Black Swan Restart Project Update

Poseidon Nickel (ASX: POS) (“Poseidon”, “the Company”)is pleased to provide its first update on the Black Swan 1.1Mtpa “Fill the Mill” project and the Bankable Feasibility Study process.

KEY POINTS

Fill the Mill Strategy

• Restart based on feeding the 1.1Mtpa processing circuit with a combination of feed sources to maximise nickel units produced

Growing Mining Inventory to support filling the mill for longer

• New high-grade Golden Swan discovery adds 6,300t contained Ni to Black Swan Resources
• Silver Swan drilling underway, aiming to increase high-grade mining inventory
• Black Swan Disseminated resource drilling underway, aim is to increase quantity of serpentinite ore

Metallurgical test work underway

• Previous test work confirms Silver Swan tailings improves Fe:MgO ratio of concentrate
• Current program designed to determine most suitable blend of feed sources, averagemetallurgical recovery and typical concentrate specifications for marketing purposes

Considerable progress made on Black Swan Restart since the 2018 Black Swan Study

• Work is focused on de-risking the 2018 Black Swan Study by:
  • increasing high-grade and low-grade mining inventory to support a longer life project
  • developing Golden Swan access drive for the resource drilling program
  • improved concentrate marketability
  • significant pre-production works already completed including underground escapeway refurbishment/replacement, underground infrastructure refurbishment and concentrator safety upgrade
  • process water secured under five-year water access agreement
  • negotiating accessing grid power which, if secured, will reduce the July 2021 Scoping Study overall plant operating cost estimate by >10%

Marketing and Project Funding

• The Company continues to engage with parties who have expressed interest in offtake and funding arrangements

Read the full ASX release here.

“This article includes content from Poseidon Nickel, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.”