Panoramic Resources Limited (PAN) – Settling into a Production Range ~19,000tpaNi

• Accepting that production in FY2010 was lower than expected, and having given guidance for FY2011 of 18,000t to 19,000tNi, Panoramic appears to be settling into a nickel production range of ~18,500tpaNi to 19,500tpaNi or ~19,000tpaNi as shown in our/ERA production scenario forecast.
• Lanfranchi could produce more tonnage (given it was producing at ~80,000tpm on the day of our visit, applying a revised sub-level stoping method), and grades could be higher as the mine moves into the higher grade keel zone of Deacon, while Savannah’s grades may also be higher.
• Although Deacon remains open at depth, as do the other orebodies of Schmitz and the namesake Lanfranchi, PAN’s Lanfranchi mine continues to search for another significant orebody. A new approach has shown that the nickel mineralisation at Lanfranchi appears to be controlled both N/S and NNW/SSE, which has resulted in a number of new targets, along with the Lanfranchi West extension.
• The intersection of 2.9m @ 3.0%Ni in drillhole KUD 810 and EM plate into the deeps below the 900 fault at Savannah opens up another extension to Savannah’s life. A drill drive is planned to be developed in the coming FY to June 2011 to further delineate the upside depth potential at Savannah.
• Panoramic intends to have a significant exploration programme during the coming year of 2010/2011, undertaking deep drilling at Lanfranchi plus drill drives to probe the extensions of the known lava channels. While at Savannah, aside from the drilling beyond the 900 fault, a number of new near mine and regional targets are to be tested following results from the recent higher resolution gravity survey.