Operations

The Copernicus Project, a nickel sulphide orebody located 50 kilometres south of the Savannah Project, is currently on care and maintenance. Panoramic is the operator of the Copernicus Joint Venture (Panoramic 60%, Thundelarra 40%), and following the completion of a Feasibility Study the joint venture partners agreed to develop the open pit mining operation at Copernicus and supply the ore to the Savannah Mill for toll treating.

Due to continuing weakness in the nickel price, the Company and its Joint Venture partner, Thundelarra Exploration, decided to suspend operations at Copernicus. The open pit mine was placed on care and maintenance in January 2009 pending a sustained improvement in the nickel price. Approximately 8,000 tonnes of ore grading 1.1% Ni was mined during the December 2008 quarter and has been stockpiled at the Savannah mill awaiting treatment which is anticipated to occur during the March 2009 quarter, subject to mill availability. At the cessation of open pit production, 20,000 tonnes of ore grading 1.47% was mined and will be stockpiled for treatment at the Savannah mill.

The open pit and associated infrastructure are fully developed and are ready to be opened at short notice when the nickel price recovers to a level that will provide both parties with an acceptable return on their investment.