Poseidon substantially boosts high-grade nickel resource at Silver Swan

Poseidon Nickel is delivering on its ‘Fill the Mill’ strategy with the release of an updated resource for the Silver Swan deposit that could provide substantially more high-grade feed for the Black Swan plant in WA.

Poseidon Nickel (ASX:POS) has boosted its high-grade nickel inventory with the release of an upgraded resource for Silver Swan that now stands at 130,000t at 9.6% for 12,400t of contained nickel.

Importantly, the contained nickel in the higher confidence JORC Indicated category has jumped by 75%, with high-grade resources from both the Golden Swan and Silver Swan rising to 250,000t at 7.1% nickel for 17,665t of contained nickel.

With more material in the Indicated category, Poseidon can now look to define a high-grade ore reserve – a necessary move for any miner looking to start production.

Managing director Peter Harold said the delivery of the updated high-grade resource at Silver Swan, along with the Golden Swan resource released in October 2021, had achieved a number of important deliverables for Poseidon.

“Both resource updates have incorporated recent drilling from newly established drill cuddies in optimum positions,” he explained.

“The latest drill program at Silver Swan in particular, has minimised the uncertainties associated with the 2019 resource estimate. The 2019 estimate had included numerous drillholes which intersected the mineralised surface at very acute angles.”

Harold said the high-grade Golden Swan and Silver Swan resources would be important sources of feed for the Black Swan Fill the Mill strategy.

Poseidon is in the process of finalising the Black Swan disseminated resource update and the open pit and underground mining plans, which will form the basis for the Black Swan bankable feasibility study due for completion in September this year.

Meanwhile, the Black Swan disseminated resource update is on track for release later in the June quarter.

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.