Poseidon discusses development

Press, Volume CXI, Issue 32678, 6 August 1971, Page 4

Poseidon discusses development

GV.Z.PA.-keuter-Lcopgright)

SYDNEY, August 5.

The directors of Poseidon, Ltd, say in their quarterly report to June 30 that they, are considering a proposal from Australian Anglo-American, Ltd, to assist in financing the company’s commitments in bringing the Mount Windarra deposits to maximum production, and further announcements on this may be expected.

Discussions have recently taken place with the Union Oil-Hanna-Homestake consortium, and the directors are reluctant to commit capital to facilities such as transportation, township, power supply, water supply and concentrator without thoroughly investigated the possibility of joint participation, they say.

They say that a very large reduction in capital expenditure with consequent improvement in investment potential would result from a joint scheme.

■ Discussions have advanced with (unamed) overseas groups on the joint establishment of a nickel smelter to convert the company’s entire concentrate production to matte.

“It would be expected that an arrangement of this kind would, if necessary, dispose of the company's entire matte production on a long-term contract basis. Such a venture would have substantia] freight differentials .between concentrates and matte as well as securing a market for our entire production,” they say.

Nickel values from additional drilling at Mount Windarra, during the quarter include 3.5 per cent nickel and 0.22 per cent copper over a 21ft intersection of ore shoot “E."

The lowest nickel assay was 1.90 per cent.

Further assays from the “D shoot” ranged from 1.99 per cent nickel and 0.21 per cent copper over 32ft to 2.37 per cent nickel and 0.19 per cent copper over 68ft.

In the quarter 28,881 ft of core drilling was completed at Mount Windarra designed to confirm previously drillinferred reserves and to guide underground development.

Other exploration for the quarter involved reconnaissance drilling on the Windarra Well area and geophysical and geochemical surveys on southern claims adjacent to

those held by the Union Oil-Hanna-Homestake consortium.

Significant results from this work included the location of shallow oxidised sulphides assaying 0.48 per cent nickel and 0.50 per cent copper.

On mine development, the directors say that a total of 130 ft of driving was completed on the 400 ft level of the exploratory winze, the ore from which has been metallurgically tested for plant design. The southern production

decline advanced to 258 ft from the face of the portal at a grade of one in nine.

The subsidiary company Lake View and Star, Ltd, treated 96,486 tons (114,038) in the 12 weeks to June 22, producing 22,2570 z gold, (23,4660 z at a head grade of 4.6ldwts (4.l2dwts). Samin, Ltd, reports that commissioning of the Stage I treatment plant at the Burra copper mine, has been completed and a start made at the planned rate of 250 tons a day.

Since June 30 this year, 143,3701 b of copper oxide have been recovered from the coarse section of mined ore.

Direct exploration and development expenditure by Poseidon in the quarter was $2,372,770.

Dalgety interest

Dalgety Australia. Ltd, has acquired for cash a majority shareholding in B.D.H, Industries Pty, Ltd, of Adelaide, manufacturer of Bonaire products. Mr W. J. Vines, chairman of Dalgety, said that for many years his company had been the national distributor of the'Bonaire domestic range of air conditioners, and that the move would enable Dalgety to participate in expanding what it regards as the undoubted potential of B.D.H. Industries.—(P.A.)