Poseidon is currently investing $8.5m in completing the refurbishment of the Mt Windarra mine which is planned to be completed by the end of 2011
Poseidon Nickel over the last four years has developed the largest nickel sulphide resource of any Australian based exploration and development company. The Windarra Nickel Project includes 2 existing mines, one new discovery and a number of high value exploration targets. The existing mines were closed along with many similar mines in Western Australia in the 1980’s, following a long period of subdued nickel prices. The Windarra Nickel Project is located on 290 square kilometres of contiguous tenements in the heart of Australia’s nickel territories. The Project is currently fully funded to complete its feasibility study and the refurbishment of the Mt Windarra underground mine as well as an extensive drilling programme.
The strategy of the company is to initially reopen the Mt Windarra underground mine and then to extend production through the development of the Cerberus ore body. Poseidon is currently undertaking refurbishment of the underground mine which it expects to be completed by the end of 2011. In addition, Poseidon is completing a 40,000 metre drilling programme at the Cerberus resource located approximately 10kms South of Mt Windarra. Poseidon believes that the extensive tenement package contains highly significant exploration potential demonstrated by the discovery of the Cerberus deposit in 2008. Recent seismic and geochemical analysis has identified a number of high quality anomalies on the site which appear to have similar characteristics to the Cerberus ore body. The company also believes that there is significant evidence of an extension resource to the South Windarra open pit mine.
Poseidon is currently investing $8.5m in completing the refurbishment of the Mt Windarra mine which includes dewatering of the existing mine decline, additional meshing and rock bolting of the decline backs, the installation of power and communications infrastructure and the installation of necessary surface equipment such as mine vent fans and electrical power systems. Refurbishment is planned to be completed by the end of 2011.
Poseidon Nickel is also completing a feasibility into the restart of the project which is due to be complete in the third quarter of 2011. The feasibility study includes the design and construction proposal for a nickel flotation concentrator plant to be built at Mt Windarra with a minimum annual throughput of 350,000 tonnes of ore.
When the feasibility study is complete, the company will submit its application for final works approvals from the Department of Mines & Petroleum and the Department of State Development both located in Western Australia.
The concentrator plant will produce a clean, good quality nickel sulphide concentrate which can be sold to smelters either in Australia or overseas. Poseidon has received a number of proposals for offtake, which it is currently evaluating.
In 2008, after completing the resource drilling of the Mt Windarra mine, Poseidon funded the first significant regional exploration programme carried out on the tenements since the 1980’s and was immediately successful in the discovery of what is now known as the Cerberus ore deposit. The discovery relied on the application of modern underground, electromagnetic exploration tools and the application of nickel geological models of Western Australia developed in recent years. After the initial discovery, Poseidon completed a programme of approximately 20,000 metres of, primarily, diamond drilling to develop the initial indicated and inferred resource. The ore body has been drilled to an initial 1.4km length and to a maximum width of 450 metres. In May 2011, Poseidon started a new drilling programme of up to an additional 20,000 metres intended to expand the resource and provide the necessary information to undertake a mining reserve calculation in late 2011. The actual drilling programme is due to be complete in the third quarter of 2011.
The project is located in an area of the northern goldfields, which is host to a number of mines and mineral projects primarily in nickel and gold. Consequently, the mine is served by excellent infrastructure. The sealed road system runs to the front gate of the mine and connects, through national highways, to the mining town of Kalgoorlie and the export ports of Esperance on the South Coast and Fremantle near Perth. In addition, the site is 80km away by road from the Malcolm railway siding which connects directly to the port of Esperance. The Kalgoorlie mining town provides many of the necessary mining resources and is home to the drilling and mining contractors operating on the site.