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Poseidon Nickel Ltd

Poseidon Nickel shares up 11% on strong nickel hits at Silver Swan

Drilling has intersected very high-grade nickel, including 7.48 metres at 10.89% nickel.

hedge in a pot plant trimmed into the shape of an upwards arrow
Poseidon has three key nickel assets – Black Swan, Lake Johnston and Windarra

Poseidon Nickel Ltd (ASX:POS) has received assay results from the first three holes drilled at the Silver Swan nickel deposit at the Black Swan Mine near Kalgoorlie in Western Australia.

Intersections include 5.9 metres at 9.92% nickel, 7.48 metres at 10.89% nickel and 13 metres at 5.64% nickel.

The 3,000-metre drilling program continues and is expected to be completed over the next five weeks with assays to follow.

The plan to re-open the Black Swan Mine with a resource expansion drill program is well timed with nickel trading at US$5.60 per pound, well off its February 2016 low of US$3.50.

Results exceeded expectations

Poseidon’s managing director Rob Dennis said: “We are extremely excited with the Silver Swan results. By any measure the results have exceeded our expectations with the results at Silver Swan demonstrating some superior nickel grade and solid true width intersections.

“The two pronged approach we have adopted has been designed to test the potential and extension of ore sources at both Black Swan and Silver Swan.

“Combined, these drilling programs have yielded some extremely positive outcomes by virtue of grade width and scale and have prompted us to reassess and accelerate our future drilling programs."

Drilling to move to Silver Swan deposit

The company is well funded in a difficult capital market with cash and equivalents of $63.5 million at March 31, 2019.

Poseidon is also well located in WA's Goldfields region with three operational projects within a 300 kilometre radius of Kalgoorlie.

Dennis said: “We will complete the drilling at the high-grade Silver Swan deposit in the next few weeks. Our focus, will then be to build on the potential of the Black Swan disseminated ore body above the Gosling deposit which will complement the Silver Swan higher grade success.

“From the outset, our objective has been to develop and improve resource potential in proximity to our processing facilities at Black Swan.

“We consider that the existing processing capabilities at Black Swan and extremely positive drilling results puts us in a unique position in this nickel province.”

Poseidon Nickel has attracted the attention of Andrew 'Twiggy' Forrest's Squadron Resources, which holds a 17.1% stake. 

Shares traded as high as 3.9 cents on Monday, which was up 11.4% on the previous close.

Quick facts: Poseidon Nickel Ltd

Price: $0.05

Market: ASX
Market Cap: $137.42 m
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