Summary Nickel spot prices were higher the last month. Nickel market news – Wood Mackenzie is expecting a better H2 from both the stainless and battery segments. Nickel set to flood the LME, turning metal squeeze into glut. Nickel company news – Vale sells a 13% equity interest in Vale Base Metals Limited (VBM) to […]
EL2366
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Area2,380+hectare |
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Nickel176+metric tons |
Commodity Nickel ore
Location Milne Bay Province
Deposit 1,5% Nickel ore
Drilling 80 drilling Holes (641m)
EL2366 is a pioneering project for Solway in PNG. It has been active since the end of 2015 and has been successfully extended for three terms, thanks to the high support of the local community. South Fergusson EL area is covered with a network of well-built hauling roads constructed by Logging Company in 2013-2019 years and Sebutuya pier located within 6-7 km from the closest potential pit area. Therefore, Fergusson Project is highly suitable for setting up DSO.
Laterite nickel resource is estimated at 1,8 Million wet metric tones with average grade of 1.7%. After extensive mechanical drilling in 2020 South Fergusson project is being prepared for next drilling phase which shall allow conducting Feasibility Study, ML application and eventually starting mining operation.
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Area7,040+hectare |
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Nickel112,000+metric tons |
Commodity Nickel ore
Location Milne Bay Province
Deposit 1,5% Nickel Ore
Drilling 188 Drilling Holes (1020m)
This project is located in Milne Bay province, the safest of all regions in PNG. It consists of two licences EL 2366 was issued in 2015 and EL 2482 was issued in 209. They have adjacent borders and therefore shall be developed as one mining project. South Fergusson EL area is covered with a network of well built hauling roads constructed by one of logging companies in 2013-2019. On the south border there is a pier which is only 6-7 km away from the closest potential pit area of the project. Fergusson can be fairly quickly to Direct Shipment Project
Laterite nickel resource of Fergusson is estimated at 11,7 million wet with average grade of 1,5%. After hand auger drilling works in 2015-2018 and extensive mechanical drilling in 2021 Fergusson Project is being prepared for next drilling phase which shall allow conducting Feasibility study, ML application and eventually start mining operation.
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Area10,160+hectare |
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Nickel1,800+metric tons |
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Chromite2,500+metric tons |
Commodity Nickel and Chromite ore
Location Morobe Province
Resource Potential 53+ mln wmt of nickel ore and 74+ mln wmt of chromite ore
Drilling 83 Drilling Holes (416m)
South Bowutu project is located inwards of Bird’s Tail Peninsula within Owen Stanley Range. The license area has been extensively explored since early 2016. Due to Mineral Agency regulations, it has been extended for two consequent times with compulsory relinquishment of the territory by 50%. The location of EL2384 is challenging for exploration teams to operate as logistics are highly dependent on helicopter and fixed-wing deliveries, but on the other hand, the area is not densely populated and has a lot of flat regions, which are ideal for the formation of laterite profile rich in nickel.
Laterite nickel resource is estimated at 53 mln wmt with an average grade of 1.6%+. After further core diamond drilling with a more narrow grid, a better understanding of reserve quality and quantity can be achieved.
Potential chromite resources of South Bowutu are up to 74 mln wmt with an average grade of 7,0% Cr203
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Area25,601+hectare |
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Nickel1,900,000+metric tons |
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Chromite11,200,000+metric tons |
Commodity Nickel ore & Chromite
Location Morobe Province
Resource Potential, Up to 180 mln wmt of nickel ore and 204 mln wmt of chromite ore
Drilling 67 Drilling Holes (299m)
EL2568, located in Morobe Province, started with EL approval by the PNG Minister of Mine in 2019. Its chromite deposits are advantageously located on the shoreline, and in the vicinity of the potential processing area, there is access to clean water from lakes and rivers, which is a virtue for enrichment plant operation. Identified Nickel ore deposits are located further away from the sea but are still relatively feasible for direct shipment operations.
Laterite nickel resource estimated at 180 Million wet metric tonnes with an average grade of 1.6%. There is a high potential of finding more nickel laterite fields as exploration works are at their very initial stage and cover less than 25% of the EL’s areas.
Chromite resources of the Salus project are estimated at 240 Million wet metric tonnes with an average grade of 7,0%. Metallurgical analysis of chromite sands bulk sample in Australian lab in 2020 showed that HM (heavy minerals) enrichment might reach 27,3 %, which is considered reasonably high among buyers on the international market.