This ASX explorer now has TWO solid nickel resources in play
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While most explorers are perfectly happy to be able to deliver one nickel project, Pacific Nickel is now a step closer towards delivering two projects in the Solomon Islands.
This follows its definition of an initial JORC resource of 14.42 million tonnes grading 1.29% nickel for its Jejevo tenement, nearly half of which is in the higher confidence indicated category.
With this resource, Pacific Nickel Mines (ASX:PNM) now has defined resources at two advanced stage direct shipping ore nickel laterite projects on Isabel Island in the Solomon Islands.
Both its Kolosori and Jejevo projects are located close to the coast, have no processing requirements, a low capital route to DSO production and local landowner support.
The company recently completed a feasibility study and applied for a mining lease over the Kolosori project, which has a JORC resource of 7.28Mt at 1.46% nickel.
“The initial 2012 JORC resource estimate of 14.4 million tonnes at 1.29% Ni at a 1%Ni cut off is the first step in the development of the Jejevo project,” chief executive officer Geoff Hiller said.
“We will now progress this project in a similar fashion to our Kolosori nickel project where we have recently completed a feasibility study and have applied for a mining licence.”
He added that the company is now well positioned to complete a feasibility study and apply for a mining licence at Jejevo in 2022.
The definition of a maiden resource at Jejevo comes after a validation drilling program completed in June 2021 had confirmed historical drilling data.
Potential for further growth comes from a conceptual exploration target of between 3Mt and 5Mt grading between 1.2% nickel and 1.6% nickel.
Pacific Nickel adds that an infill drill program is currently being designed to increase the confidence and test for extensions of the resource estimate.
This will use a number of infill holes drilled at a closer spacing to increase resource estimates in the higher confidence measured and indicated categories.
Drilling is expected to start as soon as possible next year.
The company also plans to start the environmental impact statement, which includes water sampling, and ecology and social studies.
This will be carried out by local contractors as soon as practicable and will follow the same procedures as previously carried out for the Kolosori project EIS.
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.