PERTH (miningweekly.com) – ASX-listed Poseidon Nickel has started the refurbishment of its Silver Swan decline, in Western Australia.
The underground refurbishment of the Silver Swan decline will entail the upgrading of ground support, repair of the southern ventilation surface infrastructure, inspection of the northern ventilation raise, and initial repairs of the mine’s second means of egress.
Poseidon said on Wednesday that the early work would enable safe access from the Silver Swan decline into underground diamond drilling platforms, enabling the exploration drilling of the Black Swan ore deposit.
The diamond drilling programme will start this week to test the mineralisation that extends below the existing Black Swan openpit mine.
Poseidon noted that both the underground refurbishment work and the exploration drilling, along with addressing other long lead time items, would expedite the company’s strategy of fast-tracking the Black Swan operations to nickel concentrate production within 12 months of a decision to restart the operation.
A previously completed July feasibility study confirmed that the restart of the Silver Swan underground mine and the Black Swan openpit mine and processing plant would generate revenues of A$288.6-million, and a pre-tax net present value of A$43.6-million, with internal rates of return of 92%.
The project is expected to cost A$56.7-million to bring back into production, and will deliver some 8 000 t/y of nickel in a smeltable grade concentrate from the Black Swan process plant, and direct shipping ore from Silver Swan.
The integrated project will have a mine life of just over three years, with a number of resource extensions possible.