Poseidon Nickel Ltd (ASX: POS) shares have surged 40.63% in today's trade to 4.5 cents at the time of writing. The rising Poseidon share price came after the company announced a positive intersection at its Golden Swan deposit.
What was in the announcement?
According to the announcement, the company intersected 9 metres of massive nickel sulphides at its Golden Swan deposit. The assays from the result are pending. The intersection is around 50 metres away from another recent discovery hole which previously intersected 7.6 metres at 8.8% nickel.
Poseidon stated that the massive nickel sulphides sit on a highly prospective felsic terrace, which refers to a terrace of a particular volcanic rock, that could parallel the nearby Silver Swan underground mine. Drilling is set to continue.
Poseidon Nickel's Managing Director and CEO, Peter Harold, commented on the result, stating;
"This latest intersection has been worth waiting for after operational delays caused by COVID and then the completion of the important Downhole Electromagnetic (DHEM) platform hole below Golden Swan slowed progress. The recently completed drill hole confirms the nickel sulphide nature of the EM responses measured to date and we are looking forward to receiving the assays. With the installation of the underground loop nearing completion we hope to highlight further potential around the current Golden Swan intersections as our geological understanding of this area improves."
About the Poseidon share price
Poseidon is a nickel producer and explorer with operations in Australia. The company currently has three projects in operation within 300km of Kalgoorlie, Western Australia.
In its quarterly report to 30 June 2020, the company announced that it had discovered 4% nickel over 23.1 metres at its Golden Swan deposit. This included a high grade component of 2.1 metres that averaged 15.9% nickel.
The company had cash at the end of the June quarter of $45,224,000 compared to $48,581,000 at the end of the previous quarter.
Poseidon Nickel released a business update in June which stated the company had combined nickel resources of 395,530 tonnes and 180,000 ounces of gold.
The Poseidon share price is up 80% from its 52 week low of 2.5 cents and 12.5% since the beginning of the year after today's rise. The Poseidon share price is also 12.5% up since this time last year.
