Poseidon resumes Windarra refurbishment

Poseidon Nickel has restarted mine refurbishment activities at the Windarra mine site and employed new managers as it prepares for potential production later in the year.

The company said the strong current nickel price and "exceptionally strong" price forecasts had given confidence to support the re-opening of the Mt Windarra mine site.

The steps taken by Poseidon are designed to reduce the lead time to production as it continues negotiations with third parties over ore processing and offtake agreements.

In early May, Poseidon announced it had raised $3.7 million through a capital raising to recommence dewatering at the mine site.

The company is preparing underground operations and completing maintenance work on the water extraction system.

Refurbishment activities were suspended in mid-2013 following the completion of the underground drilling program.

Poseidon has contracted Cathy Cruikshank as general operations manager, formally the deputy underground mine manager at the Perseverance underground nickel mine, to complete the underground refurbishment at Mt Windarra and prepare the mine for operations later in the year.

Poseidon has retained the services of Robert Boston to assist in the completion of the company's current ore offtake contracts and negotiate the major mining contracts to help mine recommencement.

Poseidon’s shares rose on the news, up 11.69 per cent to 8.6 cents at 10:30am WST.