Canadian exploration and development company Premium Nickel Resources has completed the acquisition of the nickel, copper, cobalt, platinum-group elements (Ni-Cu-Co-PGE) Selkirk Mine in Botswana, together with associated infrastructure and four surrounding prospecting licences formerly operated by Tati Nickel Mining Company (TNMC). With the acquisition now complete, ownership of the Selkirk Mine has been transferred to the company.
The company began comprehensive due diligence programmes on the Selkirk Mine in 2020 and has since continued to verify old data and collect new data, including completion of a 'concept-level' metallurgical study. The metallurgical testing carried out at SGS Lakefield, Ontario, Canada, will help to establish the Companies re-development plan to produce separate copper and nickel-cobalt concentrates.
Keith Morrison, CEO, commented: "Completing the transfer of ownership of the Selkirk Mine concludes PNRL's announced asset purchases with the Liquidator of TNMC in Botswana. On a voluntary basis, PNRL will move forward with completing its initial NI 43-101 technical report on Selkirk and the surrounding prospecting licenses. Concurrently, we will prioritise the preparation and exploration requirements that will support our proposed redevelopment plans for new modern operations with state-of-the-art processing and tailings management facilities. The re-development plan will encompass modern best practices, using less power, less water and assuming conservative commodity prices."
The Selkirk Mine is situated 28 kilometres south-east of the town of Francistown, and 75 kilometres north of the 100% owned Selebi Mines. The Selkirk mining license covers about 14.6 square kilometres and the four prospecting licenses cover 126.7 square kilometres. Production at the Selkirk Mine took place between 1989 and 2002 with Anglo American mining high grade Ni-Cu massive sulphides and producing 1 million tonnes at 2.6% Ni and 1.5% Cu. Thereafter, in 2006, LionOre Mining International (LionOre) published a technical report in accordance with NI 43-101, which reported a historic indicated mineral resource estimate of 6.0 mt grading 1.06% Nickel and 0.36% copper at a cutoff grade of 0.75% Ni.
PNRL intends to complete a technical report, in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), to advance its understanding of the Selkirk property. The technical report is being prepared on a voluntary basis, as the Selkirk property is not a material property of the company pursuant to NI 43-101. Following the completion of the technical report, the company currently anticipates that a work plan will be proposed for the Selkirk Mine re-development that will include drilling to better define the existing resources and search for additional resources, develop a 3D geological and structural model, and complete additional metallurgical studies.