Poseidon Nickel (ASX: POS) has achieved a 106% increase in the Silver Swan Ore Reserve Estimate following on from the increase in Mineral Resources announced in August 2019.
The company has also revealed that it will fast-track drilling on a large electromagnetic (EM) anomaly consistent with a massive sulphide EM response towards the base of the Black Swan mineralised sequence at depth below the open pit.
Interim CEO, David Riekie, said the company has confirmed both nickel and gold mineralisation in assay results from scout drilling at the Crazy Diamond prospect at the Windarra Project.
This healthy Silver Swan Reserve upgrade is an important and significant benefit from the ongoing de-risking and restart studies on and around Black Swan operations north of Kalgoorlie,” Mr Riekie said.
“The EM anomaly identified below the Black Swan open pit and previously mined Gosling deposit, 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 exciting prospect. The additional and ongoing successful exploration also extends to our Windarra tenements.”
The Ore Reserve estimate, prepared by Mining Consultants, Entech Pty Ltd is based on the mining methods, designs, schedules, cost estimates and modifying factors, which have been determined from a revision of the previous Silver Swan and Black Swan 2018 Feasibility Study.
Mr Riekie said the outcomes have been achieved as part of the ongoing de-risking and restart studies being undertaken for Black Swan.
The Ore Reserve economics are based on a processing recovery of 92.5% for nickel, commercial offtake terms and a nickel price of A$22,335/t. Copper and cobalt grades in concentrate do not reach assumed payable levels.
The existing Indicated Resources have been converted to Probable Ore Reserves subject to mining modifying factors.
All material has been assumed to be processed at the Black Swan processing plant located at the site, in conjunction with material mined from the Black Swan open pit and surface stockpiles.