The Western Areas Ltd (ASX: WSA) share price has bounced back from yesterday's sell-off with a 2% gain to $1.96 in morning trade.
Today's gain limits the nickel producer's year-to-date decline to approximately 36%.
Its shares climbed higher today following an announcement that it has trebled the defined high grade massive sulphide mineral resource at its Cosmos Odysseus Project.
According to the release, the total Odysseus mineral resource estimate now stands at 7.9Mt at 2.5% Ni for 199,174 nickel tonnes at a cut-off of 1.5% Ni.
Management has stated that the amount of massive sulphides included from limited drilling and the increase in total nickel tonnes was beyond expectations when it acquired the asset.
Despite the positive news, a subdued outlook for nickel prices continues to weigh heavily on its shares. Western Areas is one of the most shorted shares on the Australian share market with short interest of 16.7%.
