The Poseidon (ASX:POS) share price is rocketing 15% today

The future of Poseidon's Windarra Project looks golden.

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The Poseidon Nickel Ltd (ASX: POS) share price is soaring after the company released the Definitive Feasibility Study (DFS) for its Windarra Gold Tailings Project.

The company expects the project's gold tailings to provide a cash flow it can invest into its nickel production.

Right now, the Poseidon Nickel share price is 13 cents, 15.45% higher than its previous closing price.

Let's take a closer look at today's news from the Western Australia-based nickel producer.

Poseidon's Windarra DFS

Windarra has been found to have an ore reserve of between 5.54 and 5.73 megatons, with a grading of 0.84 grams of gold per tonne and 2.1 grams of silver per tonne.

This equals around 150,000 ounces of gold and 375,000 ounces of silver.

Depending on the mining method used, Windarra could produce between approximately 53,500 and 55,200 ounces of gold over a 45-month period.

The company says the project's DFS has found it to be profitable. Poseidon is now looking for a partner to help them bring Windarra into production.

The DFS found both hydraulic mining and amphibious dredging to be viable mining methods for the project.

Windarra will likely cost between $25.8 million and $29.5 million to develop. It has an expected net operating cash flow of $30.6 million and an all-in sustaining cost of $1,393 per ounce.

Therefore, the company believes it would take between 27 and 28 months from the start of construction to pay back the cost of the project's development.

Windarra has received ministerial approval. It also has environmental approval, conditional upon its mining proposal being approved within 6 months.

Poseidon Nickel share price snapshot

The Poseidon Nickel share price has been performing well on the ASX lately.

It has gained 81% in 2021. It is also 323% higher than it was this time last year.

The company has a market capitalisation of about $365 million, with approximately 2.8 billion shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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