Bateman Engineering has continued its expansion into Western Australia, signing a deal with Poseidon Nickel Ltd to undertake pre-feasibility work at the Windarra nickel project.
Bateman Engineering has continued its expansion into Western Australia, signing a deal with Poseidon Nickel Ltd to undertake pre-feasibility work at the Windarra nickel project.
The latest contract follows an agreement with Perth-based Gindalbie Metals Ltd for Bateman, along with ProMet Engineers, to carry out front-end engineering work for the $1.8 billion Karara iron ore project.
The Andrew Forrest-chaired Poseidon said today the study into Windarra will be based in Perth and use expertise from other centres around the world.
Bateman will carry out the bulk of the pre-feasibility work with third parties to contribute to the overall study with inputs including environmental surveys, tailings studies and water access.
Poseidon is planning to produce 20,000 tonnes of nickel each year from Windarra, which contains a resource of 60,370t of nickel.
Bateman is listed on London's Alternative Investment Market and has about 150 staff in WA following the acquisition of Perth-based firm Metplant Engineering Services earlier this year.
Below is the full announcement:
Poseidon Nickel is pleased to announce that it has taken another major step in developing the Windarra Nickel Project by appointing leading engineering group Bateman Engineering to conduct pre-feasibility level engineering work for the Project. This pre-feasibility study is due for completion by the end of this year, at which point it will be reviewed by the Poseidon Board prior to making a decision to commence a bankable feasibility study.
Poseidon selected Bateman following an exhaustive review to identify an engineering company with the necessary level of relevant expertise to undertake the Windarra Prefeasibility Study.
Bateman's scope of work includes conducting a Peer Review on Poseidon's selected ore processing route and undertaking the necessary engineering to develop a revised project capital and operating cost. Poseidon will continue to manage the necessary process and metallurgical test work underway at Lakefield Oretest's facilities in Perth, and will supply the resulting data to Bateman. As announced to the ASX on 28 August 2008 following the
completion of successful batch work at Lakefield, Poseidon has committed to undertake a programme of continuous pilot testing on the ore. Other necessary prefeasibility inputs such as environmental surveys, tailings studies and water access are being conducted by third parties, and will also be incorporated with the Bateman study.
Bateman will also have the benefit of the results of process simulation work completed previously by Poseidon during its scoping study for the Windarra project.
Bateman's contract is for reimbursable man hours against a defined scope of work. The project will be based in Perth using expertise from other centres around the world.
David Singleton MD & CEO of Poseidon said: "The letting of this contract is an important milestone in the development of the Windarra Nickel Project and we are confident that Bateman's expertise and capabilities will ensure the delivery of a comprehensive and robust pre-feasibility study".
Poseidon is planning a major nickel mining operation at Windarra capable of producing in the order of 20,000 tonnes of nickel per annum. The Project currently has JORC-compliant Indicated and Inferred resources of 60,370 tonnes of
contained nickel, and significant potential for further increases as exploration progresses along the previously unexplored 24kms strike length host ultramafics.