Poseidon Nickel Limited (ASX: POS) – $0.110
29 Jan 2015
Poseidon Nickel Limited (ASX: POS) is working on a geological program at its newly acquired (November 2014) Lake Johnston Nickel Operation located approximately 540km east of Perth in Western Australia (Figure 1).
Figure 1. Location of Lake Johnston Nickel Operation
The company anticipates a major upgrade of the resource classification at Lake Johnston that will be completed within four weeks. The company expects a much higher proportion of the resources to be converted to the Indicated JORC category.
A review of the historical database identified that an additional 100 underground drillholes had been completed but were not included in the resource model. Face mapping into the geological model has revealed that a number of drillholes in the database have been incorrectly positioned due to survey errors which have now been corrected adding clarity and confidence to the new resource model.
The company has been recommissioning the concentrate processing facilities at Lake Johnston. These facilities include the Counter Current Decantation, Larox filter, Citect control system and a concentrate storage shed. These units have now been commissioned and will start to recover the stored concentrate into a saleable form.
Negotiations for nickel sulphide concentrate are underway and are likely to be concluded within the next three months.
For further information, visit www.poseidon-nickel.com.au
Resources Stocks to Watch (RSTW) is the leader in research on ASX micro to mid-cap mining stocks and commodities. We are independent and therefore not sponsored by the mining industry so we tell it like it is. Our research is written by experienced geologists and resources analysts, the experts in the field.