Poseidon Nickel Reports Ore Reserves for Maggie Hays and Mt. Windarra

Poseidon Nickel Ltd. (ASX:POS) announced that it’s completed its initial ore reserve estimate for the Maggie Hays mine. Maggie Hays is located at the company’s recently acquired Lake Johnston project.
The company also released an upgraded ore reserve estimation for its Mt. Windarra project.
Highlights include:

• Initial Maggie Hays Probable Ore Reserve:
  • 1.9 million tonnes @ 1.19% Ni for 22,600 tonnes contained nickel
• Maggie Hays Ore Reserve represents an initial 30 months of plant throughput producing 8,000 tonnes of nickel per annum in a smeltable grade concentrate*
• The Reserve represents 54% of the indicated resources at the project. Further drilling during the production phase will be required to convert existing resources into reserves
• Resource extensions have been identified which Poseidon believes will further extend mine life
• Upgraded Mt Windarra Probable Ore Reserve:
  • 0.567 million tonnes @ 1.70% Ni for 9,630 tonnes contained nickel

David Singleton, managing director and CEO of Poseidon, commented:

Achieving a 2½ year reserve life even before we have carried out any additional drilling is an important milestone for Lake Johnston. Based on the past drilling completed on site and our geological models, we believe that the production life at the Maggie Hays deposit will continue to grow. Whilst the facility remains in care and maintenance, the work programme now completed on the site has given us real belief in this project which we will implement as soon as the nickel market gets to the appropriate point. Market analysis indicates this may be sooner rather than later.

Click here to read the full Poseidon Nickel Ltd. (ASX:POS) press release.