26/05/2017 - 10:45

Poseidon to spend $25m on Silver Swan

26/05/2017 - 10:45

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Poseidon Nickel expects to spend up to $25 million to restart operations at its mothballed Silver Swan mine near Kalgoorlie, according to a definitive feasibility study released today.

Poseidon to spend $25m on Silver Swan
Poseidon acquired the Black Swan operation in 2014.

Poseidon Nickel expects to spend up to $25 million to restart operations at its mothballed Silver Swan mine near Kalgoorlie, according to a definitive feasibility study released today.

Perth-based Poseidon has estimated a two-year underground mining operation at Silver Swan for 147,000 tonnes of ore and 8,800 tonnes of contained nickel, at an all-in sustaining cash cost of $US3.10 per pound.

In late 2015, the company announced it was considering a restart of operations at Silver Swan, after plans to sell the asset to Tony Sage’s Caneus Minerals for $2.7 million fell through.

“The DFS demonstrates Silver Swan has a robust production and nickel-grade profile, and the completion of the detailed engineering for Silver Swan will allow Poseidon to take early advantage of an improving nickel market, as soon as this occurs,” Poseidon chairman Chris Indermaur said.

“Poseidon welcomes the positive outcomes of the DFS that reinforce the company’s decision to purchase the Black Swan operations.

“The acquisition of the project was a strategic decision undertaken by the company in 2014 and it remains a core asset located in a highly prospective nickel and gold location.

“Poseidon purchased the Black Swan operations in order to access the 2.2 million tonne per annum process plant, supporting infrastructure and associated high grade underground Silver Swan and Black Swan open pit mines.”

Poseidon will now consider debt and/or equity funding options and continue discussions with offtake partners and potential joint venture parties.

Poseidon shares were unchanged at 2.9 cents each at 10:30am.

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