Poseidon Nickel (ASX:POS) share price booms 17% on 'exceptional' drilling results

This nickel company had a big announcement this morning…

Sebastian Bowen

Author Bio Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record. Areas of Expertise Dividend investing ETFs Education Bachelor of Political, Economic, and Social Sciences (Government and International Relations), University of Sydney Social Media X/Twitter Favorite Investment Quote "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." – Benjamin Graham

Published November 22, 2021 1:07 pm AEDT

It's been a nervous wait for owners of Poseidon Nickel Ltd (ASX: POS) shares. This ASX nickel miner has been in a trading halt since last Wednesday afternoon. The company put out a notice on Thursday stating that Poseidon would be placed in the halt "pending it releasing an announcement".

Well, today, we've found out what all the fuss is about. And, boy, have Poseidon Nickel shares returned with a vengeance. Poseidon is currently up by a healthy 11.7% at 10.5 cents a share. This came after Poseidon rose as high as 12 cents a share upon its return to the markets this morning. That was a bump of roughly 17%.

happy mining worker fortescue share price — Image source: Getty Images

Poseidon Nickel share price roars back to the markets

Poseidon released an ASX announcement this morning which has some potentially big implications for the company. The good news? Poseidon Nickel has uncovered a "exceptional intersection of massive sulphides at Silver Swan".

Yes, in an update for its Silver Swan drilling project, Poseidon has announced that the company has found a significant mineralised section at its Tundra-Mute zone at the Silver Swan project.

The company intersected "13.6m [metres] of massive Ni-Cu [Nickel Copper] sulphides visually logged". Its true width is estimated at 9.8 metres.

Here's some of what Poseidon managing director and CEO Peter Harold had to say on this news:

We are very pleased to have recorded a very wide intersection of 13.6 metres of massive sulphides within the Tundra Mute Resource in the Silver Swan channel. This is the best intersection so far in this drill program and is significant given that the average thickness of the Tundra Mute Inferred Resource was previously about 2 metres.

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 known resources.

While today's share price gains would be welcomed by investors, it still doesn't put Poseidon anywhere near the 52-week high of 16 cents a share we saw back in late July. Even so, Poseidon remains up a pleasing 57% in 2021 so far.

At this latest Poseidon Nickel share price, this company has a market capitalisation of approximately $314 million.

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