23 Nov

2021 AGM Presentation

Managing Director & CEO 23 November 2021 AGM Presentation Disclaimer and Competent Person Statement Disclaimer This presentation is for information purposes only . It has been prepared for the purpose of providing general information about Poseidon Nickel Limited ("Poseidon") . It should not be considered as an offer, invitation, solicitation or recommendation to subscribe for or purchase any securities in Poseidon in any jurisdiction . It is not recommended that any person makes an investment decision in relation to Poseidon in reliance on this presentation material . This presentation does not constitute financial product advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons . Recipients should seek professional advice when deciding if an investment is appropriate . All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments . This presentation contains forecasts and forward - looking statements . Such statements are predictions only based on available data which maybe unreliable and is subject to inherent risks and uncertainties . Investors are cautioned that forward - looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward - looking statements due to the inherent uncertainty therein, which could cause actual values, results, performances or achievements to differ materially from those expressed, implied or projected in this presentation . This overview does not purport to be all - inclusive or to contain all information which its recipients may require in order to make an informed assessment of the project prospects . Each of Poseidon, its officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability, direct, indirect or consequential for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from . Poseidon accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation . Competent Person Statements The information in this report that relates to Exploration Results is based on, and fairly represents, information compiled and reviewed by Mr Andrew Pearce, who is an employee of Poseidon Nickel, and is a Member of The Australian Institute of Geoscientists The information in this report which relates to the Black Swan Mineral Resource is based on, and fairly represents, information compiled by Mr David Reid who is a full - time employee of Golder Associates Pty Ltd and who is a Fellow of the Australasian Institute of Mining and Metallurgy . The information in this report which relates to the Black Swan Ore Reserve is based on, and fairly represents, information compiled by Mr Francois Bezin who is a full - time employee of IMC Mining and is a Member of the Australasian Institute of Mining and Metallurgy . The information in this report which relates to the Golden Swan Mineral Resource is based on, and fairly represents, information compiled by Mr Andrew Pearce, Exploration Manager, who is a full - time employee at Poseidon Nickel, and is a Member of The Australian Institute of Geoscientists and Mr Ian Glacken who is a full - time employee of Optiro Pty Ltd and is a Fellow of the Australasian Institute of Mining and Metallurgy . The information in this report which relates to the Silver Swan Mineral Resource is based on, and fairly represents, information compiled by Mr Steve W arriner, Chief Geologist, who was a full - time employee at Poseidon Nickel, and is a Member of The Australian Institute of Geoscientists and Mr Kahan Cervoj who is a full - time employee of Optiro Pty Ltd and is a Fellow of the Australasian Institute of Mining and Metallurgy . The information in this report which relates to the Silver Swan Ore Reserve is based on, and fairly represents, information compiled by Mr Matthew Keenan who is a full - time employee of Entech Pty Ltd and is a Member of the Australasian Institute of Mining and Metallurgy . The information in this report which relates to the Lake Johnston Mineral Resource is based on, and fairly represents, information compiled by Mr Steve W arriner, Chief Geologist, who was a full - time employee at Poseidon Nickel, and is a Member of The Australian Institute of Geoscientists and Mr David Reid who is a full - time employee of Golder Associates Pty Ltd and is a Fellow of the Australasian Institute