UPDATE 1.20pm: Shares in Poseidon Nickel were higher after the company announced high grade nickel intersections from recent drilling at its Lake Johnston project 117km west of Norseman.
The company reported a 10.48m-wide intersection grading 3.2 per cent nickel including 5.72m at 4.66 per cent and 1.29m at 10.22 per cent nickel at Emily Ann North.
The intersection is 360m north from the existing flooded decline in the Emily Ann underground mine, which produced 46,000 tonnes of nickel under previous owner Norilsk Nickel.
Poseidon’s general manager of geology, Neil Hutchison, said he had not seen intersections of such quality, grade and thickness since his time at Cosmos (a nickel project previously owned by Jubilee Mines, where Mr Hutchison previously worked).
“This is an impressive intersection and is the culmination of considerable high-quality scientific work between our geology team and Newexco,” he said.
“It opens up many opportunities around the historical Emily Ann Mine and will hopefully lead to the discovery of an economic deposit.”
Poseidon picked up Lake Johnston from Norilsk for about $1 million in 2014.
Poseidon, in which mining magnate Andrew Forrest holds a 17 per cent stake, also controls the mothballed Black Swan, Silver Swan and Mt Windarra mines in the Goldfields.
Shares in Poseidon were up 0.2 cents, or 4.88 per cent, to 3.6 cents at the close after trading as high as 4.3 cents earlier in the day.
regards timmo
MPJ Price at posting:
0.4¢ Sentiment: None Disclosure: Held
