Pacific Nickel Mines (ASX:PNM) reports it is working on the Kolosori Definitive Feasibility Study (DFS) to achieve commercial nickel laterite direct shipping ore cargoes from mid-2023 at the Kolosori direct shipping nickel ore project in the Solomon Islands.
The DFS is the next step for the company in its plans to start shipping nickel ore from the Project after Pacific Nickel was recently granted the Mining Lease for the Kolosori Project.
Over the past few months, Pacific Nickel has been concentrating on the design of the haul road and the initial mining area.
This mine design work has led to discussions with established mining contractors predominantly in Papua New Guinea.
Pacific Nickel has now engaged with HBS PNG, a well-established Papua New Guinean mining contractor, in an early contractor involvement arrangement, which will provide actual mining contractor rates to be incorporated into the DFS.
The company believes that PNG mining contractors have the most relevant mine pioneering and operating experience in similar geographical and tropic mining conditions.
They also have the ability to work in the Solomon Islands, including also being able to work with the Company’s existing local contractors.
Pacific Nickel also reports that a detailed timber wharf design has recently been completed by the Company’s design consultants Resindo Engineers, based in Indonesia, and experienced in the design and construction of southeast Asian nickel laterite operations.
A timber wharf, normal for these types of operations, will likely use locally available timbers to minimise cost and construction time.
When the DSO loadout wharf and haul road to the mining area are in place, and the mining contractor is mobilised, the Kolosori Nickel Project is expected to ramp up to full production (around 1.3 wet Mt per annum of direct shipping nickel ore) during 2023.
Mining DSO operations are expected to commence in the second quarter of 2023 after the wet season.
One of the key components of the DFS is confirmation of the water content of the DSO ore, which is stockpiled prior to shipping.
Laboratory testing by consultants ATC Williams has demonstrated that moisture content of Kolosori ore appears to be consistent with other laterite/saprolite ores mined elsewhere in tropical environments.
Pacific Nickel CEO Geoff Hiller said now that the Company has been awarded a Mining Lease, it is progressing the development of the Kolosori Nickel Project.
“We are looking to expedite the construction of the DSO load out wharf and the haul road to the initial high-grade mining area this year”
“We are looking to expedite the construction of the DSO load out wharf and the haul road to the initial high-grade mining area this year, the two key development areas that allow mining and shipping of the ore.
This should allow the project to ramp up to full production (around 1.3 million wet metric tonnes per annum of direct shipping nickel ore) during 2023.
We are working closely with the landowners and local contractors and appreciate their support in the delivery of the project.”
Pacific Nickel has recently constructed a trial ore stockpile which has been designed to blend ore types and approximate the characteristics of stockpiles expected during DSO production and shipping.
This follows previous test pitting and test stockpiles constructed in the Early Works Program which established that the ore was suitable for commercial DSO shipping.
Water content monitoring of the ore on the trial stockpile has commenced and is expected to be carried out over the next four to six weeks. The results from this trial will be incorporated into the DFS.
Consultants Mining One are currently updating the Kolosori Resource estimate which will be reported soon.
This will lead to a maiden Reserve Estimate for the project, to be undertaken by Australian Mine Design and Development (AMDAD).
Pacific Nickel is expediting the wharf and haul road construction, together with the establishment of a construction camp.
This should allow the project to ramp up to full production during 2023.
The company is in discussions with the local contractor who successfully completed test pits in February and March this year to commence this construction as soon as possible.
All the work contemplated are supported by environmental and social plans which will be implemented as was done successfully for the Early Works Program.
Pacific Nickel is working closely with Glencore (ASX:ZGI) to complete the agreement for US$22 million project financing facility and DSO offtake sales.
Pacific Nickel is an ASX-listed nickel explorer and developer with two near term development assets, the Jejevo and Kolosori Nickel Projects located on Isabel Island in the Solomon Islands.
