- Poseidon Nickels’ (POS) new Definitive Feasibility Study (DFS) shows Windarra Gold Tailings Project could produce up to 55,200 ounces of gold
- The DFS assigned the tailings project an ore reserve of up to 5.73 million tonnes, for 150,000 ounces of gold and 375,000 ounces of silver
- The study assumes a contained gold and silver of grading 0.84 grams per tonne (g/t) and 2.1 g/t respectively, and development capital costs of $29.5 million
- It also assigned a net operating cashflow of $30.6 million, a net present value of $21.7 million and internal rate of return of 50.6 per cent
- POS shares are trading at 11 cents each at 10:30 am AEST
Poseidon Nickels’ (POS) newly released Definitive Feasibility Study (DFS) shows the Windarra Gold Tailings Project could produce up to 55,200 ounces of gold.
The DFS assigned the tailings project an ore reserve of up to 5.73 million tonnes, for 150,000 ounces of gold and 375,000 ounces of silver.
That’s subject to mining methods and also assumes a contained gold and silver grading 0.84 grams per tonne (g/t) and 2.1 g/t respectively.
POS said the study highlighted the potential profitability of the project, which involves retreating the gold tailings at Windarra and Lancefield.
It assigned the project a net operating cashflow of $30.6 million and POS CEO Peter Harold said it would inject the funds back into its nickel business.
“The results from the DFS demonstrate a robust and profitable project retreating the gold tailings at Windarra and Lancefield,” Mr Harold said.
“The gold tailings present a project which can generate positive cash flows to be invested into our nickel business, which is our primary focus.
“The tailings project would be ideal for a partnership style arrangement
or an outright sale.”
The development capital costs for the tailings project were up to $29.5 million, with payback expected to be achieved by 28 months.
The study also assigned the asset a net present value of $21.7 million, an internal rate of return of 50.6 per cent and an all in sustaining cost of $1393 per ounce.
POS said now the DFS was complete, it would commence discussions with potential partners.
“We will be actively looking for a high-quality partner to work with to bring this project into production or a party to acquire the project so we can monetise the asset for Poseidon shareholders,” Mr Harold said.
Company shares were trading for 11 cents each at 10:30 am AEST.