Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF, FRA:NYG1) has received further high-grade nickel results from a drilling program at the Golden Swan Prospect, putting it one step closer to a maiden resource.
A highlight result from the Golden Swan mineralised zone is 9.8 metres at 4.95% nickel, including 2.95 metres at 11.1% nickel and 0.56% copper from 216.2 metres; 0.95 metres at 14.9% nickel from 216.8 metres; and 0.4 metres at 15.8% nickel from 217.75 metres.
Golden Swan is part of Poseidon’s Black Swan project, one of three projects the company owns within a 300-kilometre radius of Kalgoorlie in the Goldfields region of Western Australia.
Resource definition drilling
Poseidon already has an overall resource base of around 400,000 tonnes of nickel and 180,000 ounces of gold and is confident that the maiden Golden Swan resource, which is expected later this quarter, will enhance this.
The Golden Swan resource definition drilling program started in late April 2021 and was designed to increase confidence in the continuity of the Golden Swan mineralisation to JORC 2012 inferred and indicated levels.
Drilling was completed in July ahead of schedule, with the company drilling 60 holes for a total of 15,968 metres.
Assay results have come in thick and fast since, with the latest results delivered just a week after POS reported its last set of positive results.
"High-grade mineralised zone"
“The Golden Swan Resource definition drilling program has been completed and assay results continue to be received with more high-grade intersections confirming that Golden Swan is a high-grade mineralised zone,” managing director and CEO, Peter Harold said.
“Once all the assay results are received, we will be able to prepare a maiden resource which we plan to release late in the September 2021 quarter.”
Other strong results include:
- 18 metres at 2.74% nickel from 221 metres, including 2.6 metres at 4.97% from 222.4 metres
- 4.4 metres at 2.97% nickel, including 1.8 metres at 5.48% from 171.6 metres;
- 9.1m at 3.79% nickel, including 0.6 metres at 10.5% from 204.4 metres, 0.7 metres at 16.6% from 205 metres, 5.75 metres at 2.39% from 247.75 metres and 3.0 metres at 3.3% from 272 metres, including 1-metres at 7.03% from 272.9 metres;
- 12.4 metres at 3.65% nickel from 181.6 metres, including 6.4 metres at 5.8% from 181.6 metres, 0.5 metres at 16.7% from 181.6 metres and 0.45 metres at 17.7% from 182.6 metres; and
- 4.45 metres at 5.86% nickel from 187 metres, including 2.1 metres at 9.3% nickel from 187 metres, which included 0.9 metres at 15.0%.
The assays are all from holes that fall within the mineralised envelope of Golden Swan and continue to add to the grade and thickness of the mineralisation.
Once POS has received all assays, it will hand over its database to Optiro Pty Ltd which will facilitate the modelling of the initial resource estimate.
Assays from approximately 18 holes are still pending, with results due in the next two to four weeks.
Southern Terrace drilling
Following drilling at Golden Swan, POS recommenced its drilling program on the Southern Terrace of the Black Swan project, where it is looking for more Golden Swan-style high-grade mineralised zones.
“In addition, we are looking to start the Silver Swan Reserve Upgrade drilling program in the near future which is designed to increase the high-grade nickel mining inventory at Black Swan,” Harold said.
The poorly tested Southern Terrace contact is an uneven thermally eroded surface that underlies a disseminated nickel sulphide mineralised horizon hosted within the Black Swan komatiite.
It boasts a highly prospective stratigraphic position and could host further undiscovered massive sulphide bodies along its path.
The Poseidon geological team is initially focusing up-plunge of Golden Swan where an ongoing review of historical drilling has located other mineralised intercepts that appear to be on the Southern Terrace contact and warrant following up exploration.
POS has undertaken an initial four-hole, 2,250-metre diamond drill program to test the up-plunge topography of the Southern Terrace.
The holes will be cased to allow for DHEM surveys to be conducted.
About POS
Poseidon is focused on the exploration and eventual restart of its established nickel operations in WA.
Project risk capital and operating costs are low in this region which has made it easy for POS to acquire projects and operations with high levels of geological prospectivity likely to lead to potential substantial extension of the operation’s life through the application of modern exploration techniques.
POS owns the Windarra, Black Swan and Lake Johnston nickel projects.