COMMODITY CAPERS: Poseidon Nickel (ASX: POS) has three nickel projects Windarra, Black Swan and Lake Johnston all within 300 kilometres of Kalgoorlie in Western Australia that currently host a combined Resource base of around 400,000 tonnes nickel and 180,000 gold.
Most recent activity has centred around the Black Swan project, which Poseidon acquired from Norilsk Nickel Australia in late 2014.
The project comprises the Silver Swan underground mine, the Black Swan open pit and the Black Swan 2.2 million tonnes per annum concentrator with 191,400 tonnes of nickel metal in resource.
A scoping study is currently underway looking at refurbishment and operation of the Black Swan processing plant, examining two processing capacities: the first 150,000 tonnes per annum for high-grade ores using the Silver Swan plant and second 1.1 million tonnes per annum for the lower grade ores using the Black Swan plant.
Poseidon commenced a Resource Definition drilling program at the Golden Swan prospect, within the Black Swan project in April designed to increase confidence in the continuity of the Golden Swan mineralisation to JORC 2012 Inferred and Indicated levels.
The most recent results from the drilling included:
9.8 metres at 4.95 per cent nickel, including 2.95m at 11.1 per cent nickel and 0.56 per cent copper from 216.2m, 0.95m at 14.9 per cent nickel from 216.8m and 0.4m at 15.8 per cent nickel from 217.75m;
18m at 2.74 per cent nickel from 221m, including 2.6m at 4.97 per cent nickel from 222.4m;
4.4m at 2.97 per cent nickel, including 1.8m at 5.48 per cent nickel from 171.6m;
9.1m at 3.79 per cent nickel, including 0.6m at 10.5 per cent nickel from 204.4m, 0.7m at 16.6 per cent nickel from 205m, 5.75m at 2.39 per cent nickel from 247.75m, and 3m at 3.3 per cent nickel from 272m, including 1m at 7.03 per cent nickel from 272.9m;
12.4m at 3.65 per cent nickel from 181.6m, including 6.4m at 5.8 per cent nickel from 181.6m, 0.5m at 16.7 per cent nickel from 181.6m, and 0.45m at 17.7 per cent nickel from 182.6m; and
4.45m at 5.86 per cent nickel from 187m, including 2.1m at 9.3 per cent nickel from 187m, including 0.9m at 15 per cent nickel.
Poseidon interpreted the high-grade results to have confirmed Golden Swan as a high-grade mineralised zone.
Once all the assay results are received, the company anticipates preparation of a maiden resource, hopefully sometime in the September 2021 quarter.
Funds received from a recent $22 million raising have been earmarked for further work at Black Swan and the company’s other projects.
Poseidon Nickel managing director and CEO Peter Harold said the placement supports the company’s continued strategy to build a high-grade nickel inventory at Black Swan and progress the project toward a potential recommencement of operations in 2022.
“The funds raised will be used to continue exploration activities at Golden Swan and across the Southern Terrace, undertake drilling to convert additional Silver Swan mineral resources to ore reserves and complete mining and production studies at Black Swan,” he said.
“Funds will also be allocated to reviewing the exploration potential of our Lake Johnston and Windarra nickel projects.”