Panoramic plans gold, nickel growth

Panoramic Resources has announced plans to expand its nickel output while also bringing the Gidgee gold mine back to production with targeted output of 100,000 ounces per year.

Managing director Peter Harold told journalists at the Diggers & Dealers conference that Panoramic’s target was to lift nickel output from 18,000 tonnes per annum to 25,000 tonnes within two years.

He said this would be split between its Savannah operation in the Kimberley and Lanfranchi project in the Goldfields, which together account for 10 per cent of Australia’s nickel output.

Strong nickel prices have placed the company in a healthy financial position, with cash reserves of $100 million, and it plans to use some of that money to bring the Gidgee gold mine back into production.

Mr Harold said the company anticipates spending about $20 million on exploration at Gidgee, and a further $20 million to refurbish the mothballed mill and to upgrade the camp, airstrip and other infrastructure.

Its aim is to boost resources from a current 310,000 ounces (at 5.2 grams of gold a tonne) to 500,000 ounces within two years, before commencing production.

Panoramic paid $15.5 million to acquire the Gidgee project from underperforming gold miner Apex Resources in February.

Mr Harold said the Gidgee purchase was part of a broader strategy to diversify Panoramic’s operations, across base metals, gold and platinum group metals.

“We’ve been looking to diversify for a number of years,” he said.

Another step in the diversification strategy was an investment in South America-focused copper explorer Hot Chili.