(MENAFN - ProactiveInvestors - Australia) Poseidon Nickel (ASX: POS) has received conditional approval from Western Australian Premier Colin Barnett to restart nickel mining at Mt Windarra in the North Eastern Goldfields.
Final approval for the project is now subject to demonstrating that project financing and offtake contracts are in place.
Mt Windarra has reserves of 1.22 million tonnes at 1.3% nickel for total contained nickel of 15,880 tonnes.
It also includes total Inferred and Indicated Resources of 9.27 million tonnes at 1.56% for 144,400 tonnes of nickel.
Further revenue could come from the Windarra Gold Tailings project, which holds Indicated Resources of almost 11 million tonnes at 0.52 grams per tonne for 182,500 ounces of contained gold.
Poseidon has completed its Definitive Feasibility Study (DFS) and is targeting initial concentrate production in 2014. The concentrator plant to be constructed at Mt Windarra is expected to have a minimum throughput capacity of 700,000 tonnes of ore per annum.
The project is a higher grade nickel sulphide deposit that has demonstrated high recovery levels through a standard nickel floatation concentrator.
It also proposes to construct a gold tailings retreatment facility.
Windarra will be the first nickel project to be developed in Western Australia for many years.