Following the positive outcomes of the Black Swan Bankable Feasibility Study (BFS) Poseidon Nickel Ltd (ASX: POS) has commenced reverse circulation (RC) resource delineation drilling from the floor of the dewatered Black Swan open pit in Western Australia.
“Following the release of our smelter grade concentrate feasibility study and the recent equity raising we are pleased to be starting the RC drilling into the Black Swan Disseminated Resource from the floor of the recently dewatered open pit,” Managing Director and CEO, Peter Harold, said.
“The drill programme 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 programme 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.”
Background
Following the dewatering of the Black Swan open pit, the company has undertaken clean-up activities to facilitate the RC drilling from in-pit positions.
The company intends to complete an 11,000 metre RC drilling programme into the Black Swan Disseminated resource. Activities within the pit are now well advanced with drilling now underway. The drilling programme is scheduled to be completed early February 2023 with all assay results expected by the end of March 2023.
The principal aims of the drill programme are:
* to convert more Inferred Resources to Indicated and increase the Measured and Indicated Resource 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 commencement of operations; and
* provide material for ongoing metallurgical testwork programs on the rougher concentrate option.
The programme will further enhance the restart information as the company moves towards commencement of operations in the first half of 2024, subject to Final Investment Decision (FID).
Drilling Programme
Strike Drilling Pty Ltd has been contracted to undertake the RC programme initially with one rig, with the option to utilise a second rig from early 2023.
The drilling programme targets a zone of the BSD Resource which was not able to be targeted from the underground diamond drilling from the Gosling development drive completed during 2021/2022.
The results of the 11,000 metre RC programme will provide new data that will enable the development of a new “Life of Project” Resource model containing, in addition to the usual ore type grade data, important metallurgical related information such as talc and non-sulphide nickel levels as well as sulphur/nickel ratios. This information is important for ore blending requirements and will support the process now underway to secure binding offtake and project financing as the company progress toward project FID during first half 2023.
For further information please visit: https://poseidon-nickel.com.au/
