Wednesday 27th Sep, 2017

Poseidon announces MoU with Northern Star

Processing facilities at Black Swan. Photo: Poseidon Nickel
Processing facilities at Black Swan. Photo: Poseidon Nickel

WA’s Poseidon Nickel is in talks to use Northern Star’s Black Swan operation to process gold ore, with a Memorandum of Understanding announced this week.

The non-binding MoU will see Poseidon explore the option of processing free milling gold ores at Black Swan, “to become a major gold producer in the highly prospective Goldfields region of Western Australia”.

“Entering into an MoU to process gold ores from Northern Star advances the company’s stated strategy of establishing Black Swan Operations, with all of its existing plant and infrastructure, as a free milling and refractory gold central processing facility and represents a positive step towards establishing the Black Swan Operations as a low capital cost entry into the gold market,” Poseidon chairman Chris Indermaur said.

Black Swan is a 2.2 million tonne per annum processing facility.

It includes a conventional SAG mill, five ball mills, two flotation circuits, multiple thickeners, three ceramic filters and a large concentrate storage shed.

The site also includes tailings disposal cells, a borefield and water treatment plant, a large mine workshop and maintenance facilities, administration buildings, a functional laboratory and metallurgical laboratory, and more.

Poseidon believes Black Swan can process more than 2 million tonnes of gold ore per annum, and intends to progress a detailed feasibility study with a “suitably experienced engineering subcontractor” to begin integrated design at Black Swan.