Poseidon Nickel Limited (ASX:POS) is pleased to announce that the Lake Johnston Nickel Operation ‘Restart Bankable Feasibility Study’ (BFS) is well progressed and is announcing the interim results. Poseidon Nickel initiated major work toward an early operational restart upon signing the Lake Johnston Asset Sales Agreement (ASA) with Norilsk Nickel Australia (Norilsk) in early September 2014. However, some work was restricted until the final purchase of the operation in November 2014. This update summarises the significant progress towards, and generally past a BFS level of study.
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Poseidon Nickel (ASX:POS) continues to progress a Bankable Feasibility Study for its Lake Johnston Nickel Project with interim results confirming that production restart costs would be low. This follows its defining an initial Resource of 3.8 million tonnes at 1.41% nickel, or 53,100 tonnes of contained nickel, at the Maggie Hays deposit of the project.
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Poseidon Nickel Limited (ASX:POS) (“Poseidon”) completed the acquisition of Lake Johnston on 13th November 2014 and immediately began to work to convert the existing Mineral Resource to the JORC Code, 2012 Edition guidelines as is required by regulation. The Lake Johnston resources include two main mineralised bodies at Maggie Hays and Emily Ann. The Maggie Hays mine has been under care and maintenance since mining was temporarily suspended in April 2013 and Poseidon expects this ore body to be the first back into production when it re-opens the site.
The re-estimation of the Mineral Resource has been completed without undertaking any further drilling using existing data handed over during the sale process. Poseidon’s geologists have already undertaken a review of the Maggie Hays ore body both internally and using external specialists that have concluded additional drilling will continue to extend the project resource in several areas. As an example, in the Maggie Hays North Shoot, an extensive database of additional mine data from sampling carried out in the mining drives will allow a much more detailed understanding of the mineralisation to be developed. This information is currently being processed into a detailed electronic 3D model and will be added to the Mineral Resource model during the first quarter of 2015.
View the Poseidon Nickel Lake Johnston Mineral Resource ASX release here >
Poseidon Nickel (ASX:POS) has defined a JORC 2012 Mineral Resource of 3.8 million tonnes at 1.41% nickel, or 53,100 tonnes of contained nickel, at the Maggie Hays mine within its Lake Johnston project in Western Australia. This was achieved without the cost of undertaking any further drilling using existing data handed over during the sale process. It plans to return Lake Johnston and Mt Windarra projects to nickel production within six months of final financing. The re-estimation of the Maggie Hays mine resource was completed just weeks after completion of the Lake Johnston acquisition from Norilsk Nickel.
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