Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF, FRA:NYG1) has delivered another round of positive drilling results within the Golden Swan trend at the highly promising Black Swan Project in Western Australia.
Further nickel sulphide intersections within the Golden Swan trend achieved include:
A 4.2-metre nickel sulphide interval comprising 0.8 metres of massive sulphides and 3.4 metres of matrix and stringer sulphides
A 5.1-metre sulphide interval comprising 3 metres of massive and matrix sulphides followed by 2.1 metres of stringer and coarse blebby sulphides
The latest Golden Swan assay results received include:
- 1.65 metres at 2.27% nickel and 0.45% copper; and
- 2.75 metres at 1.18% nickel, 4.75 metres at 1.18% and 8 metres at 1.35%.
Resource definition drilling continues
Poseidon managing director and CEO Peter Harold said the latest results continued to build an enticing picture of the Golden Swan trend.
“Drilling continues on the resource definition program at Golden Swan with what looks to be another high-grade intersection achieved, assays pending,” he said.
“Assay results continue to be received for the various intersections confirming the continuity of the mineralisation within the previously defined EM plates and also from intersections outside of the known mineralised envelope indicating the prospectivity of the Southern Terrace.
“We will continue to release drill hole data as it comes to hand, culminating in the maiden Golden Swan resource during the September 2021 quarter.”
The resource definition program started in late April and is designed to increase confidence in the continuity of the Golden Swan mineralisation to inferred and indicated levels by drilling up to 57 holes for 13,000 metres of NQ2 diamond drill core.
The Southern Terrace is a highly prospective stratigraphic position that could host further undiscovered massive sulphide bodies along its path, and it remains poorly tested.
An ongoing review of historical drilling is showing other mineralised intercepts that appear to be on the Southern Terrace contact and warrant following up as they suggest a larger extension of mineralisation.
At present, drilling continues to indicate a well-developed, competent felsic footwall unit that has resulted in high advance rates.
As of July 26, the program remains ahead of schedule with 57 holes completed and a further two in progress for a total of 15,544 metres drilled.
Good week for Poseidon
The latest results come in a hot week for Poseidon, whose shares rose to seven-year highs earlier in the week on the back of positive developments at its Black Swan and Windarra projects.
A definitive feasibility study (DFS) for the Windarra Gold Tailings Project, a precious metals asset in Western Australia’s Eastern Goldfields, outlined a robust project.
The nickel sulphide exploration and development company established a 150,000-gold-ounce ore reserve for the gold tailings asset, which sits within its broader Mt WIndarra Nickel Project.
Poseidon estimates Windarra could produce between 53,500 and 55,200 gold ounces over a 45-month lifespan if the company uses low-cost, low-risk tailings mining methods and a 1.5-million-tonne-per-annum processing facility.
Meanwhile also today, Poseidon released a positive scoping study on capital and operations expenditure for the Black Swan Project, revealing ore processing circuits can be refurbished at relatively low capital cost.