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Poseidon Nickel has announced an update on its projects and exploration plans.

The Western Australia nickel giant has said the final investment decision (FID) for its Black Swan restart project remains on hold given uncertain global markets, allowing time for additional confirmatory metallurgy test work to be completed.

“Although global inflation is returning to anticipated levels, commodities markets remain volatile and somewhat depressed, as a result the final investment decision remains on hold,” Poseidon managing director and chief executive officer Peter Harold said.

“In the meantime, the company is continuing to progress various work streams while at the same time looking at areas where we can reduce our business costs.”

Initial analysis of the confirmatory metallurgical test work from existing diamond core at Black Swan indicates the non-sulphide nickel content is consistent with the bankable feasibility study.

The company has obtained samples from a second phase of drilling in August and is awaiting further flotation test work.

Restart workstreams at the project are ongoing, including offtake and project debt financing documentation, as well as design and engineering studies with Western Power and discussions with potential accommodation providers.

The Black Swan expansion project will undergo a prefeasibility study later this year with GR Engineering Services finalising the processing plant capital and operating cost estimates.

Mining optimisation processes are already underway based on preliminary cost information and concentrate sample testing remains ongoing with potential customers.

Poseidon’s Lake Johnston exploration project has seen elevated nickel and copper prospects from assays, with highly anomalous platinum group elements confirming strong prospects for of the Western Ultramafic Unit.

Follow up drilling is expected to commence next month to progress all anomalous geochemistry trends identified along the Western Ultramafic Unit including Maggie Hays West.

The Windarra project also recently competed drilling on previously announced Target 5 with no significant mineralisation intersected or defined drillhole electromagnetic data (DHEM) conductors identified.

The company also said it is finalising cost reduction strategies across its operations, with further details coming soon.