Poseidon Nickel (ASX:POS) shares are continuing their recent run, hitting an intra-day high of $0.13 today, close to a 100% gain from its lows of $0.066 just a few weeks ago.
Earlier this year Poseidon raised $3.8 million at $0.07 for pre-production activities at its Mt Windarra Nickel mine in Western Australia, where it plans parallel gold production.
Notably, the production of gold from tailings that is adjacent to Windarra offers potential for early cash flows at attractive operating costs of just A$800 per ounce.
The Cerberus nickel deposit at Windara has a total Indicated and Inferred resource of 4.55 million tonnes at 1.51% for 68,600 tonnes of nickel, including a Probable reserve of 1.22Mt at 1.3% for 15,880 tonnes of nickel.
The mining cost has been estimated at A$76/t in the DFS.
The capital costs to restart mining at Mt Windara this year could be under $15 million, poised to capitalise on what many institutions believe will be a strong market for nickel in the short and medium term.
Investors are looking for nickel exposure as nickel prices trend higher following Indonesia's ban on export shipments of unprocessed ore as it seeks to push domestic processing.
The Andrew Forrest-backed Poseidon has been one of the recipients of this nickel-focused capital inflow.
Indonesia had accounted for 18-20% of global nickel supply, shipping 41.5 million tonnes of nickel ores in the first nine months of 2013.
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