- Poseidon Nickel (POS) pushes back the proposed restart of its flagship Black Swan nickel project near Kalgoorlie in WA, citing assay delays and the need for extra drilling work for the revised timetable
- The company now expects to complete a bankable feasibility study (BFS) for the project redevelopment in September 2022 and concurrently announce its final investment decision (FID)
- The delayed BFS means Poseidon’s processing plant commissioning target has been adjusted to the June 2023 quarter
- Poseidon Managing Director and CEO Peter Harold says despite the delays, the company continues to make “good progress” at Black Swan
- POS shares down 3.16 per cent to 9.2 cents
Poseidon Nickel (POS) has pushed back the proposed restart of its flagship Black Swan nickel project near Kalgoorlie in WA, citing assay delays and the need for extra drilling work for the revised timetable.
The company said it now expected to complete a bankable feasibility study (BFS) for the project redevelopment in September 2022 and make a final investment decision (FID) as the study was delivered.
Poseidon said in late 2021 it aimed to deliver the BFS in June and hit the FID button before the end of July 2022, with plant commissioning scheduled for the March 2023 quarter.
The delayed BFS means Poseidon’s processing plant commissioning target has been amended to the June 2023 quarter.
Managing Director and CEO Peter Harold said a combination of COVID-induced workforce issues, extra resource drilling required below the open pit at Black Swan and “increased activity in the resources sector” were behind the BFS delay.
However, he said the company had still progressed the project over the past several months.
“The company continues to undertake various pre-production works to support the restart,” Mr Harold said.
“Most recently, we completed rehabilitation works on a 150-metre stretch of the Silver Swan decline so the electromagnetic platform hole below Tundra-Mute could be drilled.”
He added that a $120 million Federal Government grant secured by Pure Battery Technologies (PBT), an important Poseidon industry partner, was a “major step forward” for the project.
PBT was proposing to build a precursor cathode active material refinery hub in Kalgoorlie.
“This refinery could be of great benefit to Poseidon by maximising margins on concentrates supplied to the refinery as well as potentially being able to treat a broader range of nickel concentrate specifications,” Mr Harold said.
POS shares were down 3.16 per cent to 9.2 cents at 11:02 am AEST.