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

This nickel company had a big announcement this morning…

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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%.

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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Motley Fool contributor Sebastian Bowen 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.

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