Poseidon claims new nickel discovery at Mt Windarra project

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THE DRILL SERGEANT: Poseidon Nickel (ASX: POS) received results from drilling currently underway at the company’s Mt Windarra nickel project in Western Australia.

The company is confident the latest intercepts should lead to further high-grade nickel zones being added to the current Mt Windarra resource.

The latest results were achieved by drilling at the expanded C Shoot and newly discovered area, which is adjacent to F Shoot.

 

C Shoot and F Zone geological setting. Source: Company announcement

 

Poseidon said the results provide additional high-grade mineralised zones to the Mt Windarra ore body.

Drilling results at C Shoot include:

–    10.44 metres at 2.22 per cent nickel from 413.31 metres, within 15.75 metres at 1.67 per cent nickel;

–    5.58m at 2.76 per cent nickel from 465.42m, within 10.86m at 2.05 per cent nickel;

–    9m at 2.88 per cent nickel from 393m, within 16.7m at 2.24 per cent nickel; and

–    10m at 2.66 per cent nickel from 393m, within 19.25m at 1.84 per cent nickel.

Further drilling is underway to determine the extent of the vertical depth of the new zones.

Poseidon is of the opinion the results demonstrate the Mt. Windarra mine upside with deposits of nickel near to existing infrastructure, which it said can be cheaply revealed with modern technology.

“Our discovery cost, prior to this campaign, has been circa 10 cents for every pound of nickel in resources and these drilling results should continue that cost trend,” Poseidon Nickel managing director David Singleton said in the company’s announcement to the Australian Securities Exchange.

“I’m particularly pleased with the uncovering of the new, apparently mineable mineralised zone adjacent to F Shoot.

“It demonstrates that the detailed insights that our geologists have acquired over the last five years of painstaking work is creating breakthroughs in nickel discovery.

“With these additional high grade zones, we will now move to upgrade both the mineral resources and ore reserves at Mt Windarra, and incorporate these upgrades into our finance model.”

Total Mineral Resources at Mt Windarra currently stand at 3.95 million tonnes at 1.73 per cent, for 68,300 tonnes of contained nickel.

The company anticipates upgrades incorporating these extensions into both the Resource and Reserve calculations are expected to be released in the near future.