Name of the Project
Silver Swan nickel project.

Location
The Silver Swan underground nickel mine site is adjacent to the Black Swan nickel operation, located 53 km north-east of Kalgoorlie-Boulder, which is 600 km east of Perth, in Western Australia.

Client
Poseidon Nickel.

Project Description
The project site is already developed and on care and maintenance. The required infrastructure is also in place and only relatively minor refurbishment is required.

A definitive feasibility has confirmed that restarting the high-grade underground mining operations at Silver Swan and direct shipment of ore to China under an existing offtake agreement with Tsingshan will generate a healthy return on investment at a nickel price above $5.50/lb of nickel.
The project has an initial two-year mine life for 147 000 t of ore and 8 800 t of contained nickel.

The mining area will be accessed through the existing Silver Swan portal and decline.
The existing ventilation rise system will require some bogging of material that has fallen out of rises in some areas. The escapeway system will require some rehabilitation work, including the replacement of some sections of ladderways.

No ore processing is required, as the ore mined will be shipped directly to Tsingshan without further treatment, capturing 100% of the contained nickel.

Jobs to Be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at 10% discount rate, of A$27.8-million and an internal rate of return of 204%.

Value
The total funding requirement for the project is forecast at an estimated A$25-million, which includes all contingencies, preproduction, refurbishment and restart costs, as well as an allowance for working capital.

Duration
Not stated.

Latest Developments
The company is exploring options to fund the initial preproduction activities, which include refurbishment of the mine and infrastructure in preparation of a restart at the right time.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Poseidon Nickel, tel +61 86167 6600, 
fax +61 86167 6649 or email admin@poseidon-nickel.com.au.