Premium Resources (TSXV: PREM) has announced highly encouraging drilling results from its exploration program at the past-producing Selebi North underground mine in Botswana. Two recent drill holes intersected significant intervals of high-grade nickel-copper mineralization, injecting renewed optimism into the company’s plans to revive this key asset.
Drill hole SNUG-24-172, located on the South Limb of the deposit, encountered a remarkable 14.2 meters grading an impressive 1.73% copper, 1.66% nickel, and 0.08% cobalt. Similarly, hole SNUG-24-144, situated on the N2 Limb, intersected 14.4 meters averaging 1.44% copper, 1.24% nickel, and 0.06% cobalt. These impressive grades significantly exceed the average grades of the previously mined orebody, bolstering the company’s confidence in the potential to expand the known mineral resource at Selebi North.
“This exploration drilling program is strategically designed to increase the mineral resource of the Selebi North deposit by systematically testing large, highly conductive zones identified through borehole electromagnetic (BHEM) surveys,” stated Sean Whiteford, President of Premium Resources. “These conductive zones are interpreted to represent significant areas of potential massive sulphide mineralization.”
The Selebi North mine, located 410 kilometers north of the capital, Gaborone, operated successfully for 26 years before being placed on care and maintenance in 2016. Over its lifespan, the mine produced 13.9 million tonnes of ore grading 0.74% nickel and 0.66% copper. Premium Resources acquired the mine and is now focused on its redevelopment.
Last August, the company released an initial resource estimate for Selebi North, outlining 3 million indicated tonnes grading 0.9% copper and 0.98% nickel. Inferred resources were also substantial, totaling 5.83 million tonnes grading 0.90% copper and 1.07% nickel.
These latest high-grade intercepts provide strong evidence that the potential for resource expansion at Selebi North remains significant. The company plans to update the resource estimate for both Selebi North and the nearby Selebi Main deposit in the first half of this year.
The path forward for Premium Resources involves a multi-phased approach. The company intends to complete upgrades to the existing mine shafts at both Selebi North and Selebi Main. Concurrently, construction of a new processing mill is planned to commence in the second half of next year, with the goal of achieving commercial production in 2027-2028.
This ambitious redevelopment plan positions Premium Resources to capitalize on the growing global demand for critical metals such as nickel and copper, which are essential for the burgeoning renewable energy sector, particularly in the electric vehicle market.
While the company faces the challenges inherent in any major mining project, these recent high-grade drill results provide a significant boost to investor confidence and underscore the substantial potential of the Selebi mines project.