- The Savannah Nickel Project delivered $19.5 million in revenue during the September 2019 quarter.
- Independence is offering Panoramic shareholders one IGO share for every 13 PAN shares that they own, or about 47.6c per PAN share.
- The company expects to mine first ore from the Savannah North development this month.
Panoramic Resources Ltd (ASX:PAN) has advised shareholders against taking action to an off-market takeover offer from Independence Group NL (ASX:IGO) yesterday that saw Panoramic shares surge almost 42% in early trade to 46 cents.
The offer is for one IGO share for every 13 Panoramic shares held representing an implied offer price of 47.6 cents per Panoramic share and an equity value of about $312 million.
“Shareholders to take no action”
In a response to IGO’s offer, the company said: “Panoramic Resources notes the announcement from Independence Group NL regarding its unsolicited, highly conditional scrip takeover offer for Panoramic.
“The Board of Panoramic advises shareholders to take no action in respect of Independence Group’s offer or any document received from Independence Group.
“The Board will evaluate the offer and Independence Group’s Bidder’s Statement and provide shareholders with a recommendation in due course.
“Until then, shareholders should take no action."
Independence Group has a relevant interest in almost 25 million shares, representing around 3.8% of the total issued capital of Panoramic.
Savannah Nickel Project
During the September quarter, the company produced 1,342 tonnes nickel, 855 tonnes copper and 64 tonnes cobalt contained in concentrate at its flagship Savannah Nickel Project in the East Kimberley region of WA.
Two concentrate shipments departed Wyndham containing 1,141 tonnes nickel, 606 tonnes copper and 59 tonnes cobalt, with a total provisional value of $19.5 million.
A total of 119,334 tonnes of ore was mined during the quarter ending September 30, a decrease of 16% quarter-on-quarter.
Mining from the Savannah ore reserve continues to have its challenges with production impacted by a localised seismic event in July, resulting in a floor heave on the 1515 level restricting access into the 1490 level area, a key production area for the quarter.
This delayed access to an area containing about 150,000 tonnes of ore, which is now scheduled to be mined in the December 2019 quarter.
The September monthly shipment of 5,146 wet metric tonnes was delayed and departed for China on October 14 with a provisional value of $7.4 million.
Savannah North Development
Significant improvements were recorded in lateral development and raise bore advancement during the quarter.
The twin declines were within 200 metres of the first Savannah North ore by the end of September 2019 with first ore from Savannah North on track to be mined in late November.
The Savannah North ore reserve infill drilling started in June 2019, with 9,298 drill metres completed in the quarter.
As part of the Savannah Project 'Re-start Plan', Panoramic completed a 150-metre extension of the Savannah North 1570 Drill Drive 150 metres to the east to facilitate infill grade control and stope definition drilling of the Savannah North orebody.
In July and August, drilling from the extended drive was conducted using one rig with a second rig mobilised in early September.
At the end of the quarter, a total of 44 holes had been drilled from the extended 1570 Drill drive for a combined total of 8,555 drill metres.
The Savannah North infill drill program has three main aims:
- Provide greater geological and grade detail in the area between 1350mRL and 1390mRL, covering the first three Savannah North production levels at 1340mRL, 1360mRL and 1380mRL - this phase of the infill drill program is now complete;
- Complete an initial drill test of the sparsely drilled area of the orebody above the planned production level at 1380mRL - a total of six holes have been completed in this area to date; and
- Conduct an initial drill test in the vicinity of the Fault Zone and to the east of this zone where the current drill density is insufficient to convert the existing inferred resources in these areas to ore reserves – to date four holes have been completed in this area.