nia announcement, page-4

Yeap - Good for everyone. GO THE NIA!!!! Article below is on miningnews.net

Niagara buys ex-Poseidon mine
Rebecca Keenan

Monday, January 24, 2005
ICONIC Australian nickel mine Mount Windarra is believed to have been acquired by junior explorer Niagara Mining in a multi million cash deal from WMC Resources.

Niagara is understood to be aiming to reopen the mine, which still contains a resource of about 3.4Mt at 1.4% nickel, using a 1% cut off. A mine development plan will need to be lodged with the state government, most likely before the end of the year.

Another route to production, and possibly a quicker one, would be to treat a stockpile of oxide material from the South Windarra deposit.

Whilst it was not clear how much it would cost to bring the project back online, MiningNews.net understands that Niagara is considering a joint venture partner, which could help fund the cost of the acquisition.

MiningNews.net also understands the acquisition of the project has been in the wings for some time and was held up by the Poseidon Nickel Agreement Act 1971, a state agreement, which had to be modified to allow a change in ownership.

Strong nickel sulphide drill hits in the 1970s were the catalyst for the so-called Poseidon Boom, which saw shares in the explorer skyrocket to $280. Soon thereafter the company experienced funding difficulties and bought in the then Western Mining Corporation as a 50:50 joint venture partner. Poseidon could not steer its way out of trouble and was soon placed into administration. Shell acquired Poseidon's stake, which it held until the mid 1980s when WMC moved to 100%.

WMC subsequently mined a total of nearly 7.2 million tonnes at 1.6% nickel to produce about 84,600 tonnes of nickel over the life of the mine. It was de-commissioned in 1989 with WMC spending $8.5 million on rehabilitation.

Under the modified Poseidon Nickel Agreement Act 1971 Niagara will have community obligations in lieu of rates and rent to the WA government.