Pacific Nickel Mines Ltd. estimates the Jejevo tenement on Isabel Island has 14.42 million metric tons of nickel at a grade of 1.29%.
The company said there is also a conceptual resource extension target at Jejevo of a further 3.0 million to 5.0 million tons, at a grade of 1.2% to 1.6%.
Pacific Nickel, which holds an 80% interest in the Jejevo tenement and the nearby Kolosori project, has begun feasibility studies on both projects.
It is understood the license for Jejevo was recently renewed for two years beginning October 2021, and Pacific Nickel intends to apply for a mining lease for Jejevo in 2022.
The markets reacted positively to the news, with Gunsynd PLC shares going up on Thursday. Pacific Nickel is the main investee company involved in the initial mineral-resource estimate for a nickel prospect on Isabel.
Shares for Gunsynd PLC were up 0.12 pence, or 12.5%, at 1.13 pence at the close of trading on Thursday 7th October.
"It's pleasing to see momentum gathering on this project. Much progress has been made in 2021 and we look forward to receiving news on mining license applications in the future," Gunsynd Executive Chairman Hamish Harris said.
With logging receipts declining, made worse by the current pandemic, the mining sector has been touted as the next big money earner for Solomon Islands.
Nickel deposits in Isabel are of the highest standards, but extracting nickel in Isabel has been problematic, with much of the action in the court room.
Those familiar with the mining industry say that more needs to be done to improve the regulatory framework.
A key piece of legislation governing the resource sector is currently under review, but progress is expected to be slow. It will be a major challenge to strike the right balance in ensuring that mining projects provide economic benefits to Solomon Islanders—both to local communities and through a fair contribution to government coffers—while remaining attractive to foreign investors.
Source: News Desk With Market Watch