Panoramic Resources Ltd (ASX:PAN) mined 129,522 tonnes of ore at 0.98% nickel, 0.57% copper and 0.05% cobalt from its flagship Savannah Project in Western Australia during the December quarter.
Mined tonnes were up 9% for the quarter while nickel grade was down 21% as per the mine plan during the development progress.
Metallurgical recoveries were broadly in line with target recoveries.
The Savannah North orebody was reached in November 2019 with a transition to mining at Savannah North expected to increase production and grade at the project.
Furthermore, a tender process has commenced for contract underground mining to replace current owner-operator mining.
Group cash position at $14.9 million
Panoramic has a strong balance sheet with cash of $14.9 million which includes $10.5 million from the Zeta Bridging Loan.
Additional funds from the retail component of the recent rights issue are expected to be received this month and increase the cash position to $18.3 million.
Discussions continue with third parties
Independence Group NL (ASX:IGO) has declared its intention to allow its unsolicited off-market takeover offer for Panoramic to lapse on 17 January 2020.
The company continues to provide due diligence access to third parties and remains in discussions around the potential for a transaction proposal.