Multi-million-dollar exploration spurs new hope for Phikwe

Massive exploration activity worth millions of US dollars is underway just three kilometres outside the once-thriving mining town of Selebi-Phikwe.Behind the scenes, engineers, geologists, and contractors are hard at work as Premium Nickel Resources (PNR) Botswana, the company that bought the Selebi North and South Shafts, pushesforward with intensive studies that could pave the way for the reopening of the mine.The extensive research conducted both locally and abroad has produced encouraging results. Contrary to early assumptions, when PNR took over the Selebi shafts, it is no longer necessary to use a smelter to separate the copper and nickel ores.New findings show that the minerals can now be processed into saleable concentrate, a major breakthrough that brings PNR closer to restarting operations.The company is currently engaged in a six-month exploration programme costing over USD 40 million, with exploration drilling as its central activity. PNR, which is listed on the Canadian StockExchange and trades on NASDAQ, currently employs 227 permanent workers and 112 contractors.The company describes itself as a mineral exploration and mine development firm focused on reviving previously producing copper-nickel-cobalt-platinum group element assets.While the company is yet to announce a firm date for production, anticipation is growing. Across Selebi-Phikwe, residents and former mineworkers are watching closely, hoping PNR’s work will soon translate into jobs and economic recovery for a town left in distress since the closure of BCL Mine in 2016.The collapse of BCL Mine in 2016 plunged Selebi-Phikwe into economic hardship, ending decades of copper and nickel production and wiping out thousands of jobs. At the time of closure, the Selebi shafts had been operating for 26 years, having begun in 1990.In 2015, one of BCL’s most valuable assets, the smelter, failed, prompting government to inject USD 100 million in refurbishment costs.Despite this investment, the smelter never restarted. Five years later, in 2020, Nickel X Mining (NEXM) of Canada approached the BCL liquidator with an offer to acquire the Selebi and Selkirk deposits separately from other BCL liabilities.After a rigorous evaluation, NEXM was chosen as the preferred bidder and granted exclusivity to conduct due diligence. The deal was finalised with the purchase of the Selebi North Mine in January 2022 and the Selkirk deposit in August 2022, giving birth to PNR Botswana and its Accelerated Expansion Programme.“This was our biggest stumbling block,” he said. “Now that we have solved it, all we need is to build a processing plant. Once it’s ready, we can produce and sell concentrate directly, just like Khoemacau and Sandfire.”According to PNR General Manager, Tidimalo Tito, once due diligence is complete and investor approval secured, the processing plant could be constructed within two years, marking the full return of large-scale mining to Selebi-Phikwe. Though PNR remains cautious about releasing detailed exploration data before third-party verification, optimism is high that the results will confirm commercially viable reserves.For Selebi-Phikwe, the ongoing activity has rekindled hope of a long-awaited revival. Since the BCL closure, the once-bustling mining town has struggled with joblessness and economic stagnation. If PNR’s exploration delivers the expected results, the mine’s reopening could restore livelihoods, attract investment, and re-establish Selebi-Phikwe as one of Botswana’s key mining hubs.“All indications point to a bright future for Selebi. Once we confirm our reserves and secure our processing plant, we’ll be ready to bring back mining and with it, opportunity,” Tito said.Speaking to Botswana Guardian Tito explained that the company’s current focus is on exploration drilling to determine the quantity and quality of the minerals underground."When we acquired this asset, we had very limited data. We can only know how much copper or nickel lies below after drilling and analysing the core samples,” he said, adding that they are working on holes, studying the samples to determine estimated resources.PNR has also invested heavily in safety upgrades underground. Telephone lines, lighting, water pipes, and electricity have been restored. Many tunnels have been whitewashed, and a Land Cruiser vehicle stationed underground for emergency evacuation. The two main hoisting cages one reaching 300 meters and another 800 meters deep are currently being refurbished.He explained that if ore lies at around 1,600 meters, they will go deeper. “We have already detected massive sulfides at about 2,000 meters, and we are now redeveloping old workings to follow the ore down.”PNR initially planned to fast-track operations when nickel prices were high, but a surge in supply from Indonesia caused global prices to drop. This prompted the company to change course and prioritise exploration to ensure accurate resource estimation before production.Selebi North shaft extends 877 meters deep, while the South shaft reaches 360 meters. Though BCL had mined both areas, it had not verified how much mineral remained. To close this gap, PNRhas conducted electromagnetic (EM) surveys, which detect underground conductivity that signals the presence of ore."The results were promising. We are sitting here in Selebi North with mineral resources estimated between 27 million tons across both shafts. Our surveys show mineralised zones left behind fromBCL’s operations.”PNR also suspected that more ore could exist between the two shafts. After running EM surveys across that area, strong indications of additional mineral plates were detected.Initially, the company drilled from underground, but this proved less effective as drilling parallel to mineral plates gives incomplete data. PNR then shifted to surface drilling, deploying three teams toconduct deep drilling operations. Two holes, each measuring about 2,000 metres deep, have already been completed.Given the complexity of drilling at such depths, the company has hired Canadian specialists, as there are no local drillers with sufficient experience in ultra-deep operations. Each hole takes approximately three months to complete.These samples will form the foundation for the company’s upcoming resource estimates. All exploration is being conducted under NI 43-101, a Canadian standard that governs how mineral exploration results are verified and reported.“Once we drill and analyse the ore, we’ll have independent experts confirm the results,” Tito explained. “Only after certification under NI 43-101 can we present our findings to investors and potential partners.”He confirmed that the ongoing accelerated programme is funded at USD 46 million, to generate reliable data before production begins. Tito said this approach is meant to avoid the mistakes of some mining investors who rush into production without verifying the full extent of their resources.“We want to know exactly what we have, how large our plant should be, and how long the mine can run based on ore grades,” he said.One of the most exciting developments for PNR has been the discovery that Selebi ore can be treated without a smelter, a major obstacle that once clouded the mine’s future.“When we started, we thought it was impossible to treat copper and nickel without a smelter,” Tito said. “But our recent analyses proved that we can separate the two metals using new processing techniques.”The breakthrough means PNR can now produce saleable concentrate on site, significantly reducing capital requirements and simplifying logistics.

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Multi-million-dollar exploration spurs new hope for Phikwe