Poseidon Nickel signs MOUs with SuphideX, Estrella Resources

Poseidon Nickel has entered into memorandums of understanding (MOU) with SulphideX and Estrella Resources at the Mt Venn and Black Swan Operations.

SulphideX will process ore from its Mt Venn project, while Estrella will treat ore from its Carr Boyd rock nickel project using Poseidon’s facilities within the Black Swan project.

Private company SulphideX owns two exploration tenements at Mt Venn (EL 38/3111 and EL 38/3150), which is near Black Swan and undergoing development.

Poseidon plans to restart the Black Swan project, which was placed on care and maintenance in early 2009 due to low nickel prices. Poseidon published a feasibility study in July 2018 laying out its economic plans for the restart.

The operation comprises sister mines Black Swan and Silver Swan, as well as the 2.2Mt/y Black Swan concentrator, which will be utilised by Estrella for processing of ore from Carr Boyd as part of the terms of its MOU.

Poseidon plans to work with both companies to evaluate toll treating ore mined from Mt Venn and Carr Boyd under an Ore Tolling and Concentrate Purchasing Agreement (OTCPA).

It will toll treat the nickel ore to produce concentrate for purchase at an agreed price from SulphideX and Estrella. Poseidon will also manage sales and marketing of the concentrate.

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