Poseidon nickel has signed memorandums of understanding (MOU) with two exploration companies in Western Australia to toll-treat nickel ores. This follows Poseidon’s recent feasibility study which confirmed that the re-start of its own Silver Swan mine and Black Swan mine and concentrator were economic. The MOUs were signed with exploration companies Sulphide X and Estrella Resources, both of which have projects within trucking distance of the Black Swan concentrator plant. Sulphide X owns exploration tenements at Mt Venn which it aims to develop. Estrella owns the historical Carr Boyd project, 38 km away from Black Swan.

Roskill’s view is: “Poseidon Nickel recently published a feasibility study confirming that the re-start of its Black Swan and Silver Swan mines, as well as the Black Swan concentrator, would be economic. Were these MOUs to come to fruition, however, the Black Swan concentrator would be able to operate at a higher capacity utilisation than planned by the feasibility study, as the combined mill feed from the re-started operations would only be half the process plant’s capacity of 2.2 Mt/y. Although the re-start costs of Black Swan and Silver Swan are fully-funded, following a recent equity raise, the tolling agreements would open an additional income stream for Poseidon.”