Poseidon Nickel (ASX: POS) has emerged from a trading suspension this morning with news it has unearthed a new nickel sulphide lode within the Black Swan channel.
Assays for the 19.5m (11.5m true width) highly mineralised komatiite intersection have now been prioritised.
The new discovery has been named Golden Swan and included 1m of massive nickel sulphides.
Recently appointed managing director and chief executive officer Peter Harold said the discovery was “very significant”.
“It is only the second time significant massive sulphides have been intersected within the Black Swan disseminated channel since the discovery of the Gosling lode in 1996.”
“This major achievement is a testament to the efforts of our geological team and particularly our chief geologist Steve Warriner, [along with geological consultant] Neil Hutchison and our geophysics consultants Newexco.”
He added the company was looking forward to watching how the discovery unfolds.
The Golden Swan discovery was the first hole of a drilling program that was designed to test a recently identified electromagnetic anomaly.
Poseidon noted, the anomaly was also located in a similar stratigraphic location to the Gosling massive sulphide orebody, which produced 121,417 tonnes of ore at 4.4% nickel.
Additionally, today’s reported intersection was located near the very top of the Golden Swan anomaly which extends a further 150m below and remains untested.
The next stage of exploring Golden Swan will involve a second wedge hole to test the lower portion of the conductor and gain information on the mineralisation’s continuity and dip for further geophysical modelling.
Earlier this year, Poseidon revealed a 106% increase to the high grade underground Silver Swan nickel reserve.
The reserve now totals 130,000t at 5.2% nickel for 6,800t of contained nickel metal. It is an update from the previous reserve estimate of 60,000t at 3.3% nickel for 70,000t of contained metal.
Investors reacted positively to Poseidon’s discovery, with the company’s share price rocketing 40% after market open to $0.035.