Premium Resources (TSXV: PREM) announced an initial resource estimate for its Selkirk project in eastern Botswana, revealing 44.2 million inferred tonnes grading 0.3% copper and 0.24% nickel.
The project, a past-producing mine, also contains significant amounts of palladium and platinum, driving the company’s stock up by 11.5% on Wednesday.
Key Resource Details
The estimate includes:
- 132,000 tonnes of contained copper
- 108,000 tonnes of contained nickel
- 775,000 ounces of palladium (0.55 g/t)
- 174,000 ounces of platinum (0.12 g/t)
The calculation is based on a net smelter return (NSR) cut-off value of $25 per tonne and uses optimistic long-term metal price assumptions of $4.75 per pound for copper, $10.50 per pound for nickel, $1,500 per ounce for palladium, and $1,450 per ounce for platinum.
“This initial resource serves as a solid foundation for advancing the Selkirk deposit to an economic study,” said Keith Morrison, CEO of Premium Resources.
The company is exploring ways to improve the resource’s cut-off grade through engineering and metallurgical studies, which could enhance the deposit’s economic viability.
This announcement comes after Premium’s resource update for the Selebi nickel-copper-cobalt mine, located 75 km south of Selkirk.
Released earlier this year, the Selebi resource showed a 67% increase in tonnage over historic figures, further solidifying Premium’s growth trajectory.
Premium’s stock traded at C$0.52 on Wednesday, valuing the company at C$96.5 million. Over the past year, shares have ranged between C$0.43 and C$1.76.
The Selkirk project has a rich production history, beginning with Anglo American in 1989. From 1989 to 2002, 1 million tonnes grading 2.6% nickel and 1.5% copper were mined.
The asset later passed to BCL Limited, which acquired it from Russia’s Norilsk Nickel in 2014. Premium Resources purchased Selkirk in 2022.
The current resource estimate draws on data from:
- 232 surface and 10 underground drill holes completed between 2003 and 2016
- 5 drill holes sampled in 2021
- 17 historic holes re-sampled in 2024, which revealed higher-than-expected PGE values compared to earlier results
Unlike the Selebi project, Selkirk’s resource does not include cobalt due to its limited presence in the deposit.
With its promising resource estimates and plans for optimization, the Selkirk project positions Premium Resources as a key player in Botswana’s expanding nickel and copper mining sector.
The project complements the company’s portfolio and strengthens its potential to meet the growing global demand for base and precious metals.
