Operations

The Kimberley

Savannah (100% Panoramic)

Since February 2008, exploration at Savannah has been focused on the delineation of the Lower Zone Resource below the 500 Fault. This culminated with the release of the Lower Zone Resource estimate of 50,120 tonnes contained nickel in June 2009. The new Lower Zone Resource incorporates all mineralisation associated with the continuation of the Savannah Intrusion below the 500 Fault down to approximately 900 metres below surface (1450mRL). At 1450mRL a mafic dyke, intruding a sub-horizontal fault (900 Fault) displaces the Savannah Intrusion to the north and east by a distance of 100 to 150 metres.

Drill hole KUD810 was drilled during May and June 2009 to test for the Savannah Intrusion below the mafic dyke at 1450mRL. The hole passed through the mafic dyke between 560 to 593 metres, before skimming in and out of the Savannah Intrusion and associated “Savannah Style” mineralisation to 910 metres depth.  Within this zone, the best mineralised intercepts include 8.65 metres at 1.72% nickel from 620.80 metres, 1.40 metres at 2.50% nickel from 666.76 metres and 2.90 metres at 3.00% nickel from 786.0 metres.  At 910 metres the hole entered the Turkey Creek Gabbro and was terminated in this unit at 1,029 metres, approximately 1,270 metres below surface.

A down-hole electromagnetic survey (DHTEM) performed on KUD810 produced a strong continuous EM anomaly from 530 metres to the end of survey depth at 875 metres, confirming the presence of “Savannah Style” mineralisation in close proximity to the hole.

The DHTEM data from hole KUD810 provides convincing evidence that the Savannah Intrusion and its associated mineralisation continues for at least 300 vertical metres below the current base of the Lower Zone Resource at 1450mRL.

Panoramic will continue to explore this area of the Savannah Intrusion as drill access permits. In 2009/10, three additional drill holes have been planned to follow-up on the success of KUD810.

East Kimberley Tenements (JV Agreement with Thundelarra)

In June 2009, Panoramic entered into an Exploration Farm-in Agreement with Thundelarra Exploration Limited (“Thundelarra”) to earn up to 61% in Thundelarra’s East Kimberley tenements. The Thundelarra tenements will greatly expand Panoramic’s land holding around the Savannah Nickel Mine and the Copernicus Joint Venture Project (Panoramic 60% / Thundelarra 40%).

The East Kimberley tenements lie within the Halls Creek Mobile Belt which is highly prospective for nickel, copper, cobalt and PGM mineralisation.

Through the East Kimberley Joint Venture, Panoramic gains access to Thundelarra’s large, and in some cases under-explored ground package in the vicinity of our Savannah operations, while Thundelarra benefits from Panoramic’s commitment to spend significant exploration funds targeting new nickel sulphide discoveries, while still retaining a major interest in the project tenements.  The strategic position of Panoramic’s 1 million tonne per annum processing plant and associated infrastructure will allow for the rapid exploitation of any new discovery which will benefit both parties.

Panoramic has committed to spend $750,000 in the first twelve months and a total of $3 million within four years to earn 61% of the project. Any new tenements acquired by either party within 10 kilometres of any East Kimberley Agreement tenements (Area of Influence) will be included in the project tenements.

Panoramic will commence exploration work on the project tenements in the 2009 field season.

Figure 1: East Kimberley Earn-in Joint Venture area