Shares of Poseidon Nickel Ltd [ASX:POS] have increased in value by 32% today, at time of writing. Shares are up from $0.025 on Monday, 23 March, to $0.033 after a trading halt.
Poseidon Nickel is an Australian nickel sulphide development and exploration company. They currently have three projects in the Goldfields region of Western Australia: The Windarra Nickel Project, the Black Swan Nickel Operations, and the Lake Johnston Nickel Operations. All three are 100% owned.
Why are Poseidon Nickel shares up today?
The company announced the discovery of a ‘new massive’ nickel sulphide intersection within the Black Swan channel, as you can see in the diagram below:
Source: Poseidon Nickel
This was the finding of the first hole in a drill program designed to test a recently identified electromagnetic anomaly.
The new discovery has been named Golden Swan. The intersection is located close to the top of the Golden Swan, which continues for about 150m lower.
Commenting on the discovery, Poseidon Nickel Managing Director/CEO Peter Harold said:
‘This is a very significant discovery in the context of Black Swan given 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, Neil Hutchison (Geological Consultant) and our geophysics consultants, Newexco.’
Poseidon Nickel’s second stage consists of a second wedge hole to test the lower portion of the conductor and to offer information for geophysical modelling.
What could happen next?
Markets have certainly liked the discovery, which has translated in a share price increase.
While plenty of ASX-listed companies have been suffering from the fallout of the coronavirus crisis, several explorers have seen gains, many of those involved with gold as the metal has become more appealing.
But while some gold explorers have benefited from higher gold prices, it’s not easy to know which ones will strike gold. It’s why The Rum Rebellion’s editor, Greg Canavan, has prepared a guide for you.
Check out Greg’s latest free report ‘How to Pick Winning Gold Stocks’ here.
For The Rum Rebellion