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COMPANY SUMMARY

Poseidon has 3 “production-ready” nickel assets to refurbish and recommission into production.

Poseidon Nickel Limited is a nickel sulphide exploration and development company, based in Perth, Western Australia.  Poseidon is principally focused on low cost mining restarts of existing brownfield nickel projects with access to existing infrastructure and clear life extension capabilities and greenfield discovery potential.

 

Poseidon has recently acquired the Lake Johnston Nickel Project and the Black Swan Nickel Project ), which, in addition to Windarra, provides Poseidon with 3 “production-ready” nickel assets to refurbish and recommission into production. These 3 assets are in excellent condition, and require only a fraction of the time, cost and risk to bring into operation compared to a greenfield project, and also offer strong initial cash flows.

 

The acquisition of Lake Johnston and Black Swan have increased Poseidon’s mineral resource base to approximately 380Kt of contained nickel. After recommissioning these assets, Poseidon will have available the second largest level of nickel sulphide processing capacity in Australia.

 

Poseidon is presently developing the Windarra Nickel Project which hosts the established Mt Windarra brownfield underground mine. Poseidon intends to recommission Mt Windarra into operations during the first half of 2015. Mt Windarra has a resource base of 4.36Mt ore at an average grade of 1.64% for 71,500 tonnes of contained nickel. Poseidon projects an average production profile of 5,220 tonnes each year on a payable basis post ramp-up, at an average C1 cost of A$4.99 / lb Ni payable. With trial mining and bulk sampling planned to commence from April to June 2015, Windarra is scheduled to be operational and nickel-producing thereafter.

 

To support the recommissioning of Windarra and to facilitate a route to market for Windarra ore, Poseidon has executed an Ore Tolling and Concentrate Purchase Agreement with BHP Billiton Nickel West. This agreement provides for the treatment of ore mined from Mt Windarra at BHP’s long-running Leinster Nickel Operation and the subsequent purchase of all of the concentrate produced.

 

 

Poseidon’s strategy with respect to Lake Johnston is to initiate the development activity over the course of 2015. The recommissioning of Black Swan is expected to take place in approximately 2 years, depending on the performance of nickel prices over the medium term, as well as the appropriate sequencing with Windarra and Lake Johnston.

 

Both Lake Johnston and Black Swan have substantial nickel processing capabilities, hosting 1.5Mtpa and 2.15Mtpa processing plants respectively. These processing plants, in addition to the BHP Ore Tolling and Concentrate Purchase Agreement for Windarra, have significantly reduced the level of capital required to execute Poseidon’s strategy of restarting operations at these 3 assets. As a result, only modest levels of pre-production capital are required.