Name of the Project
Black Swan nickel operations restart project.

Location
Kalgoorlie, Western Australia.

Project Owner/s
Poseidon Nickel.

Project Description
A bankable feasibility study (BFS) has proven positive.

The BFS is based on mining ore from the Black Swan disseminated openpit (serpentinite ore only), and Silver Swan and Golden Swan high-grade underground mines, supplemented with Silver Swan tailings and existing surface stockpiles (disseminated serpentinite material), and processing these feed sources through the existing concentrator and associated infrastructure.

Black Swan can produce a high-grade nickel concentrate with an estimated 15% nickel, 6% magnesium oxide and an iron:magnesium oxide ratio of 5:1, which is highly desirable for conventional nickel smelters.

The BFS envisages the refurbishment and operation of the existing plant with a processing capacity of 1.1-million tonnes a year to align with the available processing mine inventory of five-million tonnes, presenting an after-development project life of four years. Over the life of the project, Phase 1 will produce 200 000 t of smelter-grade concentrate, averaging 15% nickel containing an estimated 30 000 t of nickel from the various feed sources, representing an average metal recovery of 68%.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $248-million and an internal rate of return of 103% at the current Australian dollar nickel price.

Capital Expenditure
Existing infrastructure means a low pre-production capital expenditure of about $50-million, compared with that of a greenfield operation, which includes $38-million for refurbishment of the Black Swan concentrator.

Planned Start /End Date
If a final investment decision is made during first half 2023, concentrate production could start in early 2024.

Latest Developments
Poseidon Nickel has said it was on track to make a final investment decision on the restart of its Black Swan project late in the first half of 2023.

The company is also continuing discussions with potential offtake customers and potential financiers.

The feasibility study on the 2.2-million-tonne-a-year ore feed option to produce rougher concentrate is well advanced and due for completion during first half 2023.

Further, assuming a final investment decision is made during first half 2023, concentrate production could start in early 2024, taking advantage of the strong nickel price environment.

Poseidon GM for mining Craig Jones has said that Poseidon is also studying the expansion of Black Swan to a 2.2-million-tonne-a-year operation, with the treatment of rougher concentrate presenting an opportunity to significantly increase the contained nickel production and enhance the project economics. 

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Poseidon Nickel, tel +618 6167 6600, fax +618 6167 6649 or email admin@poseidon-nickel.com.au.