JOHANNESBURG (miningweekly.com) – Diversified miner Kidman Resources has taken a key step towards accelerating the development of its Mt Holland project in Western Australia, announcing on Wednesday that it may use Poseidon Nickel’s Lake Johnston plant to process lithium ore into concentrate.
The 1.5-million-tonne-a-year Lake Johnson plant is about 120 km by road from Mt Holland and is currently on care and maintenance.
Kidman and Poseidon signed a memorandum of understanding (MoU) to provide a framework to evaluate a proposed transaction. The MoU provides for Kidman to explore opportunities to either toll treat Mt Holland lithium or for a conventional offtake deal.
The MoU follows the recent high-grade drilling results at Mt Holland’s Early Grey pegmatite. Follow-up drilling is planned with the aim of undertaking a maiden estimation of the deposit. Kidman has submitted a programme of works to the Western Australian Department of Mines for the planned drilling programme.