Poseidon Nickel (ASX:POS) - Managing Director & CEO, Peter Harold
Managing Director & CEO, Peter Harold
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  • Poseidon Nickel (POS) is targeting mid-April to commence drilling at the Golden Swan resource as part of its Black Swan Project in WA
  • The company recently reviewed its planned program at the site, resolving to extend the drill drive by 50 metres
  • The decision is aimed at reducing the amount of drilling in ultramafic rocks and providing a better drilling angle for the planned holes
  • It also means the end of the drive will be 50 metres closer to the mineralisation, which will reduce mine development time
  • Drilling at Golden Swan is expected to take around three months
  • Poseidon is targeting a financial investment decision by late 2021 with production at Golden Swan to commence next year
  • Meanwhile, exploration at Southern Terrace is targeting a zone about 120 metres below the original discovery hole at Golden Swan
  • Poseidon shares are up 1.61 per cent, trading at 6.3 cents each

Poseidon Nickel (POS) is targeting mid-April to commence drilling at the Golden Swan resource as part of its Black Swan Project in WA.

The nickel sulphide explorer recently reviewed its planned resource drilling program at the site, resolving to extend the drill drive by 50 metres.

Poseidon Nickel Managing Director and CEO Peter Harold said the decision is aimed at reducing the amount of drilling in in ultramafic rocks and will provide better drilling angles for the planned holes.

“This change also has the benefit of reducing the total drill metres of the resource drilling program by about 1800 metres, so the forecast time to complete the program is unchanged and the nest cost is almost neutral, with the additional drive development cost being offset by reduced drilling costs,” Peter commented.

“This is a lower risk strategy and demonstrates proactive planning by our in-house geology team, site-based personnel and our mining consultants,” he continued.

“In addition, the drill drive will also be 50 metres closer to the mineralisation, which will be beneficial by reducing time to production, assuming we decide to proceed with mine development.”

Drilling at Golden Swan is expected to take around three months using two diamond rigs. Poseidon is targeting a final investment decision for the project by late 2021.

“Our potential target is to be mining Golden Swan by mid-2022,” Peter added.

Southern Terrace exploration

Meanwhile, Poseidon recommenced exploration drilling at Black Swan’s Southern Terrace in late January from a drill position in the Silver Swan decline.

The miner is testing for additional mineralisation below the existing known high-grade nickel sulphide mineralisation at Golden Swan.

The current hole, PBSD033A, is targeting a zone about 120 metres below the original discovery hole at Golden Swan and is planned to go to a depth of 750 metres.

The hole is expected to be at target depth by early April with additional drilling planned once completed.

Poseidon Nickel shares are up 1.61 per cent on Thursday, trading at 6.3 cents at 11:34 am AEDT.

POS by the numbers
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