The Poseidon Nickel Ltd (ASX: POS) share price is edging higher on Tuesday following the mining company's latest drilling results.
At the time of writing, Poseidon shares are swapping hands for 9 cents a pop, up 3.45%.
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What did Poseidon announce?
In a statement to the ASX, Poseidon advised it has intersected significant mineralisation at the Silver Swan project in Western Australia.
The company's infill drilling program completed 15 holes, logging massive nickel and copper sulphide deposits within the Tundra Mute Resource. As such, the recent holes drilled came back with the following visual estimates:
- 4.9 metres of massive and stringer sulphides (PTMD005)
- 4.2 metres of massive and stringer Ni (nickel) and Cu (copper) sulphides (PTMD007)
- 10.1 metres of massive and stringer Ni sulphides (PTMD014)
- 6.2 metres of massive and stringer Ni-Cu sulphides (PTMD015)
Poseidon noted that, while promising, it will need to wait for a laboratory analysis from the geological samples. This will determine the grade and widths for each of the drilling holes.
The aim of the drilling works is to convert Poseidon's existing Inferred Resources to Measured and Indicated (M&I) Resources.
The term Inferred Resources refers to quantity, grade (quality), and mineral content that is estimated with a low-level of confidence. On the other hand, M&I Resources is a reasonable to high-level of confidence based on enough samples being collected.
Poseidon managing director and CEO Peter Harold commented:
We are pleased to see some good hits within the Tundra Mute Resource. The aim of this program is to increase the confidence in the resource, by converting existing resources from Inferred to Indicated and to potentially find high-grade mineralisation outside the current resources. These latest holes should assist in increasing the amount of material in the Indicated Resource category.
We are also about to drill a couple of deeper EM holes and look forward to seeing whether the EM surveys detect any EM plates beyond the current extent of the know mineralisation.
Poseidon share price snapshot
It has been a rollercoaster ride for Poseidon shareholders lately. The company's shares reached a multi-year high of 16 cents in late July, before plummeting lower.
When looking at year-to-date, its shares are up 37% despite falling 10% in the past month.
On valuation grounds, Poseidon presides a market capitalisation of roughly $272 million, with over 3 billion shares outstanding.
