Pacific Nickel is closing in on upgraded Kolosori nickel resource
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Pacific Nickel is on track to complete Stage Two drilling to increase the confidence in existing resources at its Kolosori nickel project in the Solomon Islands in November.
To date, the company has drilled 90 of the 151 planned infill holes that were based on the mine planning and scheduling work carried out by Mining One and the company with samples from the first 44 holes now with Australian Customs.
Kolosori currently has a resource of 5.89 million tonnes grading 1.55% nickel, 40% of which is in the higher confidence measured and indicated categories.
Pacific Nickel Mines’ (ASX:PNM) drill program is intended to move resources in the inferred category up to the other two categories to support completion of a definitive feasibility study, which is expected to be completed by the end of 2021.
Samples from the first stage 83-hole program are already at ALS Brisbane for assaying.
These include 11 metallurgical holes that will provide the information required for marketing of the DSO project.
Kolosori is one of two advanced direct shipping ore nickel projects that the company holds on Isabel Island, Solomon Islands.
It hosts a resource that can be dug up and sold with no processing, which translates to low capital and operating costs.
The project is also close to the coast, which minimises transport requirements, and enjoys local landowner support – a critical requirement in the Pacific country.
Pacific Nickel holds a 80% interest in Kolosori with local landowners owning the remaining 20%.
Drilling and the upcoming resource upgrade are not the only steps that the company is taking to develop the project.
It recently lodged the Environmental and Social Impact Assessment with the Solomon Islands’ Ministry of Environment.
Early works development is also being refined with quotes received from local contractors to carry out initial road construction together with preparation for a wharf, camp site and direct shipping ore stockpile.
Resindo has been appointed to carry out the front-end engineering and design work for the project with a focus on wharf construction while discussions have started with potential DSO offtake partners.
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.