Poseidon in top spot to grow high-grade nickel inventory with new Silver Swan hits
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Drilling by Poseidon at Silver Swan is setting the company up nicely to add even more tonnes to the high-grade nickel resource and reserve at its WA project.
Poseidon Nickel (ASX:POS) reported “exceptionally high-grade” intercepts from drilling into the Tundra-Mute zone within the Silver Swan Channel.
Drilling delivered a top hit of 15m at 17.92% nickel from 265m, which included higher grade intercepts again of 2.2m at 19.74% nickel from 270.3m and 1.5m at 21.2% nickel from 277m.
“We are delighted that the recent drilling has returned these outstanding high-grade results which will most certainly add tonnes to the resource base at Tundra-Mute,” Managing Director Peter Harold said.
“While these results are very significant on their own, the fact that the down hole EM survey has returned strong EM conductors is a good indication that there is additional high-grade mineralisation in the vicinity of the existing know mineralisation.
“These are fantastic results and demonstrate the prospectivity of the Silver Swan Channel.”
Other notable hits in the recent batch of results were 12.9m at 10.63% nickel from 241.1m, including 5.9m at 17.44% from 243.8m; 6m at 11.36% from 257m; 11m at 13.26% from 288m; and 3.5m at 16.3% from 287.9m.
Poseidon has so far drilled 23 holes into the Tundra-Mute zone and two more are in progress.
A recent downhole electromagnetic (DHEM) program completed at Silver Swan identified seven strong conductor plates, three of which are new untested targets. The strong conductivity can be interpreted as being indicative of massive sulphides.
Poseidon is keen to complete the drilling and EM survey of hole PTMD023 because it is highly likely the Silver Swan Channel continues below the current known mineralisation.
The company said the hole could provide a target for future drilling to extend the high-grade resources within this highly mineralised channel.
The company is drilling at Silver Swan to increase the confidence of the resource as well as potentially find high-grade mineralisation outside the current resource.
The Silver Swan and Golden Swan deposits provide Poseidon with high-grade nickel that can be blended with the lower grade Black Swan disseminated open pit ore to increase the grade and quality of the concentrate.
In late October, Poseidon released a maiden indicated and inferred resource for Golden Swan. This boosted the high-grade indicated resources at Black Swan to 219,000 tonnes at 7% nickel for 15,330 tonnes of contained nickel.
Black Swan has a 2.2-million-tonne-per-annum processing plant in good condition, which provides Poseidon with a low-cost and relatively quick restart option.
In early September, a scoping study showed the most economically attractive option for a production restart at Black Swan was to refurbish the 2.2Mtpa processing circuit, derated to 1.1Mtpa and fill that plant to maximise nickel concentrate production.
Poseidon is on track to deliver a bankable feasibility study in the middle of 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.