Pacific Nickel has upgraded both the overall tonnage and grade of the resource at its Kolosori nickel project in the Solomon Islands as it moves to start DSO production in mid-2023.
Resource at the project now stands at 7.08Mt grading 1.57% nickel at a 1.2% nickel cut-off, or 111,000t of contained nickel – a 17% increase in total Mineral Resource tonnage and a 3% increase in grade from the previous estimate of 6.02Mt at 1.52% nickel. This equates to an approximate 20% increase in contained nickel.
Pacific Nickel Mines (ASX:PNM) had updated the resource to reflect the completion of a detailed LIDAR topographic survey over the Kolosori Resource area and the application of in-situ bulk density data totalling 2,957 readings using both the Archimedes and Caliper measurement methods.
Further drilling is planned in 2023 to upgrade Inferred Resources and test extensions to the current deposits.
“The increase in resource combined with the revised exploration target and noting that the production is based on wet metric tonnes gives us a clear indication that we are looking at a materially increased mine life for the Kolosori project,” chief executive officer Geoff Hiller said.
“We look forward to re-establishing a regional exploration program in 2023 to further expand the Kolosori resource base.
“The increased grade and tonnage details are now being factored into the Definitive Feasibility Study, due for release in December.”
Kolosori and DSO production
Kolosori is an advanced stage direct shipping ore nickel laterite project located at the southern end of Isabel Island, in the Solomon Islands.
With a mining lease in place, the company has already ramped up activities aimed at enabling commercial shipment of nickel laterite.
This included work on a 50-man construction camp and the DSO load out wharf.
Once the DFS is completed, Pacific Nickel expects to produce about 1.3Mt wet metric tonnes per annum of DSO nickel ore.
This article was developed in collaboration with Pacific Nickel Mines, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.