Black Swan to save Poseidon
UPDATE 3pm: Shares in Poseidon Nickel were up firmly after the aspiring miner revealed it would save $240 million in start-up costs by processing ore from its flagship Mt Windarra mine at an existing processor at its recently-acquired Black Swan project.
Poseidon announced the acquisition of the mothballed Black Swan operation from Norilsk Nickel in July.
An engineering study has since concluded that trucking ore from Mt Windarra to the Black Swan concentrator, rather than building a new concentrator onsite, would save Poseidon about $240 million in start-up costs.
Incorporating Black Swan into Poseidon's plans was also expected to reduce cash operating costs from $US4.05 a pound to $US3.35 a pound.
"Both the Mt Windarra mine and the Black Swan operation can be brought into production in less than six months from final financing," the company noted.
Managing director David Singleton said as well as reducing the capital costs of Mt Windarra, Black Swan had also doubled the ore resources of the company and shaved a year off development time.
"The company is also in advanced discussions with parties regarding debt financing for the project and securing an off-take contract for the Black Swan concentrate," Poseidon said.
Poseidon shares closed up two cents, or 12.5 per cent, at 18 cents.
