
Kolosori Nickel Project (80%)
Overview
The Kolosori Nickel Project is an advanced stage direct shipping ore nickel laterite project progressing to development located on Isabel Island in the Solomon Islands. The project has several positive aspects including close proximity to the coast, no processing requirements, low capital route to direct shipping ore production and local landowner support.
Following the granting of a Mining Lease in September 2022 the Company has prepared a Definitive Feasibility Study for the Project which was released in early February 2023. The Company holds an 80% shareholding in Pacific Nickel Mines Kolosori Limited (“KNML”), the holding company of ML 02/22.
The traditional landowners of the area own the remaining 20% of KNML. ML 02/22.

Definitive Feasibility Study (DFS)
Two production scenarios were provided by Australian Mines Design and Development PL (AMDAD in the DFS). The first incorporates the ore reserve (97%) and a small proportion of inferred resources (3%) – referred to as the “Base Case”. The second incorporates the ore reserve (68%) and a larger proportion of inferred resources (32%) – referred to as the “Expanded Case”. The Expanded Case includes inferred resources which either naturally fit within open pits as part of the Base Case or have sufficient continuity to be included in stand-alone pits.
A reserve statement prepared by AMDAD was released as part of the DFS.
Item | Base Case ($US) | Expanded Case ($US) |
NPV Post-Tax | $64m (A$91m) | $83m (A$118m) |
IRR Post-Tax | 156% | 170% |
Payback Period (Months) | 6 | 6 |
Ore Mined | 3.8 Mwmt @ 1.57% Ni | 6.1 Mwmt @ 1.51% Ni |
Peak Annual Ore Shipping (M wmt pa) | 1.40 | 1.45 |
Mine Life (years) | 3.0 | 5.8 |
Initial CapEx | $21.3m | $21.3 |
LOM Sales Price 1.5% Ni CIF China (USD/wmt) | $75.00 | $75.00 |
LOM C1 Costs ($/wmt sold FOB) | $31.08 | $30.70 |
LOM Taxes and Royalties ($/wmt sold FOB) | $2.96 | $2.84 |

The Company engaged HBS PNG Pty Ltd, a well-established PNG mining contractor, in an early contractor involvement arrangement who provided actual mining contractor rates for incorporation into the DFS.
The key elements of the development of the Project include:
- Haul road
- Wharf and port facilities including small stockpile area
- Main Stockpile Area to the east of the wharf
- 200-Man Main Camp
- 50-man Construction Camp.
- Contract Mining Facility
- Road access from haul road to eastern stockpile area and main camp
- Small bridge to cross creek from bottom of haul road to main stockpile and camp


Kolosori JORC (2012) Resource Estimate
LITHOLOGY | RESOURCE CATEGORY | Dry Kt (‘000) | Ni % | Co % |
TRANSITIONAL | MEASURED | 127 | 1.81 | 0.08 |
INDICATED | 583 | 1.52 | 0.07 | |
INFERRED | 1,300 | 1.33 | 0.07 | |
SUB TOTAL | 2,009 | 1.51 | 0.07 | |
SAPROLITE | MEASURED | 893 | 1.73 | 0.02 |
INDICATED | 2,264 | 1.48 | 0.02 | |
INFERRED | 4,040 | 1.42 | 0.02 | |
SUB TOTAL | 7,197 | 1.48 | 0.02 | |
TOTAL (M+I+I) | 9,206 | 1.46 | 0.03 |
LITHOLOGY | RESOURCE CATEGORY | Dry Kt (‘000) | Ni % | Co % |
TRANSITIONAL | MEASURED | 127 | 1.81 | 0.08 |
INDICATED | 469 | 1.62 | 0.07 | |
INFERRED | 812 | 1.48 | 0.06 | |
SUB TOTAL | 1,408 | 1.56 | 0.07 | |
SAPROLITE | MEASURED | 846 | 1.77 | 0.02 |
INDICATED | 1,833 | 1.57 | 0.02 | |
INFERRED | 2,989 | 1.53 | 0.02 | |
SUB TOTAL | 5,668 | 1.58 | 0.02 | |
TOTAL (M+I+I) | 7,076 | 1.57 | 0.03 |
Exploration Targets
Exploration Targets of 2.5Mt to 4.0Mt at 1.2% – 1.6% Ni have been identified in the proximity of the current Mineral Resource envelope. This target range reflects a potential quantity and grade and is conceptual in nature only as there has been insufficient exploration to prepare an MRE. It is uncertain if further exploration will result in the estimation of a Mineral Resource. This is an increase over the previously reported extensional targets of 1.94 to 3.19 Mt at 1.2% – 1.6% Ni2.
These exploration targets typically represent extensions to the known nickel mineralisation along topographic highs within the project areas. These topographic highs are interpreted to consist of similar nickel bearing regolith profiles as seen within the resource areas. Planned work for these areas includes continued inspection of surface exposures, XRF readings of the Fe Cap material and then drilling to confirm targets.
