Poseidon Nickel (ASX:POS) Delays Black Swan Feasibility Study, Postpones Project Restart – The Market Herald

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  • Poseidon Nickel (POS) is pushing back the proposed restart of its flagship Black Swan nickel project near Kalgoorlie in WA, citing assay delays and the need for additional drilling work for the revised schedule
  • The company now expects to complete a Bankable Feasibility Study (BFS) for the redevelopment of the project in September 2022 and simultaneously announce its Final Investment Decision (FID)
  • BFS delay means Poseidon processing plant commissioning target adjusted to June 2023 quarter
  • Poseidon Managing Director and CEO Peter Harold Says Despite Delays, Company Continues to Make “Good Progress” at Black Swan
  • POS shares down 3.16% to 9.2 cents

Poseidon Nickel (POS) has pushed back the proposed restart of its flagship Black Swan nickel project near Kalgoorlie in WA, citing assay delays and the need for additional drilling work for the revised schedule.

The company said it now expects to complete a Bankable Feasibility Study (BFS) for the redevelopment of the project in September 2022 and make a Final Investment Decision (FID) as the project is delivered. study.

Poseidon said in late 2021 that it aims to deliver the BFS in June and hit the FID button before the end of July 2022, with plant commissioning scheduled for the March quarter of 2023.

The delayed BFS means that the commissioning target for the Poseidon processing plant has been changed to the June quarter of 2023.

Managing Director and Chief Executive Peter Harold said a combination of COVID-induced labor issues, additional resource drilling needed beneath the Black Swan open pit and “a increased activity in the resource sector” were the cause of the delay of the BFS.

However, he said the company has been pushing the project further in recent months.

“The company continues to undertake various pre-production work to support the reboot,” Mr. Harold said.

“More recently, we completed rehabilitation work on a 150 meter section of the Silver Swan Descent so that the electromagnetic platform hole under Tundra-Mute could be drilled.”

He added that a $120 million federal government grant secured by Pure Battery Technologies (PBT), a major Poseidon industry partner, was a “big step forward” for the project.

PBT proposed to build a precursor cathode active materials refining center in Kalgoorlie.

“This refinery could be of great benefit to Poseidon by maximizing margins on concentrates supplied to the refinery and potentially being able to process a wider range of nickel concentrate specifications,” Mr. Harold said.

POS shares fell 3.16% to 9.2 cents at 11:02 a.m. AEST.

Tana T. Thorsen