Hi to whom it may concern.
Hi my name is Kris and I'm a Shareholder of Poseidon Nickel, I've gone over a few of the report, Presentations and the latest Nickel conference, my main concerns are what needs to be done to the processing plant in the sense for upgrading or fixing. There has been consistent talks and a MOU in place with Kidman Resource (KDR) to process ore through our plant, is this something that can start straight away once KDR starts trucking to LJ processing plant or does there need to be funds raised to upgrade or fix. Cheers Kris and thank you for your time.
Dear Kris,
Thank you for your enquiry.
We are pleased to offer the following information to assist in your understanding of what is required to facilitate a restart at Lake Johnston.
The process plant at Lake Johnston was shut down in April 2013 after operating for approximately 2 years. Prior to restarting the plant in 2011 Norilsk Nickel Australia invested circa $25M to refurbish the plant. More recently POS reinvested approximately $5M to recommission parts of the plant required to recover concentrate.
It is our internal view that the existing process plant at Lake Johnston is capable of processing lithium pegmatite ores to recover spodumene. POS is presently completing engineering on the likely throughput and cost at a scoping study level to confirm the capital estimate however we believe it will likely be aligned to the restart cost associated with the process plant previously tabled circa $8M. The refurb can be completed in 6 months.
As all the approvals are in place for a restart the timing will be driven by the ability of third parties to deliver ore.
We trust this helps.
Regards
Michael Rodriguez
Chief Operating Officer
POSEIDON NICKEL LIMITED
Only 6 months according to POS CEO (taken from POS thread)
