Poseidon Nickel has entered into an agreement with Encore Minerals to develop the gold and nickel tailings at the Windarra tailings project in Western Australia using Draslovka’s proprietary Glycine Leaching Technology and other patented solutions.
Under the agreement, Encore will be responsible for the funding, development, operation, closure and rehabilitation of the project, subject to certain conditions being met. Additionally, Poseidon will receive $1.25 million in cash, a 3% net smelter return royalty on production, and $1.6 million toward an existing rehabilitation bond.
“We are pleased to see that Draslovka have applied and expanded the use of Glycine Leaching Technology successfully at a number of operations worldwide,” said Poseidon CEO Brendan Shalders. Metallurgical testwork completed late last year confirmed potential improvement in gold recoveries from tailings samples and also the potential to extract nickel from Windarra tailings using the technology.
Poseidon owns the Windarra nickel project, and the Black Swan and Lake Johnston nickel operations.
Source: Poseidon Nickel