Reopening Future Metals’ (ASX:FME) Savannah Nickel Mine will be cheaper and carry less risk than previously thought.
The platinum-group metals (PGM) exploration company reveals an independent engineering assessment shows that pre-production capital expenses for a modified plant configuration could be a total of $193 million.
Using the existing Savannah plant is nearly 28% more affordable than the $267 million cost of building a new, standalone processing plant at Panton, according to the 2023 Scoping Study. Relocating contract crushing and ore sorting to Panton could help save a further $22 million.
Additionally, the US$1,556 PGM concentrate basket price has increased by 67% to US$2,600 per ounce between 2023 and 2026. The price hike is hoped to offset inflated material transport and power costs.
Initial open-pit mining will be completed at the same time as processing plant construction. The Panton processing will produce both a PGM concentrate with payable by-products and chromite concentrate through two-stage grinding followed by flotation.
Run-of-mine material will be fed to the primary crusher and ore sorting equipment to separate Reef from dunite. The final product will be transported via sealed public roads to Wyndham for export to overseas customers.
Mining leases have been granted for Panton while the Savannah plant has secured primary operating permits.
“While undertaking this assessment, the team has identified several opportunities with the Savannah plant option that could further reduce upfront capital costs and/or optimise the process,” Managing Director Keith Bowes says.
“The increase in PGM pricing since the 2023 Scoping Study also allows additional project scenarios to be considered, including investigating the potential to deliver immediate cash flows via a larger starter pit and delaying the underground mine development.”
Preparing environmental licences for Panton, completing a new Feasibility Study, and finalising a business case are the next steps. Future Metals also plans to commence an infill drilling program, extensional drilling, and a Definitive Bankable Feasibility Study.
“We anticipate meaningful news flow over the next few months including an updated mineral resource estimate, rhodium assay results, and results from the optimisation work programs, [as well as] results from the alternate Panton/Savannah Scoping Study as we build momentum for the project development,” Bowes says.
The mine has been in care and maintenance since operations were shut down in January 2024 due to falling nickel prices. The company and Zeta entered into a memorandum of understanding in April 2025 to assess technical, economic, and regulatory aspects of using alternate feed sources from Future Metals tenements for the Savannah plant.
Future Metals is a platinum-group metals exploration company with assets in Western Australia’s eastern Kimberley region.
Write to Richard Szabo at Mining.com.au
Images: Future Metals
