Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) has passed a key milestone by completing an updated Black Swan disseminated resource and block model, further de-risking the Western Australian nickel mine towards a restart.
The updated Black Swan disseminated mineral resource estimate (MRE) delivered 26.3 million tonnes at 0.72% nickel for 189,000 tonnes of contained nickel.
Notably, this is a 48% increase in contained nickel in the measured and indicated mineral resource categories to 16 million tonnes at 0.73% nickel for 118,000 tonnes.
What’s more, the MRE provides increased confidence in the nickel grade distribution and the metallurgical characterisation of the mine, providing consistency and improved certainty of concentrate specifications.
Comparison between 2023 MRE and 2022 MRE.
Important milestone
Poseidon managing director and CEO Peter Harold said: “Completion of the updated Black Swan disseminated resource and block model is an important milestone for the company, underpinning the project operating model as we move towards the Final Investment Decision (FID).
“Black Swan has a 2.2 million tonnes per annum process plant and this resource upgrade is a key deliverable in our 'Fill the Mill' strategy to leverage off the existing infrastructure and large resource base at Black Swan.
“The resource update incorporates the results from the recent 112-hole (10,845 metres) infill reverse circulation drill program undertaken between December 2022 and March 2023.
“We are pleased the drilling and subsequent resource update achieved a substantial 48% increase in the Black Swan disseminated measured and indicated resources.”
Improved confidence
The recently completed 112-hole reverse circulation (RC) drill program at Black Swan has significantly improved the confidence of the 2023 MRE through a substantial 48% increase in the tonnage and grade of the indicated resource generated by the increased drill density.
These increases resulted from the conversion of previously classified inferred mineral resources.
Overall, the changes in 2023 with additional drilling, improved geological interpretation and domaining have reduced the overall MRE tonnage by 9% but have increased the nickel grade by 14% and contained metal by 4%.
Harold adds: “The greater nickel inventory of “higher confidence” mineral resources can now be considered in future ore reserves estimations.
"In addition, there is a much-improved understanding of the grade distribution within the metallurgically important serpentinite (low talc material) and talc-carbonate hosted ores below the existing Black Swan open pit.
“Understanding the distribution and metallurgical characteristics of these ore types is key to further de-risking the restart of Black Swan.”