PERTH (miningweekly.com) – Nickel hopeful Poseidon Nickel on Wednesday said it was on track to make a final investment decision on the restart of its Black Swan project, in Western Australia, late in the first half of 2023.
Poseidon GM for mining Craig Jones told delegates at the Paydirt Battery Minerals conference that the company was also continuing discussions with potential offtake customers and potential financiers.
Poseidon released a feasibility study into Black Swan last year, which indicated that the 1.1-million-tonne-a-year operation could deliver A$333-million in cash flows. The study estimated that the project would require a capital investment of A$50-million, which included A$38-million to refurbish the existing Black Swan concentrator.
Based on an ore reserve of 3.5-million tonnes, averaging 1% nickel for 35 000 t of contained nickel, the project is expected to produce 200 000 t of concentrate containing around 30 000 t of nickel over its four-year mine life.
The study estimated that the project would have a pre-tax net present value of A$248-million and an internal rate of return of 103%, based on the current nickel price.
Jones told delegates on Wednesday that Poseidon was also studying the expansion of Black Swan to a 2.2-million-tonne-a-year operation, with the treatment of rougher concentrate presenting an opportunity to significantly increase the contained nickel production and enhance the project economics.