Poseidon Nickel has completed a feasibility study confirming a restart to operations at the Silver Swan underground and Black Swan open-pit nickel mines.
The company’s wholly-owned operations are expected to generate $288.6 million in revenues. The restart was estimated to produce approximately 8000t of nickel every year.
The process plant was built and upgraded in 2007, but was put on care and maintenance in February 2009 due to falling nickel prices during the financial crisis.
Poseidon expressed confidence that nickel prices will progressively improve over the next 12 months. And with a low capital requirement of $56.7 million, Poseidon expects operations at the Black Swan to be economic.
The project feasibility study confirmed that within 12 months of fully funding the project, first production can be reached. This is because all assets held and operating licences required were reported to be in good standing.
Meanwhile, Sydney-based stock broker Petra Capital is exploring traditional funding options with several parties on behalf of Poseidon.
Though the company has not secured any binding agreements for funding, a number of negotiations for the sale of its product and off-take agreements are under way.
The Black Swan and Silver Swan’s initial project life and ore throughput rates were also reported to have increased substantially. The combined project is anticipated to have a life of 3.1 years, with the plant processing projected at 1.1 million tonnes of per annum (Mtpa).
Black Swan has a plant processing capacity of 2.2Mtpa. The operations will create 180 new jobs at the site. And Poseidon will focus its recruitment efforts on Kalgoorlie-based residents to fill both leadership and maintenance roles.