positively basic , page-2

"The 50,000 tonnes in oxides cannot be included in the JORC statement at the moment and besides, Poseidon is not exactly sure what to do with it.

"That's $1.4 billion worth of nickel," Singleton said. "I can't think of another mine with that kind of resource potential.

''The real challenge is to bolt the oxides and the sulphides together. Do we go to a nickel sulphide concentrate and then stage in a nickel metal product, or just straight to nickel metal?"

That is where the unique skills of new technology manager Michael Rodriguez will be handy.Rodriguez was poached from Minara Resources, largely on the insistence of Forrest, where he had worked for 11 years and refined the company's heap leach project to a point where it is now commercially viable.

His brief at Poseidon is no less demanding: investigate and come up with the right processing option for Mt Windarra ore.

Like the many who followed Forrest through the door at Fortescue, Rodriguez reckons Poseidon gives him the chance to be involved in something big by getting in at the ground floor."

http://www.theaustralian.news.com.au/story/0,25197,23420456-643,00.html


"Harbinger is Fortescue's biggest shareholder after Mr Forrest, who was described by Poseidon as the key element in securing the agreement.

Harbinger "has advised Poseidon that it sees similar growth through this investment", the nickel junior said.

The US fund already holds 8 per cent of Poseidon and would become its biggest shareholder, with about a quarter stake, if the notes are converted.

Poseidon managing director David Singleton said despite the company having only identified 60,000 tonnes of nickel resources, he wants to produce a feasibility study by the end of the year to outline plans for a 20,000 tonne a year operation with a life of more than a decade.

"We're not looking that far off into the future (for first production), if you look at how quickly Fortescue got into production, that's what we're looking at doing," Mr Singleton said ....."

http://www.theaustralian.news.com.au/story/0,25197,23928577-5005200,00.html