PERTH (miningweekly.com) – Nickel developer Poseidon Nickel is targeting a final investment decision on the restart of its Black Swan operation, in Western Australia, in May next year, with mill commissioning targeted for December.
The company on Thursday told shareholders that outcomes of the recent scoping studies on the estimated capital cost for the refurbishment and operation of two processing plant configurations at Black Swan had determined the most economically attractive production scenario was to refurbish the 1.1-million-tonne-a-year processing circuit and fill that plant to maximise nickel concentrate production.
“The results from the GR Engineering Services scoping study demonstrate that, while both processing plants can be refurbished at a relatively low cost and in a relatively short time frame - within six months - the large resource base at Black Swan, together with the positive outlook for the nickel price and improved payabilities of nickel in concentrates, makes the 1.1-million-tonne-a-year plant, fed by a combination of ore sources, including the underground high-grade, the most attractive project for Poseidon,” said MD and CEO Peter Harold.
The 1.1-million-tonne-a-year circuit would require a capital investment of A$22.1-million, and would have an operating cost of A$29.39/t.
Poseidon is now undertaking a number of work streams at the Black Swan project, including updating the openpit study, delivering a maiden resource at the Golden Swan prospect and converting it to a reserve, undertaking further drilling at the Silver Swan prospect, delivering a maiden resource estimate for the Silver Swan tailings, completing a bankable feasibility study, and completing offtake and financing negotiations.