Poseidon Nickel hopes Golden Swan could be another black swan event.
Everything old is new again, or at least that’s what shareholders in Poseidon Nickel are hoping.
The company is set to revisit past glories, which include ownership of the once-famous Mt Windarra mine, and the richer but lesser known Silver Swan nickel mine.
A business with strong US investment support, Poseidon’s primary focus today is the Golden Swan discovery adjacent to Silver Swan, about 50 kilometres north-east of Kalgoorlie.
Poseidon chief executive Peter Harold told delegates at the Diggers & Dealers forum in Kalgoorlie today he was confident that the company might be onto a new Silver Swan.
Rated as one of Australia’s richest nickel discoveries, Silver Swan was worked by a number of owners, including Russia’s nickel and palladium giant, Norilsk, until the Russians quit Australia in 2014.
Poseidon acquired Silver Swan as part of a broad-based asset accumulation program under which it also secured Mt Windarra, with the objective being to share in the rerating of nickel as a key metal in the production of batteries.
In WA’s original nickel boom of 1969 to 1971, shares in the original Poseidon traded to an Australian record of $250 each, before the business crashed into insolvency, reborn today under new management.
Mr Harold has a history that tracks WA’s nickel industry, serving most recently as chief executive of the Kimberley nickel producer Panoramic Resources.
Silver Swan, which was part of the wider Black Swan project, produced 136,000 tonnes of ore at an eye-catching 9.1 per cent nickel for 12,400t of nickel metal.
Mr Harold said the new discovery, Golden Swan, was showing early signs of similarities to Black Swan, including drill results up to 10.46 per cent nickel over nine metres and 8.82 per cent nickel over 7.55 metres.
To get a better look at Golden Swan, a drill position (or drive) is being established in the old Silver Swan workings about 200 metres from the new discovery.
The underground drill location is said to be the quickest and most cost-effective way of establishing whether Golden Swan has the potential to be a significant nickel discovery.
Investors are warming again to the Poseidon story, lifting the stock by 30 per cent to 7.1 cents, down slightly on a 12-month high of 7.5 cents reached earlier today.
