Name of the Project
Black Swan processing plants refurbishment.

Location
Western Australia.

Project Owner/s
Poseidon Nickel.

Project Description
A scoping study, released in August 2021, determined that the Black Swan 150 000 t/y and 1.1-million-tonne-a-year processing circuits could be refurbished at a relatively low capital cost.

The 150 000 t/y Silver Swan circuit would treat high-grade sulphide ore.

The original two million-tonne-a-year Black Swan plant, used to treat low-grade disseminated openpit ore, would be derated to process 1.1-million tonnes a year, potentially from Windarra.

Poseidon reported in September 2021 that the most economically attractive production scenario is to refurbish the 1.1-million-tonne-a-year processing circuit and fill that plant to maximise nickel concentrate production.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The 1.1-million-tonne-a-year lower-grade circuit could be refurbished for $22.1-million.

Planned Start/End Date
Poseidon Nickel is targeting a final investment decision on the restart of its Black Swan operation in May next year, with mill commissioning targeted for December 2022.

Latest Developments
Poseidon is undertaking several work streams at the Black Swan project, including updating the openpit study, delivering a maiden resource at the Golden Swan prospect and converting it to a reserve, undertaking further drilling at the Silver Swan prospect, delivering a maiden resource estimate for the Silver Swan tailings, completing a bankable feasibility study, and completing offtake and financing negotiations.

The company has reported a Joint Ore Reserves Committee-compliant mineral resource estimate for the Silver Swan tailings of 675 000 t. Grading 0.92% nickel and 683 parts per million cobalt, the tailings are estimated to contain about 6 200 t of nickel and 460 t of cobalt.

The company has told shareholders that the maiden resource supports the company’s concept to co-process the Silver Swan tailings with the Black Swan openpit ore to improve the product marketability.

Detailed testwork is now under way to optimise the Silver Swan tailings blend ratio and test the optimal blend ratio with appropriate proportions of the Silver Swan and Golden Swan massive sulphides. The results are expected to support a bankable feasibility study on the restart of the Black Swan concentrator at a 1.1-million production rate.

Key Contracts, Suppliers and Consultants
GR Engineering Services (capital cost).

Contact Details for Project Information
Poseidon Nickel, tel +61 8 6167 6600 or email admin@poseidon-nickel.com.au.