Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) continues to make progress on key business initiatives, in particular on the future restart of its Black Swan Nickel Project in Western Australia where the company has deferred making a final investment decision (FID).
Poseidon chief executive officer Craig Jones said work programs at Black Swan, including securing a 150-room accommodation in Kalgoorlie, will ensure the company is in a strong position to swiftly proceed to FID to take advantage of nickel price upswings when the time comes.
“In addition, positive results were received from initial confirmatory metallurgical test-work for the Black Swan disseminated ore, indicating the non-sulphide nickel content is consistent with the bankable feasibility study (BFS) assumptions,” he said.
Jones was referring to the metallurgical test-work involving samples from a 10-hole diamond core completed in September.
Test results for 520 non-sulphide nickel (NSNi) assays covering the north to south extents of the Black Swan resource were in line with those tested in the BFS.
Expansion project
The pre-feasibility study for Black Swan’s expansion remains on course for completion in late 2023, with promising results from tests on rougher concentrates returning 95% extraction for high pressure acid leaching (HPAL) and 96% for pressure oxidation (POX).
These rougher concentrate samples were supplied to potential customers to confirm suitability as a feed source for their hydrometallurgical processes.
“Rougher concentrate is not a widely traded product, so confirming the commerciality and beneficial synergies through a third-party HPAL or POX facility is key,” Jones said.
“The test-work aims to help set the platform for third parties to provide indicative nickel payability terms to treat rougher concentrate.”
Black Swan disseminated resource identifying mineralised zones, footwall, main zone and Hangingwall.
Lake Johnson Project
Poseidon has now completed an initial follow-up drill program, comprising 18 aircore holes for 844 metres and seven reverse circulation holes for 835 metres, targeting both Maggie Hays West and several regional targets.
A total of 1,049 samples have been collected and dispatched to SGS’s Perth Laboratory for analysis, with results expected early next month.
“Interpretation of historical drilling data and the most recent drilling supports the theory for channelised ultramafic environments, a key setting for nickel sulphides, are likely to occur along the Western Ultramafic Unit.
“It’s early days on this exciting development however the opportunity is highly rated by our geological team.”
Additionally, the company is evaluating the potential for lithium at Lake Johnston, beginning with database validation and field assessments, supported by a lithium expert.
Windarra
The company is exploring the potential of Draslovka's Glycine Leaching Technology to enhance gold recoveries in its tailings retreatment project.
Draslovka, known for its expertise in cyanide-based chemical specialties, offers an environmentally sustainable and cost-effective method for extracting precious metals and critical minerals.
Should testing demonstrate a substantial increase in gold recoveries, this technology could significantly enhance the project's economic viability, especially as the Australian dollar gold price has surged by 30% from the $2,333 per ounce indicated in the Windarra Gold Tailings definitive feasibility study to around $3,100 presently.
Lastly, a review of exploration targets at Windarra by geological consultants Newexco has identified several promising targets for further exploration, with a focus on cost-effective electromagnetic surveys.
Speaking of costs, the nickel sulphide exploration and development company has increased its annualised cost savings to more than $3 million and will continue to review further reduction opportunities.
Read more on Proactive Investors AU
