Silver Swan nickel posts an impressive DFS

Poseidon Nickel Ltd advises of the key outcomes of the DFS for the Silver Swan high-grade underground nickel mine. Highlights:

Strong Economic Fundamentals

  • High grade underground nickel mine
  • All-in-sustaining cash costs including capital of $3.10/lb
  • Breakeven nickel price of $4.63/lb on an undiscounted basis
  • First ore from financing in less than nine months.

Low Capital Intensity

  • Existing underground mine and infrastructure
  • Pre-production and working capital of A$25 million

Physical Parameters

  • Underground mine diluted Ore Reserve of 3,300 t of contained nickel, grading 5.8% Ni, 0.1% Co and 0.3% Cu to surface
  • Initial two-year mine life for 147,000 t of ore and 8,800 t of contained nickel

There is significant upside. Silver Swan Deeps, Black Swan Open Pit plus stockpiled ore, combined with Windarra and Cerberus add potential project mine life for a minimum of seven years.

Company Chairman Chris Indermaur stated, “The DFS demonstrates Silver Swan has a robust production and nickel grade profile and the completion of the detailed engineering for Silver Swan will allow Poseidon to take early advantage of an improving nickel market, as soon as this occurs.

“Poseidon welcomes the positive outcomes of the DFS that reinforce the company’s decision to purchase the Black Swan Operations (the project). The acquisition of the project was a strategic decision undertaken by the company in 2014 and it remains a core asset located in a highly prospective nickel and gold location. Poseidon purchased the Black Swan Operations in order to access the 2.2 Mt/y process plant, supporting infrastructure and associated high grade underground Silver Swan and Black Swan open pit mines.”

The Silver Swan underground nickel mine site is adjacent to the Black Swan nickel operation lying 53 km northeast of the city of Kalgoorlie-Boulder, which is 600 km east of Perth, Western Australia.