Poseidon Nickel

Investors & Media

Company Summary

Poseidon has completed the refurbishment of the Mt Windarra mine and the projects Definitive Feasiblity Study. The project is now ready for final financing.

Poseidon Nickel 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 246 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 and has completed 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.  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. 

The Windarra Project will produce a clean, good quality nickel sulphide concentrate which can be sold to smelters either in Australia or overseas. 

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 was completed at the end 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.

In July 2014, the company announced its intention to purchase the Black Swan Nickel Project including a 2.2mt p.a. process plant.  The project is likely to reduce Poseidon's capital needs by $250m, reduce lead times to production by one year and will double the Company's resource base.