Pacific Nickel is locking up prospective Solomon Islands nickel ground
Pacific Nickel is consolidating its hold over the laterite nickel belt that runs between its Kolosori and Jejevo nickel projects on Santa Isabel Island, Solomon Islands.
The company has submitted an application for a third 99.2sqkm prospecting licence – the Bugao Hograno tenement – with approval from local landowners in the area.
Scout drilling by Sumitomo identified areas for additional resource potential and Pacific Nickel Mines (ASX:PNM) is currently reviewing the historical results.
The next step in the process of obtaining the prospecting licence is a meeting of the Solomon Islands Mines and Minerals Board to approve the application which will result in a letter of intent being issued to the company.
This will require that a surface access agreement be reached with the landowners before the company can advance its application further.
“We are pleased that the Solomon Islands Government is willing to allow the company to apply for a third tenement within the Santa Isabel Island nickel laterite belt,” chief executive officer Geoff Hiller said.
“We are also pleased that we have broad support from the landowner groups in the area. We have worked with these local groups to ensure all interests have been aligned, and we thank them for their interest in our projects.”
He added that the good interest from project financiers in respect of the Kolosori Project is testament to the progress made by Pacific Nickel Mines and the committed due process being followed with the Solomon Islands Government.
The company recently held meetings with several prospective offtakers and project financiers in respect of the provision of finance to develop the direct shipping ore (DSO) project.
These discussions are being finalised and the company expects to advise on its preferred financing partner soon.
Work to secure the Kolosori mining lease is also continuing with the Solomon Islands’ Mines Department diligently ensuring that land boundaries have been appropriately addressed in the Mining Lease application.
The landowners and their boundaries are unchanged from what was previously known and the company expects the Mines Department to submit these findings to the Mines and Mineral Board for final sign off.
Kolosori has an easily accessible resource of 5.89 million tonnes grading 1.55% nickel which requires no processing in a DSO model.
It is currently expected to produce 93,450t of contained nickel grading 1.5% nickel, with the option to mine higher grades in excess of 1.6% nickel early in the mine schedule.
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.