Poseidon to restart Mt Windarra

Poseiden Nickel says it will restart its Mt Windarra nickel mine after it entered an $8 million agreement with GSM Mining to complete the refurbishment of the underground project.

In 2008, GSM refurbished the initial 1,000 metres of the decline and will complete the remaining 3,500 metres under the new deal.

Refurbishment includes the removal of water from the mine, rock bolting and meshing of the decline and the installation of various infrastructures necessary to commence mining operations.

The work will take approximately 10 months to complete and cost approximately $8m, Poseiden said.

"The completion of the refurbishment will allow Poseidon to undertake further drilling
activity from underground and to complete preparations for the start of mining operations," Poseiden said in a statement to the ASX.