PERTH (miningweekly.com) – The share price of junior Poseidon Nickel increased by more than 9% on Tuesday, after the company reported a doubling of the nickel reserve at its Silver Swan operation, in Western Australia.
The Silver Swan project is now estimated to host 130 000 t of contained nickel metal, at 5.2% nickel for 6 800 t of nickel, a 106% increase on the previous estimate.
“This healthy Silver Swan reserve upgrade is an important and significant benefit from the ongoing derisking and restart studies on and around Black Swan operations north of Kalgoorlie,” said Poseidon interim CEO David Riekie.
“The electromagnetic anomaly identified below the Black Swan openpit and previously mined Gosling deposits, offers some very exciting potential and is a focal point for a priority drilling programme.
“Collectively, these outcomes are important additions that are building on the certainties created from previous successful drilling, to allow reserve status and upgrade, as well as highlighting potential within previously untested zones.
“The proximity and location of the anomaly is an exiting prospect,” Riekie said, adding that the additional and ongoing successful exploration also extended to the Windarra tenements.
Poseidon shares were trading at a high of 3.7c a share on Tuesday, up from a low of 3.4c each.