Poseidon Nickel DFS Declares Windarra Gold Project a Goer

THE BOURSE WHISPERER: Poseidon Nickel (ASX: POS) released the outcomes from a Definitive Feasibility Study (DFS) carried out on the company’s Windarra gold tailings project located in the Eastern Goldfields region of Western Australia.

Poseidon Nickel is considering development of the Windarra gold tailings project, which comprises the Windarra Gold Tailings Mineral Resource contained within the North and South tailings dams and the Lancefield Gold Tailings Mineral Resource.

The Mineral Resource comprises 4.75 million tonnes at the Windarra North and South dams at an average grade of 0.73 grams per tonne gold and 1.21 million tonnes at Lancefield at an average grade of 1.27g/t gold, all classified as Indicated resources.

The study determined an Ore Reserve of 5.54 to 5.73 million tonnes, subject to mining method, grading 0.84g/t gold and 2.1g/t silver for approximately 150,000 ounces of contained gold and 375,000 ounces of contained silver.

The study found Windarra Gold Tailings could produce approximately 53500 to 55200 ounces gold, subject to mining method, over a 45-month period, utilising low-cost, low-risk tailings mining methods and a conventional 1.5 million tonnes per annum modular designed processing facility.

“The results from the DFS demonstrate a robust and profitable project retreating the gold tailings at Windarra and Lancefield,” Poseidon Nickel managing director and CEO Peter Harold said in the company’s ASX announcement.

“The gold tailings present a project which can generate positive cash flows to be invested into our nickel business, which is our primary focus.

“The tailings project would be ideal for a partnership style arrangement or an outright sale.

“We will be actively looking for a high-quality partner to work with to bring this project into production or a party to acquire the project so we can monetise the asset for Poseidon shareholders.”

 

 

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