of Mining and Metallurgy . The information in this report which relates to the Lake Johnston Ore Reserves Project is based on, and fairly represents, information compiled by Mr Matthew Keenan who is a full - time employee of Entech Pty Ltd and is a Member of the Australasian Institute of Mining and Metallurgy . The information in this presentation which relates to the Silver Swan Tailings Mineral Resource Resources is based upon details compiled by Ian Glacken, who is a Fellow of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists . Ian Glacken is an employee of Optiro Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and the deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) . The information in the updated Gold Tailings Project which relates to Mineral Resources is based upon details compiled by Ian Glacken, who is a Fellow of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists . Ian Glacken is an employee of Optiro Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and the deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) . The Company is not aware of any new information or data that materially affects the information in the relevant market announcements . All material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed . Mr Pearce, Mr W arriner, Mr Cervoj, Mr Glacken Mr Reid, Mr Bezin and Mr Keenan all have sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code 2012 ) . Mr Pearce, Mr W arriner, Mr Cervoj, Mr Glacken and Mr Keenan have consented to the inclusion in the report of the matters based on his information in the form and context in which it appears . The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release Forward Looking Statements This release contains certain forward looking statements including nickel production targets . Often, but not always, forward looking statements can generally be identified by the use of forward - looking words such as “may”, “will”, “except”, “intend”, “plan”, “estimate”, “anticipate”, ”continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production and expected costs . Indications of, and guidance on future earnings, cash flows, costs, financial position and performance are also forward - looking statements Forward looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change, without notice, as are statements about market and industry trends, which are based on interpretation of current market conditions . Forward looking statements are provided as a general guide only and should not be relied on as a guarantee of future performance . Forward looking statements may be affected by a range of variables that could cause actual results or trends to differ materially . These variations, if materially adverse, may affect the timing or the feasibility and potential development of the Golden Swan underground mine . 2 The Poseidon Story 3 Combined Nickel Resources ~400kt Ni 1 and Growing 2Mtpa processing plant at Black Swan 1.5Mtpa processing plant at Lake Johnston (both on C&M) Gold Tailings Project containing 180koz Au + option to treat another 62koz Au BFS completed 1 Targeting nickel production during 1Q 2023 Western Australian focused Experienced exploration and development team • Three quality nickel sulphide assets Significant exploration upside Golden Swan Maiden resource 160kt @ 3.9% Ni for 6.25kt Ni 1 Progressing toward generating revenue in early 2023 Golden Swan and Silver Swan Very high - grade nickel Multiple production scenarios given two strategically located processing plants 1 Refer Minerals Resource and Reserve tables, attached Capital Structure 4 Capital Structure/Enterprise Value ASX Code POS Shares on Issue 3.064B Share Price (22 November 2021) $0.11 Market Cap ~$340M Cash (30 September 2021) ~$28M 4 4 Share Price Performance Significant Shareholders 11.9% 11.7% 2.8% 2.1% 2.0% 69.6% Black Mountain Metals Wyloo Metals HSBC Custody Nominees Private Investor Citicorp Nominees Remaining Shareholders $- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $- $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 Nickel Price ($US/lb) Closing Share Price ($A) A$ Share Price US$ Nickel Price Corporate Strategy 5 5 5 Our Vision is to build a sustainable nickel producer