Poseidon submits mining proposal

THE BOURSE WHISPERER: Poseidon Nickel has submitted a detailed Mining Proposal for the Mount Windarra Mine to the Department of State Development of the Western Australian Government.

The proposal is seeking approval to both restart mining operations at Mount Windarra and to build a processing plant on the site.

The proposal includes mining up to 500,000 tonnes of ore per annum from Mount Windarra with an initial mine life of six years.

The Windarra project has a resource base of 6.6 million tonnes of ore at an average nickel grade of 1.67 per cent, of which approximately 58 per cent is included in the Mount Windarra resource with the remaining ore located at Cerberus and South Windarra.


Source: Company announcement

Poseidon’s plans for the site entail the construction of a 700,000 tonne capacity nickel sulphide concentrator to process ore from Mount Windarra and from the Cerberus mine.

The company has indicated a construction time for the plant and associated infrastructure of approximately 12 months.

It has also indicated the new plant will be built largely inside the footprint of the historical plant.

“The size of the plant selected provides good economies of scale and processing costs are likely to be in line with other nickel peer producers in Western Australia,” Poseidon Nickel said in its announcement to the ASX.
The company’s Mining Proposal application includes construction of the following infrastructure:

–    Existing underground mine, ventilation shafts, access portal and underground crusher chamber;

–    Refurbishment of existing vertical haulage shaft to reduce decline haulage costs;

–    Flotation concentrator plant including power plant and water; and

–    Accommodation camp, use of exiting administration buildings, workshops and lay down areas.

“Following a detailed evaluation of the mine, in conjunction with the projects geotechnical and mining consultants, Poseidon has chosen a sub-level cave mining method as the safest and most cost effective method to recover the ore,” the company said.

“This mining method is possible due to the sub-vertical nature of the ore body and should provide one of the lowest nickel sulphide mining costs in Western Australia.”

Poseidon said it also intends submitting other mining, environmental and works approval applications.

These will include a separate Mining Proposal for the Cerberus deposit and are likely to be submitted by the end of this year.