Poseidon Undertakes Feasibility Study on Lake Johnston Restart

Poseidon Nickel Ltd. (ASX:POS) announced that the restart of its Lake Johnston project in Western Australia requires a capital injection of some AU$8.3 million.

As quoted in the press release:

It is anticipated that the restart of operations at Lake Johnston will follow initial ore sales from Windarra. Offtake negotiations for Lake Johnston are well advanced with several interested parties. The restart of Lake Johnston will be financed from a combination of existing cash, sales revenue from Windarra and potentially with some debt for working capital purposes.

MD and CEO David Singleton stated:

Lake Johnston has an exciting resource potential with several zones of greater than 4% nickel in the mineralised resource. The quality of the existing infrastructure is excellent and as a result, production could be restarted very quickly. However, we believe that there are clear options to improve the mining methodologies and approach to reduce costs and improve nickel recovery. We will be working as fast as possible in this area during the first quarter of next year.

Click here for the Poseidon Nickel Ltd. (ASX:POS) press release