delivering value through performance and growth To achieve our Vision: • develop a pathway to production • targeted exploration across our nickel asset portfolio • BD opportunities proximal to our existing assets Fill the Mill is the first step towards becoming a +15ktpa nickel producer Capabilities & Culture Financial ESG “A sustainable nickel producer delivering value through performance and growth” Pathway to Production Targeted Exploration Business Development Continue to build exploration success to support a plus 15ktpa pipeline of production by targeting existing Poseidon tenements, therefore creating value for our shareholders . Commence operations at key assets currently on C&M by refurbishment of Black Swan circuit to 1.1Mtpa capacity to maximise value and build the foundation of a safe, sustainable operation . Undertake Business Development activities to enhance shareholder value. Wellbeing Growth Safety Respect Nickel Outlook 6 Electric Vehicles (EVs) drive nickel demand ? EV sales January – July 2021 increased 146% yoy from to 3.1 million. Total sales for 2021 expected to hit 5.8 million, up 83% year - on - year, representing 6.5% of total global vehicle sales Macquarie, September 2021 ? All major car manufacturers have set dates from which they will only produce electric power vehicles (ranging 2025 - 2035) ? Demand for nickel forecast to grow x3.7 between 2020 and 2050 ? Nickel price expected to rise to incentivise new production capacity to meet increased demand Projected Base Metal Demand Growth Achievements in the last 12 months 7 What we said we’d achieve What we achieved Grow high grade nickel Resources and Reserves ? Black Swan – drill out Golden Swan, test the Southern Terrace ? Windarra – test additional targets, review existing resources ? Lake Johnston – determine optimum pathway for this asset Take advantage of positive price outlook for Ni and gold to generate income ? Nickel – Black Swan – post Golden Swan drill out, study DSO vs restarting concentrator ? Gold - monetise Windarra tailings Black Swan restart • Scoping study completed noting low capital and operating expenditure for 1.1Mtpa circuit • Blended feed including Silver Swan Tailings to improve concentrate marketability • Silver Swan Tailings maiden Resource • Golden Swan development drive completed for resource drilling and future mining access • Golden Swan maiden Resource • 5 - year water access agreement Lake Johnston – major Exploration targeting review Windarra – Gold Tailings BFS Funding totaling $38 million secured via placements and SSP to drive strategic outcomes POS market cap currently ~$340 million, up from ~$200 million at 2020 AGM Black Swan Project 8 Aerial view of Black Swan Open Pit Project Overview 9 History ? Black Swan Production - 5.9Mt @ 0.7% Ni for 41kt Ni ? Silver Swan Production - 2.7Mt @ 5.1% Ni for 137.5kt Ni ? Total production - 178.5kpta Ni in concentrate Existing Resources & Infrastructure ? Silver Swan underground - 16kt Ni* (grade - 9.5%) 1 ? Golden Swan underground – 6.3kt Ni* (grade – 3.9%) 2 ? Silver Swan Tailings 3 – 6.2kt Ni & 460t Co ? Black Swan open pit & stockpiles - 179kt Ni* (grade - 0.6%) 1 ? 2.2 Mtpa processing plant and associated infrastructure Current Focus – FILL THE MILL ? BFS on 1.1Mtpa processing circuit and ore feed sources ? Ore sources – Black Swan pit, Silver Swan tailings, high grade Golden Swan and Silver Swan ? Continuing to explore for more Ni (both underground and open pit) * Contained Ni Metal 1 Mineral Resources Statement Table 1 attached . 2 See ASX release 27 Oct 2021 3 see ASX release 15 Sept 2021 Black Swan 2.2Mtpa milling circuit Plans to refurbish and de - rate to 1.1Mtpa throughput S ou t h e r n Terrace N Black Swan Pit Production: 5.9Mt @ 0.7%Ni for 41Kt Ni August 2019 Mineral Resources: 179Kt Ni Silver Swan UG Production: 2.7Mt @ 5.1%Ni for 137.5Kt Ni August 2019 Mineral Resources: 16Kt Ni Golden Swan 2021 Indicated and Inferred Resources Mine Areas August 2019 Mineral Indicated Resource Shapes August 2019 Mineral Inferred Resource Shapes Footwall Surface Underground Development Proposed Underground Development Resources Summary 10 Refer Mineral Resources Statement Table 1 attached. Refer Mineral Reserves Statement