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Panoramic commences nickel ore production at Savannah ahead of schedule

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(Kitco News) - Panoramic Resources (ASX:PAN) today announced that underground development and ore production has commenced ahead of schedule at the Savannah nickel project in Western Australia, with development and ore production activities well underway.

Mining activities are being conducted by leading underground mining contractor Barminco, a subsidiary of Perenti Global, with which the company has executed a four-year contract worth approximately $280M.

In a statement, the company said that building of an ore stockpile on the surface has commenced and that it looks forward to achieving targeted 100,000 tonnes on the surface prior to turning on the processing plant. The company added that Savannah site activities on track to support first concentrate shipment target of December 2021.

Panoramic Resources owns the Savannah nickel project in the East Kimberley, which was successfully commissioned and operated from 2004 until 2016 before the mine was placed on care and maintenance. The mine was recommissioned in 2018 before operations were temporarily suspended in 2020. Panoramic has completed an updated Mine Plan for Savannah which has outlined an attractive near-term nickel sulphide mine restart opportunity. The Board of Panoramic approved the restart of Savannah in April 2021 with a target of first concentrate shipment by the end of 2021.

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