Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) has bolstered its indicated and inferred resource to 12,400 tonnes of nickel metal for the Silver Swan deposit within the Black Swan Project in Western Australia.
The deposit now hosts 130,000 tonnes of ore at 9.6% nickel, resulting in 12,400 tonnes of ore at a 4.5% nickel cut-off grade.
This brings the high-grade indicated mineral resource from both Golden Swan and Silver Swan deposits up to 250,000 tonnes at 7.10% nickel for 17,665 tonnes of nickel ore — a 75% increase in nickel metal from 2019.
The increase to the indicated resource means mineralisation at the nickel properties is at a confidence level that can be used in reserve calculations.
While that’s in the works, a disseminated resource for the Black Swan property is on track for release later this quarter.
Incorporating recent drilling
Independent resource consultant Snowden Optiro prepared the updated Silver Swan mineral resource.
It collated data from a recently completed 38-hole, 8,179-metre exploration and resource drilling program, which focused on four mineral leases - the Goose, Fledgling-Canard, Tundra-Mute and Peking Duck.
Posiedon Nickel managing director and CEO Peter Harold said: “The delivery of the updated high-grade resource at Silver Swan resource and the Golden Swan resource in October 2021 has taken a lot of effort and has achieved important deliverables for Poseidon.
“The latest drill program at Silver Swan, in particular, has minimised the uncertainties associated with the 2019 resource estimate.
“The 2019 estimate had included numerous drill holes which intersected the mineralised surface at very acute angles.
“The high-grade Golden Swan and Silver Swan Resources will be important sources of feed for the Black Swan Fill the Mill strategy.
“We look forward to finalising the updated Black Swan disseminated resource and then finalising the open pit and underground mining plans, which will form the basis on the Black Swan bankable feasibility study, due for completion in September this year.”
About Poseidon
Poseidon is a nickel sulphide exploration and development company with three projects within a 300-kilometre radius from Kalgoorlie in the Goldfields region of Western Australia.
Poseidon’s strategy is focused on the exploration and eventual restart of its established nickel operations in Western Australia.
A critical element of this strategy has been to acquire projects and operations with significant existing infrastructure, large nickel resources and geological prospectivity likely to lead to resource growth through the application of modern exploration techniques.
Poseidon owns the Windarra, Black Swan and the Lake Johnston nickel projects. Black Swan will be the first project to restart, followed by Lake Johnston and then Windarra, subject to favourable feasibility studies, appropriate project financing, the outlook for the nickel price remaining positive and all necessary approvals being obtained.
The company completed a definitive feasibility study on retreating the gold tailings at Windarra and Lancefield in July 2021 and is investigating potential partners to develop the project and monetise the asset.