Table 2 attached. Refer Production statistics – from production records of previous owners compiled by POS Silver Swan Reserve 130Kt @ 5.2% Ni for 6,600t Ni Golden Swan New discovery October 2021 Mineral Resources: 6Kt Ni The Company is undertaking exploration programs to define a larger Mineral Resource to feed a longer life project Prospectivity of the Southern Terrace remains down plunge from Golden Swan Silver Swan Tailings September 2021 Mineral Resources: 6Kt Ni Opportunity to Increase Resource - Black Swan Open Pit 11 11340N section highlights changes to serpentinite and mineralisation extents from the 2019 RC program Opportunity to significantly increase open pit mine - life; • Major drilling program underway testing several wide, open ended disseminated sulphide lodes that are hosted in a metallurgical favorable Serpentinite • The opportunity was identified from the 2019 RC drilling program • Aim to significantly build the Indicated resource inventory to be used in “feed the mill” mining studies 1 ASX Announcement “Black Swan Exploration update” dated 25 October 2021. Historic Serpentinite Outline Possible Serpentinite Extensions Disseminated Inferred Resource Outline Possible Disseminated Extensions Opportunity to Increase Resource – Silver Swan The ongoing Silver Swan resource drilling program has returned a number of intersections in the Inferred zone: • PTMD007 1 : 4.2m of massive and stringer Ni - Cu sulphides from 257.95m • PTMD014 1 : 10.1 of massive and stringer Ni sulphides from 288.4m, including 8.05m of massive sulphides from 289.95m • PTMD015 1 : 6.2m of massive and stringer Ni - Cu sulphides from 287.9, including 3.8m of massive sulphides from 287.9m • PTMD018 2 : 13.6m of massive Ni - Cu sulphides from 265.5m This program will continue to convert Inferred Resources to Indicated and mine studies to confirm mining inventory and a potential JORC Reserve upgrade Long Section of recent intersections in and around Tundra - Mute and Peking Duck 1 ASX Announcement “More High Grade Intersections At Silver Swan” dated 9 November 2021. 2 ASX Announcement “Exceptional Intersection of Massive Sulphides at Silver Swan” dated 22 November 2021. 12 Feasibility Study 13 Visual Massive Sulphides in Hole PTMD018 from 265.5M • Since announcing “Fill the Mill” strategy the Company has made considerable progress on workstreams progressing our Black Swan project towards a restart • Restart based on feeding the 1.1Mtpa processing circuit with a combination of feed sources to maximise nickel units produced • Previous test work confirms Silver Swan tailings improves Fe:MgO ratio of concentrate • Current met testwork program is designed to determine most suitable blend of feed sources, average metallurgical recovery and typical concentrate specifications for marketing purposes • Company continues to engage with parties who have expressed interest in offtake and funding arrangements 13 F ill The Mill Strategy – 1.1Mtpa 1 GR Engineering Scoping Study, ASX Announcement dated 27 July 2021. Capex and opex estimates to +/ - 20% accuracy Black Swan Open Pit Potential feed sources Silver Swan Golden Swan Silver Swan Tailings Stockpile Future feed – 100% owned Windarra & 3 rd party feed 1.1Mtpa circuit, opex $29.40/t 1 diesel power, $26.00/t grid power Target concentrate specifications: - Ni grade 10% or greater - Fe:MgO greater than 3:1 - Arsenic below 5,000ppm Offtake terms: - Offtake terms have improved recently - Higher quality concentrate will command better offtake terms 14 Blending feed sources can be complicated. Metallurgy studies on feed blends is crucial to optimise Ni recovery and ensuring a marketable product Inflationary pressures on cost estimates noted in recent feasibility studies (i.e. Liontown , Bardoc ) Smeltable concentrates have impurity restrictions, product specs need to be within rejection limits Refurbishment: 6 months, capex $22.1M 1 Greater than 5 years project life Marketable Concentrate Progress Since 2018 Black Swan Study 15 - Mining inventory included 23,200t contained Ni, of which 30% was Inferred classification - 2.2Mt ore processed over 25 months with average Ni grade of 1.07% Ni 2018 Black Swan Study 2022 Black Swan BFS (progress to date) - Concentrate