Poseidon Nickel (ASX:POS) reports Final Investment Decision (FID) for its Black Swan Project is expected to be made in the first half of 2023.
The company today (12 December) positive outcomes from the Black Swan Bankable Feasibility Study (BFS) for the 1.1Mtpa mill feed option, where reverse circulation (RC) resource delineation drilling from the floor of the dewatered Black Swan open pit has started.
Managing Director and CEO Peter Harold says: “Following the release of our smelter grade concentrate feasibility study and the recent equity raising we are pleased to be starting the RC drilling into the Black Swan Disseminated Resource from the floor of the recently dewatered open pit.
“The drill program is another important piece of work for the Black Swan Project restart”
The drill program is another important piece of work for the Black Swan Project restart. The drill data generated should allow us to extend the life of mine of the project. In addition, it will allow us to optimise the mining and metallurgical parameters and production schedules that will underpin the Final Investment Decision for the conventional smelter grade concentrate project.
The drilling program targets a large portion of the Black Swan Disseminated Inferred Resource, with drill spacing sufficient to convert this to Measured or Indicated. Extending the life of mine for Black Swan will further strengthen our current efforts to secure attractive offtake and project financing as we progress toward Final Investment Decision during the first half of 2023.”
Following the dewatering of the Black Swan open pit, the company has undertaken clean-up activities to facilitate the RC drilling from in-pit positions.
Poseidon intends to complete an 11,000m RC drilling program into the Black Swan disseminated resource. Activities within the pit are now well advanced with drilling now underway.
The drilling program is scheduled to be completed early February 2023 with all assay results expected by the end of March 2023.
The principal aims of the drill program are:
- to convert more Inferred Resources to Indicated and increase the Measured and Indicated Resource and in particular for the large amount of Inferred resources that are not currently in the mining inventory;
- enhanced delineation of the metallurgically important serpentinite and talc-carbonate hosted ore types to quantify variations in their respective characteristics such as talc and non sulphide nickel levels as well as sulphur/nickel ratios, which are important to optimise ore blending strategies;
- provide more detailed production scheduling for commencement of operations; and
- provide material for ongoing metallurgical testwork programs on the rougher concentrate option.
The program will further enhance the restart information as the vompany moves towards commencement of operations in the first half of 2024, subject to Final Investment Decision (FID).
Poseidon Nickel is a nickel sulphide exploration and development company with three projects located within a radius of 300km from Kalgoorlie in the Goldfields region of Western Australia and a resource base of around 400,000 tonnes of nickel and 180,000 ounces of gold.
Write to Adam Orlando at Mining.com.au
Images: Poseidon Ltd
