Poseidon eyes Lake Johnston restart

Company News


Poseidon Nickel Limited (ASX:POS) says a Banking Feasibility Study has confirmed that a restart of the Lake Johnston nickel project is economic at the current nickel price. 
 
The mine was operational until 2 years ago. The start-up would cost around $14 million with an initial mine life of around 30 months. All the required operating licences for the re-start are in position. 
 
Poseidon purchased the Lake Johnston project from Norilsk Nickel last year. The deal included a processing plant. Ore currently stockpiled at Black Swan can be trucked to Lake Johnston for processing for the next 4 years. 
 
Tenders for underground mining contracts have been issued and negotiations for product are underway. 
 
Poseidon Nickel reported a net loss of $12.5 million for the first half of the 2015 financial year.