Name of the Project
Black Swan nickel operations restart project.

Location
Kalgoorlie, in Western Australia.

Project Owner/s
Poseidon Nickel.

Project Description
The mine has 16 200 nickel tonnes derived from measured and indicated material and other modifying factors, such as dilution, which represents 70% of the mine plan, or 82% sulphide ore tonnes.

The mine plan also includes additional inferred material, which excludes probable reserves. This amounts to 30% of the nickel tonnes of the mine plan, or 18% of the processed sulphide ore tonnes.

A feasibility study has confirmed that the Black Swan operations – the Black Swan openpit mine, the Silver Swan high-grade underground mine, the Black Swan sulphide concentrator and supporting infrastructure – can be brought back into operation at a low level of capital investment without any regulatory or technical barriers.

The study envisages production of about 8 000 t/y of nickel in a smeltable grade concentrate from the Black Swan process plant and direct shipping ore from the Silver Swan underground mine. Ore previously mined and currently stockpiled at Black Swan will be processed at Black Swan. Combined mill feed will average 1.1-million tonnes a year, compared with process plant capacity of 2.2-million tonnes a year, which will be able to process third-party feed on a toll treatment basis or buy at the gate under contract terms.

Several mines within the Kalgoorlie region will come out of contract and the opportunity exists to competitively bid for the ore. The project has a mine life of 3.1 years, with several promising extensions to be considered.

Potential Job Creation
An estimated 180 jobs will be created on site.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 10% discount rate, of $43.6-million and an internal rate of return of 92%.

Capital Expenditure
Total project capital requirements are estimated at $56.66-million, including plant and mines refurbishment and development.

Planned Start /End Date
The feasibility study has confirmed that the operations can be brought back into operation, with first production within 12 months of fully funding the project.

Latest Developments
Poseidon Nickel has started the refurbishment of its Silver Swan decline.

The underground refurbishment 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 has said that the early work will 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 test the mineralisation that extends below the existing Black Swan openpit mine.

Poseidon has indicated that the underground refurbishment work and the exploration drilling, along with addressing other long-lead time items, will 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.

The August 2018  feasibility study confirmed that the restart of the Silver Swan underground

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Poseidon Nickel, tel +618 6167 6600, fax +618 6167 6649 or email admin@poseidon-nickel.com.au.