Monday May 18, 2015: Poseidon Nickel (POS) has declared that it would be feasible to resume mining and production at its Lake Johnston project in WA.
It said the Bankable Feasibility Study found Lake Johnston would produce 8000 tonnes of nickel in concentrate a year at an all-in sustaining cost of US$5.39 a pound.
It would cost $14 million to get the project up and running, with a further $14 million required for working capital.
Lake Johnston would have an initial mine life of 30 months, though ore from Poseidon's Black Swan project could provide four years of feed.
Poseidon said it was now in negotiations for off-take and pre-payments and that it would take just four months to restart production once work got under way.
It said the Bankable Feasibility Study found Lake Johnston would produce 8000 tonnes of nickel in concentrate a year at an all-in sustaining cost of US$5.39 a pound.
It would cost $14 million to get the project up and running, with a further $14 million required for working capital.
Lake Johnston would have an initial mine life of 30 months, though ore from Poseidon's Black Swan project could provide four years of feed.
Poseidon said it was now in negotiations for off-take and pre-payments and that it would take just four months to restart production once work got under way.