produced over last 12 months of operation averaged below typical Fe:MgO rejection limit of 3:1 (2.2:1 Fe:MgO ratio with 5% Silver Swan blended, 1.5:1 Fe:MgO with no Silver Swan blended) - Pre - production works identified in the 2018 Study required for a recommencement of operations at Black Swan - No committed water source for the project - On - site diesel fired power station - Golden Swan and Silver Swan Tailings maiden Resources added 12 kt Ni contained in aggregate - Ongoing drilling at Silver Swan and below Black Swan open pit aimed at increasing mining inventory to plus 5 year project life - Test work has confirmed the addition of high iron sulphide content Silver Swan tailings improves the Fe:MgO to above 3:1 - Pre - production works completed include underground escapeway refurbishment, refurbishment of certain underground infrastructure and various safety works in and around the process plant - Five - year water access agreement with Norton Gold Fields - Infrastructure exists to transfer water to Black Swan and requires minimal capital investment ahead of a project restart - Progressing discussions to secure an allocation from the grid to supply power for Black Swan - Grid power reduces operating cost and carbon emissions of the project Mining Inventory Marketable Product Pre - production Works Process Water Power Source Management is de - risking the project with an aim to attract offtake and funding opportunities Fill the Mill Revised Indicative Timetable BIG MILL 1.1 MTPA Dec 21 Mar Q22 Jun Q22 Sep Q22 Dec Q22 Mar Q23 ORE SOURCES GOLDEN SWAN Mining Study (Inventory/Reserve) DSO Discussions SILVER SWAN Resource Upgrade Drilling Mining Study / Reserve Estimate BLACK SWAN DISSEMINATED OPEN PIT Mining Study Upgrade Open Pit Resource Drilling SILVER SWAN TAILINGS Metallurgical Testwork PROCESS PLANT (1.1mtpa option) Ore Blend Metallurgical Testwork Bankable Feasibility Study Preliminary Economic Assessment Regulatory Approvals Final Investment Decision PROJECT DEVELOPMENT Plant Refurbishment Open Pit Dewatering Underground Mine Development Open Pit Mine Development Ore Commissioning Note: proposed timeline could change subject due to delays in completing proposed workstreams, factors outside the control of th e Company or micro economic considerations like commodity prices and exchange rates. Mid Dec 2021 Mid Jul 2022 16 Lake Johnston 17 Lake Johnston Processing Plant Project Overview History ? Emily Ann - 1.5Mt @ 3.5% Ni mined and processed between 2001 - 2007 ? Maggie Hays - 10Mt @ 0.6%Ni mined and processed between 2008 - 2014 ? 11.5Mt ore mined and processed to produce +100kt Ni* Current resources & infrastructure ? Maggie Hay - 3.5Mt @ 1.5% Ni for 52kt Ni 1 ? 1.5Mtpa process plant (on C&M) Exploration & Development Potential – current activities ? NewExco exploration targeting report received, 1st phase drilling program in the planning stage ? Update restart study on Maggie Hays mine and refurb of processing ? Test geological theory ? More Kambalda - style deposits ? Intrusive model - follow up Abi Rose Ni discovery 2 18 *Contained Ni metal 1 Reference Mineral Resources Statement Table 1 attached 2 ASX Announcement Successful Drill Program at Abi Rose Concluded with all three diamond holes intersecting Massive Nickel - Copper sulphides” dated 21 November 2018 Lake Johnston processing plant 19 Lake Johnston – NewExco Review of Exploration Targets Work undertaken by NewExco • NewExco reviewed a number of prior studies into the exploration potential at Lake Johnston and confirmed a number advanced targets Targets Identified • Abi Rose Extension Drilling • Maggie Hays drilling for Resource Expansion - based on the reopening of the Maggie Hay underground operation • Emily Ann/Abi Rose type intrusions - relogging to identify and locate parts of the ultramafic intrusive system that may have been overlooked • Vision/Spielers - Surface EM/Drilling - these areas have encountered nickel sulphides in the past, proving the prospectivity of the area • Western Komatiite/Roundtop - Surface Sampling/Drilling - a valid target in an underexplored area with high prospectivity Next Steps • Western Ultramafic drilling program being designed for PoW submission • Targeting exploration to commenced 1 st half CY2022 Mt Windarra 20 Windarra Head Frame at Sunset Project Overview History ? Discovered in 1969 and mined from 1974 - 1983 ? 