Drilling at Poseidon’s Golden Swan prospect has come up trumps, delivering one of the best high-grade nickel intersections so far.

Poseidon Nickel (ASX:POS) is on track to deliver a maiden resource for its Golden Swan deposit in Western Australia in the September quarter with more high-grade nickel returned.

“Drilling continues on the resource definition program at Golden Swan with one of our best high-grade intersections returned in hole PSGD025, together with some broad lower grade intersections,” managing director Peter Harold said.

Hole PSGD025 returned a top hit of 2.1m at 13.79% nickel, including 1.3m at 12.07% and 0.8m at 16.5%, followed by a second intersection of 14m at 1.16% nickel.

The broad lower-grade hits included 5.65m at 1.97% nickel and 8.45m at 1.05% nickel.

Poseidon began the 57-hole, 13,000m resource definition drilling program in April and is targeting an increase in the confidence in the continuity of the Golden Swan mineralisation to JORC 2012-compliant inferred and indicated levels.

Poseidon is ahead of schedule thanks to a well-developed, competent felsic footwall unit that has resulted in high advance rates.

The company has so far completed 39 holes for a total of 11,222m drilled.

Harold said the Southern Terrace remained prospective outside the Golden Swan mineralised zone and further drilling and geophysics would be undertaken within the greater Southern Terrace area.

“We will continue to release drill hole data as it comes to hand, culminating in the maiden Golden Swan Resource during the September 2021 quarter,” he said.

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, which remains open in both plunge directions.

Poseidon non-executive director and nickel expert Peter Muccilli has dubbed the Southern Terrace the “Peppermint Grove of exploration”, a reference to the riverside suburb that hosts some of Perth’s most expensive homes.

Stockbroker Morgans shares a similar view, suggesting that Golden Swan can rival Silver Swan in size if mineralisation continues down along the Southern Terrace in the same way as the Silver Swan channel.

Black Swan, which Poseidon bought from Norilsk Nickel at the end of 2014, already has a 2.2Mtpa processing plant in good condition and contains 195,000 tonnes of nickel in resources including 16,000 tonnes grading 9.5% nickel at the Silver Swan underground and 179,000 tonnes in lower grade open pit and stockpiled material.


Silver Swan channel, Golden Swan discovery and Southern Terrace. Pic: Supplied.




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.