Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) has started reverse circulation (RC) resource delineation drilling from the floor of the dewatered Black Swan open pit.
This drilling follows positive outcomes of the Black Swan Bankable Feasibility Study (BFS) for the 1.1 million tonnes per annum mill feed option.
The RC program is designed to:
- convert more inferred resource to the indicated category to potentially increase the ore reserve; and
- provide additional metallurgical samples to allow more test work on the rougher concentrate study.
“The drill program is another important piece of work for the Black Swan Project restart. The drill data generated should allow us to extend the Life of Mine of the project.
"In addition, it will allow us to optimise the mining and metallurgical parameters and production schedules that will underpin the Final Investment Decision for the conventional smelter grade concentrate project.
“The drilling program targets a large portion of the Black Swan disseminated inferred resource, with drill spacing sufficient to convert this to measured or indicated.
"Extending the life of mine for Black Swan will further strengthen our current efforts to secure attractive offtake and project financing as we progress toward Final Investment Decision during the first half of 2023.”
The RC program will focus on upgrading of the geological confidence for the large amount of inferred mineral resources residing in the proposed pit outline and not included in the mining inventory.
About Black Swan
Poseidon intends to complete an 11,000-metre RC drilling program into the Black Swan disseminated resource.
Activities within the pit are well advanced with drilling now underway and scheduled to finish in early February 2023.
Drilling is underway at the Black Swan open pit.
All assay results are expected by the end of March 2023.
The principal aims of the drill program are:
- To convert more inferred resources to Indicated and increase the measured and indicated resources and in particular for the large amount of inferred resources that are not currently in the mining inventory.
- Enhanced delineation of the metallurgically important serpentinite and talc-carbonate hosted ore types to quantify variations in their respective characteristics such as talc and non-sulphide nickel levels as well as sulphur/nickel ratios, which are important to optimise ore blending strategies.
- Provide more detailed production scheduling for the commencement of operations.
- Provide material for ongoing metallurgical test work programs on the rougher concentrate option.
Drilling program
The RC program will be carried out by Strike Drilling Pty Ltd initially with one rig, with the option to utilise a second rig from early 2023.
This program targets a zone of the BSD resource which the company was unable to target from the underground diamond drilling from the Gosling development drive completed during 2021/2022.
Results of the 11,000-metre RC program will give Poseidon new data for the development of a new ''Life of Project' resource model. This will contain important metallurgical related information such as talc and non-sulphide nickel levels as well as sulphur/nickel ratios. This is in addition to the usual ore type grade data.
This information gleaned will be important for ore blending requirements and will support the process now underway to secure binding offtake and project financing as Poseidon progresses toward project FID during the first half of 2023.
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