Poseidon Nickel Provides Update on Black Swan Restart Project and Secures Federal Government Funding for Pure Battery Technologies

Poseidon Nickel (ASX: POS) has shared an update on the progress of its Black Swan 1. 1Mtpa “Fill the Mill” project with a focus on the Bankable Feasibility Study process. The following are the key points of the update as of April 5th, 2022:

Resource Definition Drilling

The Black Swan disseminated drilling program below the open-cut pit has been completed.
A Silver Swan Resource update is due early this month, and Mining Inventory is expected to increase.
The EM platform hole below Tundra-Mute is underway.
Metallurgy Update

Metallurgical test work on various ore sources, nickel recoveries, and potential concentrate specifications are well advanced.

Ore characterisation and blending tests continue to demonstrate that the Fe:MgO ratio in concentrate can be improved.

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Regrind test work on Black Swan disseminated samples confirms a higher nickel grade can be achieved in the final concentrate.

Bankable Feasibility Study (BFS)

GR Engineering is well underway with the engineering component.
Further drilling and metallurgical test work are required to quantify the serpentinite zones below the current open pit floor level. Drilling has been completed.
Additional drilling, work scope changes, and industry-wide pressures have pushed the BFS delivery out a few months to September 2022.
Final investment decision to be concurrent with BFS delivery.
Pure Battery Technologies (PBT) Secures Federal Government Funding

PBT secures ~$120 million grant from the Federal Government for its pCAM refinery hub.

Preliminary test work demonstrates Black Swan concentrates could be suitable feed material for the pCAM refinery.

PBT and Poseidon are negotiating a definitive agreement regarding working together.
Marketing and Project Financing

Strong interest in the Black Swan concentrate offtake from various potential customers, based on preliminary specifications and production estimates.

Indicative offtake terms confirm concentrate saleability and competitive market terms.
In the update, Poseidon's Managing Director and CEO, Peter Harold, expressed his satisfaction with the good progress on the Black Swan BFS. Despite a few setbacks due to COVID, extra drilling below the open pit, and increased activity in the resources sector, Poseidon's undertaking various pre-production works to support the restart. The recent rehabilitation work on a 150-metre stretch of the Silver Swan decline and securing Federal Government funding for PBT's proposed Kalgoorlie pCAM refinery hub are promising developments for the project.

The $120 million grant for PBT's refinery could benefit Poseidon by maximizing margins on concentrates supplied to the refinery and potentially treating a broader range of nickel concentrate specifications, thereby unlocking significant additional value from the Company's large nickel sulphide resource base proximal to Kalgoorlie.

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