8Mt mined and processed to produce 84kt Ni* Current resources & infrastructure ? Mt Windarra 71.5kt Ni* (grade - 1.64%)¹ ? Cerberus Nickel 69kt Ni* (grade - 1.5%)¹ ? South Windarra 8kt Ni* (grade - 0.98%)¹ ? Gold Tailings contains ~180,000 oz/Au Resource 2 ? July 2021 BFS on Gold Tailings Project 2 – confirmed low risk, low capex & opex Future activities – Gold tailings & nickel production focus Gold ? DFS completed July 2021 2 – 53koz recoverable, free cash $30.6M, IRR 50% ? Discussing potential partnerships to fast - track development and monetise asset Nickel ? Currently updating studies on mining Mt Windarra and trucking to Black Swan or Leinster 21 *Contained Ni metal 1 Refer Mineral Resource Statement attached Table 2 2 Refer ASX Announcement “Robust BFS completed for Windarra Gold tailings Project” dated 23 July 2021 3 Refer ASX Announcement “Poseidon to acquire rights to treat Lancefield gold tailings” dated 17 August 2020 21 Value Add to Fill the Mill Strategy • The Fill The Mill strategy i s to refurbish the 2.2Mtpa mill at Black Swan and de - rate to 1.1Mtpa throughput and feed it with high and low grade ore • Windarra and/or third party feeds present opportunities to increase the Black Swan project above the 1.1Mtpa throughput • Revisiting previous mining studies on Mt Windarra to assess potential to mine and transport ore to Black Swan • Continuing to drill test the Black Swan disseminated mineralised zone to increase Serpentinite ore • Exploration success with regard to high grade sulphide mineralisation 22 22 Key Deliverables – Pathway to Production in 2023 Black Swan ? Convert Golden Swan Resource to Reserve ? Grow Silver Swan Indicated Resource and convert to Reserve ? Increase Serpentinite mining inventory in the Black Swan Open Pit ? Continue to explore for high - grade mineralisation ? Complete BFS on 1.1Mtpa processing plant fed from combination of open pit, underground, Silver Swan tailings and stockpiles ? FID by July 2022 commissioning of mill during 1Q 2023 Mt Windarra ? Study option of trucking ore to Black Swan or Leinster ? Fast track development of gold tailings asset with a suitable partner Lake Johnston ? Prioritise all exploration targets & start drilling ? Update mining and processing studies on Maggie Hays orebody and 1.5Mtpa mill 23 Core from PTMD018 Peter Harold Managing Director & CEO T: + 61 (0) 6167 6600 E: admin@poseidon - nickel.com.au W: poseidon - nickel.com.au ASX:POS poseidon - nickel @Poseidon - Nickel Table 2.2 Windarra Gold Tailings Project Central Dam Mineral Resource – JORC 2012 Tabulation INDICATED Tonnes (t) AU (g/t) Au (oz) As (ppm) CU (ppm) Ni (%) Central 6,198,000 0.37 74,000 435.0 270 0.3 Nickel Sulphide Resources JORC Complianc e Cut Off Grade MINERAL RESOURCE CATEGORY INDICATED INFERRED TOTAL Tonnes (Kt) Ni% Grade Ni Metal (t) Tonnes (Kt) Ni% Grade Ni Metal (t) Tonnes (Kt) Ni% Grade Ni Metal (t) Co% Grade Co Metal (t) Cu% Grade Cu Metal (t) BLACK SWAN PROJECT Black Swan 2012 0.40% 9,600 0.68 65,000 21,100 0.54 114,000 30,700 0.58 179,000 0.01 4,200 NA - Silver Swan 2012 4.50% 108 9.4 10,130 61 9.7 5,900 168 9.5 16,030 0.19 316 0.4 679 Golden Swan 2012 1.00% 111.6 4.7 5,200 48.4 2.2 1050 160 3.9 6,250 0.08 123 0.3 480 LAKE JOHNSTON PROJECT Maggie Hays 2012 0.80% 2,600 1.6 41,900 900 1.17 10,100 3,500 1.49 52,000 0.05 1,800 0.1 3,400 WINDARRA PROJECT Mt Windarra 2012 0.90% 922 1.56 14,000 3,436 1.66 57,500 4,358 1.64 71,500 0.03 1,200 0.13 5,700 South Windarra 2004 0.80% 772 0.98 8,000 - - - 772 0.98 8,000 NA - NA - Cerberus 2004 0.75% 2,773 1.25 35,000 1,778 1.91 34,000 4,551 1.51 69,000 NA - 0.08 3,600 TOTAL Total Ni, Co, Cu Resources 2004 & 2012 16,887 1.04 179,230 27,275 0.81 222,550 44,209 0.9 401,780 0.02 7,639 0.03 13,859 Mineral Resource and Reserve Statement Tables Table 1 : Nickel Projects Mineral Resource Statement Table 1 – Nickel Resource Table Black Swan Resource as at 22 Jul 2014 (ASX announcement “Poseidon Announces Black Swan Mineral Resource” 4 Aug 2014 ) Silver Swan Resource as at 5 Aug 2019 (ASX announcement “Silver Swan Resource