Poseidon (ASX:POS) share price lifts on 'some good hits'

The company has made some exciting progress…

| More on:
Two smiling men in high visibility vests and yellow hardhats stand side by side with a large mound of earth and mining equipment behind them smiling as the Carnaby Resources share price rises today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

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%.

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.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

A man wearing a hard hat and high visibility vest looks out over a vast plain.
Resources Shares

Did BHP, Rio Tinto, or Fortescue shares deliver the best returns in FY25?

Many Australians are invested in this mega mining trio. How were the returns in FY25?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Resources Shares

If I'd put $1k in this ASX mining stock 3 years ago, I'd now have $120,000

Not a bad return!

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain.
Resources Shares

Can a new leadership team turn Mineral Resources around?

Down 50% in a year, is the Mineral Resources share price primed for recovery?

Read more »

Female miner in hard hat and safety vest on laptop with mining drill in background.
Resources Shares

Up 29% in a year, are Lynas shares still a good buy today?

A leading expert delivers his verdict on the outlook for Lynas shares.

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

BHP share price tumbles amid $66 million legal hit

ASX investors are bidding down the BHP share price today. Here’s what’s happening.

Read more »

Three miners looking at a tablet.
Resources Shares

Here's the BHP dividend forecast from top analysts through to 2029

How big could the dividends be in the coming years?

Read more »

Female miner smiling in front of a mining vehicle as the Pilbara Minerals share price rises
Resources Shares

Forget BHP and CBA shares and buy these 4 promising ASX All Ords stocks instead

A leading fund manager expects these quality ASX All Ords stocks will outperform CBA and BHP into 2026.

Read more »

Man pointing at a blue rising share price graph.
Resources Shares

Up 275% in a year, why this ASX All Ords mining stock could keep racing higher into 2026

A leading fund manager forecasts more outperformance to come for this rocketing ASX All Ords miner. But why?

Read more »