Panoramic Resources Released Updated Savannah Ore Reserve & Mine Plan

Panoramic eyes a potential restart of Savannah mine in the first half of 2021

KEY POINTS

  • Updated Mine Plan based on an updated Ore Reserve estimate completed for the Savannah Project by specialist consultants, Entech § Outcomes confirm an attractive, near-term nickel sulphide mine restart opportunity
  • Total Savannah Ore Reserve (including Savannah North) at 30 June 2020 of 8.3Mt @ 1.23% Ni, 0.59% Cu and 0.08% Co for 102kt Ni, 48.5kt Cu and 7kt Co contained metal
  • Updated Mine Plan includes some Inferred Resources located near Ore Reserves, which increases the mining inventory to 10.4Mt @ 1.22% Ni, 0.54% Cu and 0.08% Co for 127kt Ni, 56kt Cu and 8.5Kt Co contained metal
  • The Savannah North orebody remains open along strike and at depth, providing significant potential to bring more material into the Mine Plan with future underground drilling
  • Attractive Base Case financial outcomes, including pre-tax cash flow of A$468M and NPV8 of A$262M1 § Consensus Case (using consensus commodity price forecasts) delivers pre-tax cash flow of A$637M and NPV8 of A$343M2
  • Key operational outcomes of the Mine Plan include:
    • ‒ Increased mine life of approximately 13 years, with majority of ore sourced from the Savannah North orebody ‒ Average annual production for years 1 to 12 of 8,810t Ni, 4,579t Cu and 659t Co in concentrate
    • ‒ Average site All-in Costs for years 1 to 12 of A$7.54/lb payable Ni (US$5.27/lb payable Ni), net of Cu and Co by-product credits
  • Underground pre-production development works planned to be funded from existing cash reserves and including completion of the Fresh Air Raise (“FAR 3”) ventilation works, will commence in August 2020 and are expected to be concluded by the end of March quarter 2021, allowing for a potential restart in the first half of 2021
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