Why is the Poseidon Nickel (ASX:POS) share price hitting stormy seas today?

It's been a big week for Poseidon Nickel. Here's the latest news from the company.

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The Poseidon Nickel Ltd (ASX: POS) share price is riding waves on Tuesday after the company released an update on the restart of its Black Swan Project.

It follows yesterday's news detailing positive assay results from the project's Silver Swan Channel. Those results spurred the company's stock to surge 8.7% to close at 10 cents on Monday.

Today, the Poseidon Nickel share price has been wobbling. It reached as high as 10.5 cents and as low as 9.9 cents during intraday trade.

Right now, it's flat with its previous close.

Let's take a look at today's news from the nickel explorer and developer.

Poseidon Nickel share price wobbles on Black Swan update

The Poseidon Nickel share price is on the move on Tuesday after the company's managing director and CEO, Peter Harold noted that drilling programs at the Black Swan Project continue to show positive results.

Harold stated that the results show the potential for an increase in the mining inventory for the restart.

So far, drilling has flagged the potential for more consistent metallurgically favourable serpentinite mineralisation in a disseminated zone below the existing pit.

Additionally, knowledge of the project's resources helps to build an understanding of its mineralogy and metallurgy, thereby allowing the company to refine its ore blending strategy.

The 'Feed the Mill' strategy employed by Poseidon Nickel to restart the project is also continuing nicely.

The strategy is based on feeding the 1.1 million tonnes per annum processing circuit from a combination of feed sources to maximise nickel units produced.

The company has now approved studies on dewatering the Black Swan open pit – set to begin in 2022. It has also given the okay to work on getting environmental and mine approvals.

On top of that, it's started looking into hiring project management leaders, getting approvals for site-based accommodation, and grid power allocation.

After the company finishes the current drilling programs at the project's Silver Swan Channel and BSD, and receives assay results, updated mine studies, and indicative offtake terms, a further internal Preliminary Economic Assessment will be completed.

Poseidon Nickel expects to make a final investment decision on the project's restart in July 2022. After that, commissioning is scheduled for the first quarter of 2023. That will lead to the Bankable Feasibility Study, due in June 2022.

No doubt, many eyes will be on the Poseidon Nickel share price then. Right now, the company's stock is 42% higher than it was at the start of 2021.

Motley Fool contributor Brooke Cooper 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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