Poseidon-Encore tailings development unconditional
Perth-based Encore Minerals has cleared the final hurdles to proceed with a new project aimed at processing gold tailings at Poseidon Nickel's Windarra site, in Western Australia.
The development is based on Encore's parent company, Draslovka's, proprietary glycine leaching technology (GLT), a process that promises to offer an environment-friendly alternative for extracting both base and precious metals from oxide and sulphide ores.
The agreement between the two companies, which was first announced in July 2024, has now become unconditional, with all outstanding conditions either satisfied or waived.
Poseidon Nickel has pointed to a key factor that could improve the project’s economic outlook: a sharp rise in gold prices since the original feasibility study for the Windarra gold tailings was completed in 2021. The price of gold has surged from an assumed A$2 500/oz in the 2021 study to more than A$4 000/oz today.
As part of the agreement, Poseidon Nickel will receive an upfront, non-refundable payment of A$250 000, which was received in August 2024 and marks the start of an initial testing phase. The deal is structured as a staged framework, with a final agreement to be executed upon completion of the testwork.
Additionally, Poseidon is set to receive A$1.25-million in total payments, a 3% net smelter return royalty on future production, and A$1.6-million allocated toward the existing rehabilitation bond for the site.
Under the terms of the agreement, Encore Minerals will be responsible for all aspects of the project, including funding, development, operations, and the eventual closure and rehabilitation of the Windarra tailings site.
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