The definitive feasibility study (DFS) estimates to have an average annual production of 9,600 tons of contained nickel in concentrate at an average operating cost of $3.35per pound during an initial ten-year period.
The feasibility study included the development of the brownfields mount Windarra underground mine, the neighboring greenfields
Cerberus underground mine, a nickel sulphide concentrator facility as well a retreatment plant.
It also included the development of gold production facility at the site aimed at producing 45,000oz of gold in the first initial three-year period.
The Windarra mine, located in Western Australia, is expected to meet the estimated supply deficits in 2014-2015.
Poseidon Nickel chairman Andrew Forrest said that the DFS establishes company’s strong future as a low cost producer of nickel in the country with a mine life of more than 10 years.
Further, Poseidon managing director David Singleton stated that the company’s objective was to immediately move to finance completion, construction and production.
"We are in the fortunate position of expecting to have two-thirds of the required capital items secured in signed contracts by the time financing is completed," added Singleton.
