Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) is encouraged by the latest batch of infill drilling assays from a program at its Silver Swan nickel camp in WA.
Here, the explorer doubled down on exploration at the Silver Swan Channel in the hopes of increasing the project’s high-grade resource and reserve base for its 'feed the mill' strategy.
During the campaign, Poseidon identified an area of continuous well-developed massive nickel sulphides within the Tundra-Mute inferred resource boundary and intersected as much as 15 metres at 17.92% nickel.
On the survey front, three untested, conductive, down-hole electromagnetic (EM) plates were recently identified in extensional positions to the existing Silver Swan high-grade resources.
Further EM surveys are scheduled to follow up these opportunities — and others in the field — while Poseidon’s high priority underground drilling programs continue at both Tundra Mute and below the Black Swan Open Pit from the Gosling Drill Drive.
Prospectivity of Silver Swan Channel
Speaking to the latest assays, Poseidon Nickel managing director and CEO Peter Harold said: “We are delighted that the recent Silver Swan drilling has returned a series of high-grade results which will most certainly add tonnes to the resource base at Tundra-Mute.
“While these results are very significant on their own, the fact that the downhole EM survey has returned strong EM conductors is a good indication that there is additional high-grade mineralisation in the vicinity of the existing know mineralisation.
“These are fantastic results and demonstrate the prospectivity of the Silver Swan Channel.”
Drilling at Tundra-Mute
Poseidon continues to turn the soil as part of its resource infill drilling program at the Tundra-Mute target, with 23 holes completed and two more in progress.
Some of the best results include:
- 12.9 metres at 10.63% nickel from 241.1 metres;
- 6 metres at 11.36% from 257 metres;
- 11 metres at 13.26% from 288 metres;
- 3.5 metres at 16.30% from 287.9 metres; and
- 15 metres at 17.92% from 265 metres.
Further nickel hits are:
Poseidon is waiting on results from three more holes at Tundra-Mute, while one hole returned no significant results.
Ten drill holes at the Silver Swan target have not yet been assayed.
Down-hole EM survey
In addition, eight drill holes were surveyed by Vortex Geophysics using an Atlantis down-hole EM (DHEM) probe between November 26 and December 6, with results interpreted by Newexco.
Promisingly, the survey highlighted seven plates (in purple below) with a conductance of more than 15,000 Siemens, which is considered highly conductive.
Within the Silver Swan setting, these readings are often indicative of the presence of massive sulphides.
When compared against drilling data, four of the plates can be explained using historical drilling and will not be tested further.
In relation to these untested plates the following information is relevant:
- PTMD022_EOH, a newly identified EM plate down plunge of the Silver Swan Mines, is more than 70 metres from any other drilling. Drilling stops quickly after passing the footwall contact due to ground conditions, limiting the full effectiveness of the platform EM hole;
- PTMD005_EOH is a relatively small plate with historical drilling surrounding it constraining its extent. Follow up drilling is being considered; and
- PTMD011_EOH is a small plate that is located on the lower edge of the TundraMute inferred shape. Other drilling intersecting the periphery of the plate were thin but mineralisation could potentially be better developed elsewhere in the plate. Follow up drilling is being considered.
Other DHEM survey work is planned for hole PTMD023, which is currently in progress.
Ultimately, the results of the DHEM survey will provide Poseidon with important additional information to correlate existing high-grade intersections and determine their potential extents.
The information will guide further drill testing in the area.