Poseidon Nickel Limited (ASX:POS) is fast progressing towards the restart of the Black Swan project in Western Australia.
Highlights
- A resource update is due this month or early June.
- All assays have been received from a 112-hole RC drilling program for 10,845m, completed in February, which extended from below the open pit into the Black Swan Disseminated Resource.
- Final negotiations for offtake and debt financing are underway, with the short-listed groups providing the most attractive terms reduced to two parties.
- The Final Investment Decision (FID) on the Black Swan restart is on track for late June/early July 2023.
- Work continues on the Expansion Project which is based on treating 2.2Mtpa of mill feed.
“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,” Managing Director and CEO, Peter Harold, said.
“We continue to study the Expansion Project with metallurgical testwork progressing and rougher concentrate samples provided to potential customers for testing of downstream processing.
“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.”
First stage drill programme
The drilling contractor mobilized to site mid-April 2023 and has completed Stage 1 of the Western Ultramafic drill programme. A total of 157 Air Core (AC) holes for 5,081m were drilled covering the WUU on a 400m line grid. Selected lines were identified for additional reverse circulation (RC) drilling to gain critical geochemical information beneath with a total of 18 RC holes for 1,106m drilled.
The next round of drilling will be undertaken following the receipt of assay results from Stage 1. The first batches of samples have been sent to the assay laboratory with results anticipated in late June 2023.c
For further information please visit: https://poseidon-nickel.com.au/
