UNDERGROUND

Early works starting on Western Areas' Odysseus

Early works program starting.

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The $32 million, 18-month program will be focused on evaporation ponds, mine camp readiness, dewatering and decline rehabilitation. Those works will bring Odysseus to development ready status.

Key government approvals are in place.

The tender process for the larger work packages has begun.

The definitive feasibility study is due to be released in the September quarter. It will include an expanded mine life and production profile.

Western Areas managing director Dan Lougher said Odysseus would be the catalyst for the company to create its second production hub in Western Australia.

"We are very excited by both the Odysseus project and the regional exploration potential that the greater Cosmos nickel complex demonstrates in both base and precious metals," Lougher said.

"We have taken this decision to start early works, prior to the release of the DFS, due to our confidence in the overall project and, just as importantly, our confidence in the nickel sulphide market.

"The demand for class-1 nickel sulphides in the battery and electric vehicle market is forecast to grow substantially over coming years.

"We believe that Odysseus is one of a very few select nickel sulphide projects that will be coming into production in a timeframe that will enable it to deliver into that growing demand profile, which we are seeing validated by the strong inbound interest from potential offtake parties and project investors."

The first work program will include the refurbishment of existing evaporation ponds, pipeline upgrades and continuation of pit dewatering.

The existing mining camp, with a 520-person capacity, will also be upgraded in readiness for up to 100 contactors and employees.

The second work program involves construction of two evaporation ponds and dewatering the decline.

The final work program will encompass infrastructure needed to support the rehabilitation of the decline from the portal to 500m below surface.

Once the work programs are complete Odysseus will be development-ready, based on the pre-feasibility study schedule.

The DFS on Odysseus is progressing well.

So far Western Areas expects Odysseus to have a mine life of more than 10 years and production exceeding 12,000t per annum.

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