Poseidon Nickel Ltd’s (ASX:POS) (OTCMKTS:PSDNF) (FRA:NYG) initial drilling results from Golden Swan discovery have demonstrated high-grade continuity with intersections up to 3.05 metres at 6.72% nickel within the wider Black Swan Project in Western Australia.
The Golden Swan mineralisation remains open in both plunge directions, as high priority drilling continues to test for both extensions and infill the known mineralised envelope.
DHEM platforms have now been established to help explore additional massive sulphide trends along the Southern Terrace that potentially parallels the Golden Swan Trend.
Indications are that Golden Swan mineralisation defined to date is not a unique occurrence and that other mineralised zones may exist within the Southern Terrace area.
“Very exciting time”
Managing director and CEO Peter Harold said: “This is a very exciting time for the company as we progress with the resource definition phase of the Golden Swan high-grade nickel sulphide discovery and in parallel embark on some generative programs to test the greater potential of the Southern Terrace to host more massive sulphide trends.
“Once the resource drilling is completed, we plan to announce a maiden resource and then a mining reserve, subject to the studies confirming acceptable economics.
“With the drilling progressing so quickly we should be able to complete the resource definition drilling ahead of schedule and then switch over to drill testing more of the very prospective Southern Terrace.”
Other notable results include 3.8 metres at 5.56% nickel, 7 metres at 3.92%, 1.2 metres at 5.14%, 4.1 metres at 3.95% and 17.4 metres at 3.16%, including 3.4 metres at 8.18%.
Golden Swan resource drilling program
The program kicked off on April 28 with the aim to increase confidence in the continuity of the Golden Swan mineralisation to JORC 2012 inferred and indicated levels by drilling up to 57 holes for 13,000 metres of NQ2 diamond drill core.
Once the initial inferred resource program is completed, the company will utilise the outer drill holes of the pattern to undertake further Down Hole Electromagnetic (DHEM) surveys to increase understanding within the Golden Swan trend and the greater area of the Southern Terrace away from the existing DHEM coverage.
Drilling to date has indicated a well-developed, competent felsic footwall unit that has allowed for high rate of drilling.
As of June 6, the program is progressing ahead of schedule with 24 holes completed for a total of 6,599 metres.
Assays have been received for seven holes.
Additionally, sulphide mineralisation has been intersected in two holes away from existing DHEM plates (PSGD011 and PSG012), confirming the continuation of the mineralised Golden Swan trend up plunge and to the south.
Drill targeting has been adjusted to test this observation with results and assays to follow.
Project timetable
Poseidon Nickel is confident the Golden Swan resource drilling will result in the delineation of a maiden resource that has the potential to be exploited in the near term.
With the completion of the underground drill drive, preparations are well underway for the potential commencement of mining activities in the first half of 2022 with an internal target of producing saleable ore by mid-2022, subject to acceptable economics.
An initial plan has been made to sell Direct Shipping Ore (DSO) and preliminary discussions with potential buyers remain ongoing.
The high nickel grade of Golden Swan, together with the excellent Fe:MgO ratio, low impurities and high metallurgical recovery (>90% to +13% nickel concentrate, based on preliminary metallurgical test work), will make Golden Swan material (ore and/or concentrate) highly attractive to a number of nickel producers both locally and overseas.