Panoramic Resources plans to ship first concentrate from the Savannah nickel-copper-cobalt project in Western Australia in first quarter 2019.
The company has started phase two of pre-production activities at Savannah after its board officially approved reopening the East Kimberley operation, which was suspended in May 2016 due to low nickel prices.
Panoramic, through subsidiary Savannah Nickel Mines, secured a $40 million loan with Macquarie Bank to fund the restart. The loan adds to a $20.9 million capital raising by Panoramic in February.
“The finalisation of the facilities is a significant milestone for the Savannah project and was the remaining condition precedent to the board making the decision to restart the project,” Panoramic said in an ASX announcement.
Savannah will ramp up to full production over 15 months with forecasted annual output of 10,800t nickel, 6100t copper and 800t cobalt contained in concentrate.
Panoramic delivered an updated feasibility study for the Savannah project last October outlining an 8.3-year mine life for the operation.
Earlier this month, Panoramic signed a four-year concentrate sales agreement with Sino Nickel for Savannah. The agreement covers 100 per cent of concentrate produced at Savannah, which will be shipped from the Port of Wyndham.