Poseidon Nickel Ltd. (ASX:POS) announced that it has agreed to acquire the Lake Johnston nickel project from Norilsk Nickel (MCX:GMKN). Previously, the company acquired Norilsk’s Black Swan nickel project.
- Lake Johnston includes Mineral Resources estimated to contain 70,500 tonnes of nickel bringing Poseidon’s total nickel inventory to over 400,000 tonnes of nickel
- Lake Johnston includes a full processing capability currently under care and maintenance since April 2013
- Poseidon will evaluate the possibility of bringing Lake Johnston back into production shortly after contract completion
- Poseidon now has near term production potential at 3 independent nickel provinces in Western Australia (Windarra, Black Swan and Lake Johnston)
David Singleton, CEO and managing director of Poseidon, commented:
Poseidon now has 3 nickel projects all within 270 kms of Kalgoorlie. Importantly all 3 projects have the mines and access to infrastructure to enable production to be brought on-line quickly and at low levels of capital investment. All of the projects are in well-endowed mining regions and have demonstrated resource extension potential which could lead to extended production life. We will be growing our output just as nickel supply is moving into deficit following strong Chinese stainless steel production, reportedly up 18.2% year on year, and reduction of nickel supply from Indonesia.