Poseidon Nickel Ltd (ASX:POS) is progressing the restart of its Black Swan project as it moves towards a final investment decision on the restart, on track to be made in the second quarter of 2023.
The company has completed an 11,000-metre reverse circulation drilling program from the bottom of the open pit, with 20 per cent of assays returned to date.
The aim of the drilling is to increase the mining inventory to further extend mine life and optimise the start-up feed schedule.
Firm offers were received by Poseidon for offtake and/or project financing during January 2023, with shortlisted parties in the data room and undertaking site visits as required.
Work is continuing on Poseidon’s Expansion Project, which is based on increasing the mill feed rate from 1.1 million tonnes per annum to 2.2 million tonnes per annum and producing a rougher concentrate which will have a lower nickel grade and higher magnesium oxide content.
Metallurgical studies are well underway to determine the optimum rougher concentrate nickel grade, the metallurgical recovery and the typical concentrate specifications to enable potential offtakers to provide indicative terms.
These terms will be a key component in determining the economics of the Expansion Project.
Managing Director and CEO, Peter Harold said: “Our primary focus remains on offtake and project financing work streams, with strong interest having been received.
“The most attractive structure is currently combining offtake and project financing.
“A shortlist of parties have been given access to the data room and are undertaking site visits, as required.
“We are planning to finalise the preferred partner/s early in the second quarter of 2023 and we remain on track to announce the Final Investment Decision for the restart during the second quarter.
We are also progressing the Expansion Project study with metallurgical testwork well underway to determine the optimum nickel recovery and grade of nickel in the rougher concentrate.
“The key attraction of the Expansion Project is that annual production of nickel in concentrate could increase significantly, and the mine life could be extended due to the ability to treat talc carbonate ores which are not included in the current Ore Reserves.
“The key to unlocking the value of the talc carbonate material is to find a non-conventional smeltercustomer/s i.e., POX, HPAL or pCAM producer for the proposed product which is a main focus of the Expansion Study.”
