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 miners helmets stand side by side with a large mound of earth and mining equipment behind them.

Image source: Getty Images

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.

Should you invest $1,000 in Poseidon right now?

Before you consider Poseidon, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Poseidon wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

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 woman wearing a gold top and carrying a gold bar gives the thumbs down signal as she leans against a wall with a sombre look on her face.
Gold

Here’s why the Ramelius (ASX:RMS) share price tumbled 8% to 4-month lows today

Key points The Ramelius share price sank 8% today Investors did not warm to the company’s quarterly results Gold production …

Read more »

A graphic image of three upward pointing arrows with smoke coming from their bottoms, indicating the arrows are taking off just like the Althea share price today
Resources Shares

Did this just cause the American Rare Earths (ASX:ARR) share price to surge 30% higher?

Key points American Rare Earths’ shares are rocketing higher today A letter to shareholders may have given its shares a …

Read more »

ASX miners crash opportunity broker buy asx shares represented by investor throwing hands up towards icons of buy and sell broker upgrade buy
Broker Notes

Time to sell? Macquarie just downgraded these 3 ASX shares from buys

Key points Macquarie comes out with a list of downgrades today The 3 ASX shares are all concentrated in resources …

Read more »

mining worker making excited fists and looking excited
Resources Shares

Is the BHP (ASX:BHP) share price a buy in all of this volatility?

Key points The BHP share price has been outperforming the ASX 200 in 2022 Iron ore continues to rally higher, …

Read more »

A man in a blue collared shirt sits at his desk doing a single fist pump as he watches his Neometals shares rising on his laptop
Resources Shares

Why is the BHP (ASX:BHP) share price leaping ahead today?

The S&P/ASX 200 Index (ASX: XJO) has unfortunately slipped into negative territory so far this Thursday, after an initially strong market …

Read more »

Man open mouthed looking shocked while holding betting slip
Broker Notes

Broker tips Fortescue (ASX:FMG) share price to sink 30% and warns of dividend cuts

The Fortescue Metals Group Limited (ASX: FMG) share price is pushing higher today after a rise in the iron ore …

Read more »

Business man marking Sell on board and underlining it
Broker Notes

Mineral Resources (ASX:MIN) share price falls 5% following brokerage downgrade

Key points The Mineral Resources share price is coming under more pressure after JPMorgan downgraded it to underweight or sell …

Read more »

Female worker sitting desk with head in hand and looking fed up
Resources Shares

Own Rio Tinto (ASX:RIO) shares? What options does the company have in response to the Serbian government’s decision

Key Points Rio Tinto shares withstand market pressure Management looking at legal options to overturn the Serbian Government’s decision Rio …

Read more »