Poseidon has added significant nickel tonnes to the high-grade inventory at its Black Swan project with the completion of a maiden resource for the Golden Swan deposit.

Poseidon Nickel (ASX:POS) today announced a maiden indicated and inferred resource for Golden Swan of 160,000 tonnes at 3.9% for 6,250 tonnes of contained nickel with the bulk of Resource  of 111,600t @ 4.7% Ni for 5,200t contained nickel in the Indicated category.

This has boosted the total high-grade indicated resources at Black Swan to 219,000 tonnes at 7% for 15,330 tonnes of contained nickel.

Importantly, the new Golden Swan resource is located just 120m from the drill drive developed earlier this year and could be brought into production in a short time frame, managing director Peter Harold noted.

“The Golden Swan resource is a significant development in the progress towards restarting operations at Black Swan,” he said.

“Mine studies have commenced to potentially convert the Golden Swan resource to a mine reserve.”

Golden Swan was first discovered in March 2020 after the first two holes hit high-grade massive nickel sulphides of 23.1m at 4% nickel and 0.4% copper, with follow-up holes delivering 9m at 10.46% nickel and 6.4m at 9.6% nickel.

Since then, drilling has confirmed the continuity of high-grade mineralisation at the discovery.

Black Swan, which Poseidon bought from Norilsk Nickel at the end of 2014, already has a 2.2-million-tonne-per-annum processing plant in good condition.

In early September, a scoping study showed the most economically attractive option for a production restart at Black Swan was to refurbish the 1.1Mtpa processing circuit and fill that plant to maximise nickel concentrate production.

“Along with Silver Swan reserve, it is believed that two independent high-grade feed sources should assist in de-risking the restart at Black Swan under the Fill the Mill Strategy,” Harold said.

“Other programs underway as part of the bankable feasibility study include the resource definition drilling program down plunge of Silver Swan, mining studies on open pit and underground resources, metallurgical testwork on blending the various feed sources and capital and operating cost estimates by GR Engineering.

“We remain committed to our project schedule of commissioning Black Swan during December 2022.”




This article was developed in collaboration with Poseidon Nickel, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.