Poseidon Nickel completes Golden Swan drill drive with resource definition drilling underway

Poseidon Nickel Ltd (ASX:POS) (OTCMKTS:PSDNF) (FRA:NYG) has completed the 465-metre Golden Swan drill drive at its Black Swan Project and started a 13,000-metre resource definition drilling program. Contractor WestAuz completed the drill drive development underground and this includes the establishment of two dedicated drill positions to facilitate resource definition drilling of the Golden Swan mineralisation. Commencing from the 450 level of the Silver Swan decline, the drill drive included 421 metres of drive development and 44 metres of stockpile development.  The 5.5 metres high by 5.2 metres wide dimensions of the drive and the ground support measures implemented (meshing and shotcrete) ensure that it is suitable to be used as a means of access for any future mining of the Golden Swan mineralisation. “Provides optimal drilling position” Poseidon managing director and CEO Peter Harold said: “As per the strategy announced in late 2020, we have now completed the dedicated drill drive which will provide an optimal drilling position to undertake resource drilling of the Golden Swan mineralisation at Black Swan. “Importantly, mining contractor WestAuz completed the project without incident and to a high standard.  “The drive can also be used for mining activities, assuming Golden Swan hosts a mineable orebody.”  Silver Swan infill drilling  WestAuz also performed rehabilitation works in the Silver Swan decline to support the planned Silver Swan infill drilling program which is designed to convert more of the current Silver Swan resource into reserve classification.  This drilling program is expected to begin later this year or in early 2022 and is expected to add more high-grade nickel tonnes to the Black Swan mining inventory.  Golden Swan Resource inferred drilling pattern and targets. Southern Terrace exploration  Drilling to test the down plunge extension of Golden Swan mineralisation was undertaken from the 335 Level off the Silver Swan Decline.  Hole PBSD033A passed just over the modelled Southern Terrace position, clipping the Southern Terrace felsic at its northern-most position and it was decided not to continue the hole to its planned depth due to adverse ground conditions. Going forward, drilling will be undertaken from the Golden Swan drill drive to further test the Southern Terrace down plunge from the modelled EM plates.  The Southern Terrace remains open and prospective for further high-grade nickel sulphide mineralisation and the new drill drive provides a favourable platform from which to further test this area.  Golden Swan resource drilling  The resource definition drilling program has started and is designed to increase confidence in the continuity of Golden Swan mineralisation to JORC 2012 inferred and indicated levels by drilling up to 57 holes for 13,000 metres of NQ2 core.  Harold said: “Webdrill has commenced the Golden Swan resource drilling program, which should take about three months to complete.  “This program will deliver us a maiden resource for the Golden Swan mineralisation and will allow us to test for any potential extensions to Golden Swan down plunge or along strike.  “In addition, the drill drive provides an ideal platform to drill test the highly prospective Southern Terrace.”  The program is scheduled to be completed in late July 2021 which should allow the reporting of the maiden resource for Golden Swan during the September quarter.  The company remains on track to exploit the high-grade/high-margin Golden Swan mineralisation in accordance with the proposed timetable. Looking forward The company is confident the Golden Swan resource drilling will result in the delineation of a maiden resource that will have sufficient tonnage to be exploited in the near term. Preparations are underway for mining activities to begin during the first half of 2022 with an internal target of producing saleable ore by mid-2022, subject to the board approving a final investment decision. Harold said: “From now on, shareholders can expect regular news flow as we report on the resource drilling activities, followed by the release of the maiden Golden Swan resource, and assuming things go to plan, a financial investment decision on the project by the end of this calendar year.  “That would likely put us in a position to be generating revenue by mid-2022.”  The initial plan being considered is to sell Direct Shipping Ore (DSO) to a third-party processor and preliminary discussions have commenced with potential buyers in Western Australia as well as international trading companies. The very high nickel grade of Golden Swan together with the Fe:MgO ratio, low impurities and high metallurgical recovery of >90% to +13% nickel concentrate will make Golden Swan material (ore and/or concentrate) attractive to a number of nickel producers locally and overseas.