The Poseidon Nickel Ltd (ASX: POS) share price leapt into the green this morning after the mineral explorer shared an update on its Golden Swan drill program.
At the time of writing, the Poseidon share price is up 6%, trading at 12.2 cents, after shooting up almost 9% higher for most of the morning trade.
Poseidon Nickel is a nickel miner in Western Australia, with flagship operations including the Lake Johnstone, Mt Windarra and BlackSwan projects.
Let's uncover what the update means for investors.
More results for Golden Swan
In today's release, Poseidon announced that it had achieved more high-grade assays for Golden Swan. The results are from an additional 9 holes of drilling, all within the "mineralised envelope" of the discovery.
Poseidon designed the Golden Swan drilling program to "increase confidence in the continuity" of its Golden Swan mineralisation discovery. It started in April 2021 and has drilled a total of 60 holes for a depth of 15,968 metres.
The company advised that the assays "continue to add to the grade and thickness of the mineralisation". In addition, the return from all 60 drill hole assays was ongoing.
Poseidon expects the initial resource estimate by the end of September, with more assays to be announced as they became available.
What did management say?
Commenting on the update, Poseidon CEO Peter Harold said:
The Golden Swan Resource definition drilling program has been completed and assay results continue to be received. The latest batch of assays has some good widths and grades, including some very high-grade intervals which will bulk up the tonnes in the mineralised zone.
Once all the assay results are received, we will be able to prepare a maiden resource which we plan to release late in the September 2021 quarter.
Harold also advised that the company would launch the Silver Swan reserve upgrade drill program in late August. This program is designed to "increase high-grade nickel inventory" at Poseidon's Black Swan site.
Poseidon Nickel share price snapshot
The Poseidon Nickel share price has climbed 92% into the green over the year to date, extending the previous 12 month's gain of 184%.
Moreover, over the past month alone, Poseidon shares have lifted a further 19% into the money.
These results have outpaced the S&P/ASX 200 Index (ASX: XJO)'s return of around 25% over the past year.
Poseidon has a market capitalisation of $360 million at the time of writing.
