Poseidon Nickel provided a corporate and operating update, in particular the positive outcomes from recent metallurgical testwork for the Black Swan Bankable Feasibility Study. Positive results from recent metallurgical testwork employing locked-cycle flotation tests indicate that the addition of a regrind circuit, utilising the existing 150ktpa Silver Swan ball mill, would significantly improve the nickel grade and reduce the MgO content to levels more attractive to potential offtakers. Immediately prior to the shutdown of Black Swan in 2009, a period during which operations were processing only disseminated ore, the project produced concentrate with an MgO content of around 15% which is not preferred for most conventional nickel smelters. The project team have been looking for ways to lower the MgO levels of the Black Swan concentrate and the recent locked-cycle testwork indicates that MgO levels can be reduced to around 5%, which is a major breakthrough for the project. In addition, following the recently completed Quantitative Xray Diffraction analysis program the project team has completed the initial assessment of the talc distribution throughout the Black Swan Disseminated Resource. This assessment has confirmed that the level of talc within the serpentinite ore will not impede the project producing an acceptable MgO level in the smelter grade concentrate. In addition, this work has allowed to focus on blending the talc carbonate and serpentinite ore types to produce a lower grade rougher concentrate which would be suitable feed for POX and HPAL plants and could significantly extend the mine life at Black Swan. Following the recent metallurgical breakthrough, further optimisation testwork is required to finalise study assumptions and confirm concentrate specifications to achieve the best offtake terms. As a result, completion of the 1.1Mtpa smelter grade concentrate Bankable Feasibility Study will be during the December quarter. The 2.2Mtpa rougher concentrate study continues to progress with further infill resource drilling required to convert more Inferred Resources to the Indicated category. This drilling will be undertaken from the open pit floor and is expected to commence during November 2022, following the completion of pit dewatering. Progress to date of both the 1.1Mtpa and 2.2Mtpa feasibility studies has highlighted the significant benefits these studies have identified for the project. The marketability of potential concentrates, smelter and rougher, are critical to the outcomes of the respective studies. The company has identified several potential customers, including Pure Battery Technologies, for the rougher concentrate which has the potential to significantly increase mine inventory and mine life. Also, securing water rights from the Norton Goldfields pits and grid power from Western Power will provide significant operating cost and environmental benefits. In addition, the Company has continued
to progress various pre-production works for the restart of Black Swan.