Poseidon Nickel has secured an agreement to explore options for processing Northern Star Resources’ gold at its Black Swan operations in the Goldfields region of Western Australia.
The agreement extends Poseidon plans to use its plant and infrastructure at Black Swan to become a major gold producer in the region.
Poseidon will work with Northern Star to evaluate commercial options for processing its gold ore at Black Swan.
“Entering into a memorandum of understanding (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,” Poseidon chairman Chris Indermaur said.
The Black Swan operations involve a 2.2 million tonne per annum (Mtpa) processing facility with a conventional SAG mill, five ball mills, two flotation circuits, multiple thickeners, three ceramic filters and a large concentrate storage shed.
With the addition of a carbon-in-leach (CIL) circuit, the process plant is capable of processing nickel, oxide and refractory gold ores.
The Black Swan operations are likely able to process more than 2Mtpa of gold ore, according to Poseidon.