The Poseidon Nickel Ltd (ASX: POS) share price is soaring on Monday following the mining company's latest drilling assay results.
At the time of writing, the nickel miner's shares are swapping hands for 9.9 cents a pop, up 8.79%.
What did Poseidon announce?
In today's statement, Poseidon advised that its latest infill drilling assay results have identified high-grade intersections at the Silver Swan project.
The company's infill drilling program completed 23 holes, logging well-developed massive nickel sulphides deposits within the Tundra Mute Resource. The recent holes drilled came back with the following results:
- 12.9 metres at 10.63% of nickel (Ni) from a depth of 241.1 metres (PTMD005)
- 6 metres at 11.36% Ni from a depth of 257 metres (PTMD007)
- 11 metres at 13.26% Ni from a depth of 288 metres (PTMD014)
- 3.5 metres at 16.30% Ni from a depth of 287.9 metres (PTMD015)
- 15 metres at 17.92% Ni from a depth of 265 metres (PTMD018)
Poseidon noted that a downhole electromagnetic survey discovered seven plates that are considered highly conductive. These readings often suggest the presence of massive sulphides which are located within the area of known existing mineralisation intersections.
While the results are positive, the company will conduct further electromagnetic surveys in the near future. The information will guide additional drill testing in the area.
Poseidon Nickel managing director and CEO, Peter Harold commented:
We are delighted that the recent Silver Swan drilling has returned a series of high-grade results which will most certainly add tonnes to the resource base at Tundra- Mute.
While these results are very significant on their own, the fact that the down hole EM survey has returned strong EM conductors is a good indication that there is additional high-grade mineralisation in the vicinity of the existing know mineralisation.
These are fantastic results and demonstrate the perspectivity of the Silver Swan Channel.
About the Poseidon share price
Over the past 12 months, Poseidon shares have rallied almost 40% higher, reflecting positive investor sentiment. Since the start of 2021, the company's share price is up around 50% alone.
On valuation grounds, Poseidon presides a market capitalisation of roughly $300.27 million, with more than 3.06 billion shares outstanding.
