 and the first concentrate is scheduled to be shipped from the Port of Wyndham in December 2021.
