Panoramic Resources will now supply BHP Billiton's Nickel West an increased maximum of 470,000 tonnes of ore from the Lanfranchi Nickel Project for the 2012 financial year after BHP Billiton Nickel West accepted the increase under an agreement with the Lanfranchi JV parties.

The Ore Tolling and Concentrate Purchase Agreement initially provided for a maximum limit of 350,000 tonnes per annum. The agreement is between BHP Billiton Nickel West and Panoramic Resources' wholly owned subsidiaries Cherish Metals and Donegal Lanfranchi.

Panoramic is confident the Lanfranchi Project can supply significant quantities of ore to the Kambalda concentrator in the long term. The off take from Lanfranchi is contracted to BHP Billiton Nickel West until 2019. The company recently commissioned the new AUD 7.5 million Lanfranchi Village.

The Lanfranchi Project has a contained nickel resource of 158,700 tonnes and a contained nickel reserve of 55,600 tonnes for a six year mine life. However, Panoramic is targeting a 10 year mine life through more focused exploration.

Following the discovery of high grade nickel mineralization down plunge of Helmut South, work has begun to optimize production from all three producing deposits Helmut Deacon, Schmitz and Lanfranchi.

Panoramic has begun feasibility work on the Cruickshank ore body and is planning further drilling down plunge. The company will also focus on the lower grade ore bodies such as Gigantus and McComish.

Production to September totaled in excess of 140,000 tonnes of nickel so far.

(Sourced from www.proactiveinvestors.com.au)