WA-based underground nickel sulphide miner Panoramic Resources [ASX:PAN] provided an update on its Savannah North drill results earlier on Tuesday morning.
Panoramic says its drilling results indicate mineralisation thickness and grades that are either in line or ahead of expectations, as based on previous resource modelling for the same area of the mine.
The results will underpin the next phase of production development for the Savannah North orebody.
PAN’s share price has been bumped down 20.5% in the past month and more than 55% in the past year.
It’s been struggling against sector and market averages, down 57% and 60%, respectively:
Source: TradingView
Panoramic provides positive drill results for Savannah North
In completing its latest infill resource drilling at Savannah North below the 1321 level, the miner is encouraged the next phase of production development at the mine can soon begin down the 1151 level.
The miner posted positive results for the infill resource definition drilling, which it said is advancing to plan; ongoing drilling reveals Savannah North mineralisation, which remains open down-plunge towards the western areas of the site.
PAN posted the results with ‘increasing mining confidence’, flagging indications of mineralisation thicknesses and grades meeting and surpassing initial expectations based on previous resource modelling.
Some of the ‘better’ results the company returned include:
- ‘KUD2058: 35.40m @ 1.59% Ni; 0.69% Cu; 0.13% Co
- ‘KUD1982: 29.80m @ 2.19% Ni; 0.93% Cu; 0.17% Co
- ‘KUD2043: 29.25m @ 1.83% Ni; 0.82% Cu; 0.14% Co
- ‘KUD2057: 27.00m @ 1.86% Ni; 0.88% Cu; 0.15% Co
- ‘KUD2039: 26.70m @ 1.77% Ni; 0.65% Cu; 0.14% Co
- ‘KUD1981: 23.80m @ 2.03% Ni; 0.82% Cu; 0.16% Co’
Commenting on the drill program, Managing Director and CEO Victor Rajasooriar said:
‘The latest results returned by the drill program to infill the Savannah North orebody below the 1321 level demonstrates the robustness of the Resource. The consistent mineralisation thicknesses and higher grades the Savannah North orebody continues to display below the 1321 level are particularly encouraging. We look forward to detailing the impact these results will have on the next Savannah North Mineral Resource estimate. Drilling is ongoing and further updates will be provided in due course.’
Drilling to test below the 1321 level has been intermittent due to a drill rig program that has included grade control drill programs for testing at higher levels and follows the conclusion of drill testing above the 900 Fault, completed at Savannah in September last year.
Once 1321 drilling is finalised, the company expects the drill results to have a positive impact on accessible mineral resources and to support the continued mining development of the Savannah North orebody.
For the half year ended 31 December 2022, Panoramic reported $107.52 million in revenue, which was $85.8 million more than the same time the year before.
However, it also took a loss of $13 million more than the prior first half of $11.8 million. As a result, the company paid no dividends to shareholders.
As the drilling is still ongoing, the company expects to provide further updates in due course:
Source: PAN
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Regards,
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For The Daily Reckoning Australia
