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Poseidon Nickel advances towards Black Swan restart with expansion on the cards

Published 26/05/2023, 11:33 am
Updated 26/05/2023, 12:00 pm
© Reuters.  Poseidon Nickel advances towards Black Swan restart with expansion on the cards

© Reuters. Poseidon Nickel advances towards Black Swan restart with expansion on the cards

Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) has made significant strides towards the restart of its Black Swan smelter-grade concentrate project, situated 50 kilometres northeast of Kalgoorlie in Western Australia.

The restart is based on the November 2022 bankable feasibility study for the 1.1 million tonnes per annum mill feed option to produce smelter-grade concentrate.

In terms of offtake and debt financing, Poseidon has the shortlist reduced to two parties, with final negotiations underway.

Looking ahead, various work streams continue to be progressed as the company heads towards the restart with the final investment decision (FID) on track to be made in late June or early July this year.

Find most attractive customers

Poseidon managing director and CEO Peter Harold said: “The offtake and project financing work streams continue with the shortlist reduced to two parties with whom we are now negotiating separate offtake and project financing agreements.

“We are aiming to execute documents with the successful party in late June/early July 2023.

“We continue to study the expansion project with metallurgical testwork progressing and rougher concentrate samples provided to potential customers for testing of downstream processing.”

Expansion project

Work continues on the expansion project which is based on treating 2.2 million tonnes per annum of mill feed and producing a rougher concentrate.

The rougher concentrate product has a lower nickel grade and higher magnesium oxide content than conventional smelter feed and is more attractive as a feed for either pressure oxidation (POX) or high-pressure acid leach (HPAL) plants rather than a conventional nickel smelter.

Harold adds: “The attraction of the expansion project is that annual production of nickel in concentrate could increase and the mine life could be extended due to the ability to treat talc carbonate material which is not included in the current ore reserves.

“The key to unlocking the value of the talc carbonate material is finding the most attractive customer for the proposed product which is a major focus of the expansion study.”

Lake Johnston

Poseidon is planning a drill program of up to 15,000 metres to test the basal contact position of the Western Ultramafic Unit (WUU) at Lake Johnston.

The drilling contractor has been mobilised to the site in mid-April 2023 and has completed stage one of the drill program.

A total of 157 air core (AC) holes for 5,081 metres were drilled covering the WUU on a 400-metre line grid.

The WUU has weathered to silica cap in various locations creating a hard layer that can be difficult to penetrate with aircore drilling.

Read more on Proactive Investors AU

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