Poseidon Nickel (ASX: POS, 'the Company') is pleased to advise that due to the outcomes of the Scoping Study on the estimated capital cost for the refurbishment and operation of two processing plant configurations at Black Swan recently completed by GR Engineering Services Limited ('GRES'), the large resource base at Black Swan, improved payabilities of nickel in concentrates globally and the positive outlook for the nickel price the Company has determined the most economically attractive production scenario is to refurbish the 1.1Mtpa processing circuit and fill that plant to maximise nickel concentrate production.
Managing Director and CEO, Peter Harold, commented: 'The results from the GRES Scoping Study demonstrating that while both processing plants can be refurbished at a relatively low cost and in a relatively short time frame (i.e. six months) the large resource base at Black Swan together with the positive outlook for the nickel price and improved payabilities of nickel in concentrates makes the 1.1Mtpa plant, fed by a combination of ore sources, including the underground high-grade, the most attractive project for Poseidon
Background GRES provided Poseidon with capital and operating cost estimates for the refurbishment and operation of the separate 150ktpa and 1.1Mtpa ore treatment circuits at Black Swan to a +/- 20% level of accuracy, collectively referred to as the Scoping Study.
NEW FILL THE MILL STRATEGY
As mentioned in the Scoping Study ASX release (27 July 2021) the Company was considering a small high grade underground mining operation with ore sourced from Golden Swan and Silver Swan and processing this ore through the refurbished 150ktpa Silver Swan processing circuit. The Company was also considering the merits of refurbishing the 1.1Mtpa Black Swan circuit and processing a number of ore sources (low and high grade) to fill that circuit.
Tel: + 61 (0)8 6167 6600
FORWARD LOOKING STATEMENTS
This release contains certain forward looking statements including nickel production targets. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as 'may', 'will', 'except', 'intend', 'plan', 'estimate', 'anticipate', 'continue', and 'guidance', or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production and expected costs. Indications of, and guidance on future earnings, cash flows, costs, financial position and performance are also forward looking statements. Forward looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change, without notice, as are statements about market and industry trends, which are based on interpretation of current market conditions. Forward looking statements are provided as a general guide only and should not be relied on as a guarantee of future performance. Forward looking statements may be affected by a range of variables that could cause actual results or trends to differ materially. These variations, if materially adverse, may affect the timing or the feasibility and potential development of the Golden Swan underground mine.
About Poseidon Nickel Limited
Poseidon Nickel Limited (ASX Code: POS) is a nickel sulphide exploration and development company with three projects located within a 300km radius of Kalgoorlie in the Goldfields region of Western Australia and a resource base of around 400,000 tonnes of nickel and 180,000 ounces of gold. Poseidon's strategy is focused on the restart of its established nickel operations in WesternAustralia where project risk capital and operating costs are low. A critical element of this strategy has been to acquire projects and operations with high levels of geological prospectivity likely to lead to potential substantial extension of the operation's life through the application of modern exploration techniques. Poseidon owns the Windarra, Black Swan and the Lake Johnston Nickel Projects. In addition to the mines and infrastructure including concentrators at Black Swan and Lake Johnston, these projects have significant exploration opportunities demonstrated by the discovery of the Abi Rose deposit at Lake Johnston and the recent discovery of the Golden Swan mineralisation at Black Swan. The Company has recently completed a Definitive Feasibility Study on retreating the gold tailings at Windarra given the strength of the A$ gold price which showed positive economics.