Premium Nickel Resources (PNR) has commenced the second phase of its strategy to develop the past-producing Selebi North and Selebi Main mines.

According to the company, underground drilling has commenced at the Selebi North deposit, with the initial phase targeting the historic resource area in an effort to expand the resource and demonstrate upside potential. The initial objective of defining a mineral resource estimate on the Selebi Mines in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (NI 43-101) and, pending positive results, is the completion of a preliminary economic assessment (PEA) on the Selebi Mines.

“Underground infrastructure refurbishment is ongoing and includes excavation and development of nine drill bays and exploration drifts totaling 320 metres. In addition, the company is studying possible southward extension of the primary exploration drift at Selebi North, to facilitate drilling to test the borehole electromagnetic (BHEM) targets indicating that mineralization is continuous between the Selebi Main and Selebi North Mines,” said the company in a statement, issued this week.

The planned underground drill program at Selebi North comprises approximately 52 holes, totaling approximately 32,000 metres. Drill holes collared from the Selebi North underground development will primarily target the historic mineral estimate and its down-plunge extent, supported by high conductance sources of BHEM anomalies identified during the Company's 2022 and 2023 BHEM program.

The program will also test targets located to the south of the Selebi North historical workings to gather additional information as to whether the known Selebi North and Selebi Main deposits are part of a single mineralized system and are connected at depth. PNR Chief Executive Officer, Keith Morrison said the primary focus of the company is and will continue to be, the ongoing resource development work relating to the Selebi North and Selebi Main properties, and the area in-between. “The start of our underground drilling program is an important milestone.

It comes after the successful preliminary refurbishment of the Selebi North (#4) shaft and declines, including safety, power, ventilation and pressurized air support and the procurement of our initial underground mining equipment, including three drill rigs and one blasting rig. “We have also hired and trained a staff of local mine workers to operate the mine in a safe and compliant manner,” he said.

Morrison further said the company is also actively exploring alternative approaches to ore processing and tailings management that do not rely on traditional smelting methods and are distinct from those described in previous economic studies. “Initial hydrometallurgical test work is currently in progress at SGS laboratories in Lakefield, Ontario with the objective of defining a processing stream that will increase Ni-Co recoveries.”