DRILLING at Poseidon Nickel’s Windarra nickel project has discovered high grade mineralisation that could potentially double reserves.
The Mt Windarra site, 260km northeast of Kalgoorlie in WA, currently has a total mineral resource of 3.95 million tonnes at 1.73 per cent for 68,300t of contained nickel.
Bonus for the company is the relatively cheap extraction cost, as the mineralisation zone is close to existing mining infrastructure.
Poseidon managing director David Singleton said the results would provide a stream of bonuses to the already economically robust project.
“Our discovery cost, prior to this campaign, has been circa 10 cents for every pound of nickel in resources and these drilling results should continue that cost trend,” he said.
“I’m particularly pleased with the uncovering of the new, apparently mineable mineralised zone, adjacent to F Shoot.
“It demonstrates that the detailed insights that our geologists have acquired over the last five years of painstaking work is creating breakthroughs in nickel discovery.
“With these additional high grade zones, we will now move to upgrade both the mineral resources and ore reserves at Mt Windarra, and incorporate these upgrades into our finance model.” Poseidon has also been given an extra 12 months for project approval by the State Government with the project expected to commence production in 2014.