PERTH (miningweekly.com) – Nickel miner Poseidon Nickel has entered into a memorandum of understanding (MoU) with fellow-listed gold miner Northern Star Resources to explore gold processing at the Black Swan operations, in Western Australia.
Under the terms of the MoU, the two companies will evaluate commercial options to process Northern Star ore at the Black Swan processing facility.
Poseidon has previously revealed plans to use the existing plant and infrastructure at Black Swan to become a major gold producer in the Goldfields region, and has previously inked MoUs with Aphrodite Gold to evaluate processing that company’s gold mineral resource at the Black Swan facility.
“Entering into an MoU to process gold ores from Northern Star advances the company’s stated strategy of establishing Black Swan operations, with all of its existing plant and infrastructure, as a free milling and refractory gold central processing facility, and represents a positive step towards establishing the Black Swan operations as a low capital cost entry into the gold market,” said Poseidon chairperson Chris Indemaur.
Poseidon is hoping to process over two-million tonnes of gold ore a year at the 2.2-million-tonne-a-year Black Swan processing facility. The company said on Monday to ensure the existing plant capacity is fully used, negotiations were progressing with local gold explorers and miners to secure the supply of gold ore that will increase plant throughput and further reduce operating costs.
Poseidon intends to progress a detailed feasibility study to begin the integrated design at Black Swan. The study will underpin the future funding of the project.
Regulatory approvals will also be progressed in parallel, to ensure early engagement with key stakeholders.