Panoramic faces ongoing hurdles in Savannah ramp up

New 65 tonne Epiroc truck arriving at Savannah in June to augment the mobile fleet. Image: Panoramic Resources

Panoramic Resources’ ramp up of the Savannah nickel project in Western Australia has progressed well during the June quarter, despite not yet reaching its budget rates.

The news followed Panoramic’s turnaround at Savannah in March after falling short of its production target in February.

Panoramic, however, reported a 15 per cent increase in ore milled against the previous quarter.

Savannah also mined 141,613 tonnes at 1.27 per cent nickel, 0.61 per cent of copper and 0.06 per cent of cobalt, up 31 per cent on the prior quarter.

Mining and milling production was previously forecast to increase to 60,000-65,000 tonnes of ore per month in the June 2019 quarter.

Panoramic has mobilised a contractor in May to increase the rate of the Savannah twin declines, leading to improved advance rates by the following month.

The company is also still facing challenges in attracting and retaining personnel, a problem that Panoramic has expressed since the start of this year.

Panoramic, meanwhile, announced during the quarter it would sell its non-core assets to focus on Savannah, including divesting the Lanfranchi project in Western Australia to Texas-based Black Mountain Metals for $15.1 million.

The company also sold the Thunder Bay North operation in Ontario to Benton Resources for $C9 million ($9.9 million).

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