Upgrade … ” 5 Aug 2019 ) Maggie Hays Resource as at 17 Mar 2015 (ASX announcement “ 50 % Increase in Indicated Resources at Lake Johnston” 17 Mar 2015 ) Golden Swan Resource as at 27 Oct 2021 (ASX Announcement “Golden Swan Maiden Resource” 27 Oct 2021 ) Mt Windarra Resource as at Nov 2014 (ASX announcement “Poseidon Announces Revised Mt Windarra Resource” 7 Nov 2014 ) South Windarra and Cerberus Resource as at 30 Apr 2013 (ASX announcement “Resource Increase of 25 % at Windarra Nickel Project” 1 Dec 2011 ) The Company is not aware of any new information or data that materially affects the information in the relevant market announcements . All material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed . Table 1 B – Silver Swan Tailings Resource Silver Swan Tailings Resources as at 15 September 2021 (ASX Announcement “Silver Swan Tailings – Maiden Resource Estimate” 15 September 2021 ) Table 2 : Gold Tailings Project Mineral Resource Statement Table 2.1 Windarra Gold Tailings Project JORC2012 Mineral Resource The Windarra Tailings estimate for North and South Dams has been reported based on the following: • no cut - off grade has been used to report the resource, as potential mining method dictates removal of the entire dams. • a dry bulk in situ density of 1.6 t/m 3 has been used to derive tonnages. • resource numbers in Table 2.1 may not sum exactly due to rounding. Windarra Gold Tailings Resource as at 22 June 2020 (see ASX announcement “Gold Tailings Resource at Windarra updated to JORC 2012 Indicated” 22 Jun 2020 ) . The Company is not aware of any new information or data that materially affects the information in the relevant market announcements . All material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed . Table 2 . 2 Windarra Central Dam JORC 2012 Mineral Resource The Windarra Tailings estimate for the Central Dam has been reported based on the following : • No cut - off grade has been used to report the resource, as the potential mining method dictates removal of the entire dam down to a specified elevation . • The mineralisation has been reported above a flat elevation of 446 mRL ; there are tailings below this level but these have been shown by drilling to contain no gold, and it is anticipated that the proposed mining method will not treat material below this elevation . • A dry bulk in situ density of 1 . 6 t/m 3 has been used to derive tonnages . • Resource totals may not sum exactly due to rounding . Table 3 : Nickel Project Ore Reserve Statement Table 3 – Nickel Reserve Table Silver Swan Underground Reserve as at 26 May 2017 (ASX announcement “Silver Swan Definitive Feasibility Study” 26 May 2017 ) . Black Swan Open Pit Reserve as at 5 Nov 2014 (ASX announcement “Poseidon Announces Black Swan Ore Reserve” 5 Nov 2014 ) . The Company completed an upgrade to the Silver Swan Indicated Resource in 2019 which was based upon the 2015 Silver Swan Resource Estimate (refer Table 1 above) . At this point it is not known the impact the updated to the Silver Swan Resource will have on the Silver Swan Reserve . The Company is not aware of any other new information or data that materially affects the information in the relevant market announcements for the Black Swan Open Pit Reserve . All material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed . Table 2.1 Windarra Gold Tailings Project North and South Dams Mineral Resource – JORC 2012 Tabulation INDICATED Tonnes (t) AU (g/t) Au (oz) Ag (g/t) As (ppm) CU (ppm) Ni (%) North Dam 3,902,000 0.78 98,000 1.9 1,805 365 975 South Dam 850,000 0.50 14,000 0.6 645 355 2,533 Total 4,752,000 0.73 112,000 1.7 1,600 363 1,250 Nickel Sulphide Reserves JORC Compliance ORE RESERVE CATEGORY PROBABLE Tonnes (kt) Ni % Grade Ni Metal (t) Silver Swan Project Silver Swan Underground 2012 130 5.2 6,800 Silver Swan Open Pit 2012 3,370 0.63 21,500 Total Ni Reserves 2012 3,500 0.81 28,300 Zone Table 1B. Silver Swan Tailings Resource - September 2021 Measured Tonnes Ni% Ni t Cu% Co ppm Fe% MgO% As% S% Density 1 280,600 0.75 2,118 0.02 283 16.7 8.81 0.04 7.56 2.84 2 394,365 1.04 4,082 0.06 967 26.1 4.71 0.17 13.56 3.09 Total 674,964 0.92 6,201 0.04 683 22.2 6.42 0.11 11.06 2.98
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