Poseidon Nickel (ASX:POS) has announced an updated resource estimate on the Maggie Hayes zone of its newly-acquired Lake Johnston nickel project in Western Australia. The total resource estimate now stands at 3.5 million tonnes of ore at an average grade of 1.49% nickel resulting in almost 115 million pounds of nickel.
80% of the nickel resource is now located in the indicated resource category which is a major improvement as this indicates an increased confidence in the location and grade of the ore zones. The focus will now be changed towards developing a mine plan for Maggie Hayes which could be reopened rather fast as it’s a past-producing mine with immediate access t ore zones.
Unfortunately the nickel price hasn’t really been cooperating lately as the price dropped below $6/lbs again in March but fortunately enough, Poseidon Nickel definitely benefits from the very weak Australian Dollar.
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Disclosure: The author holds a long position in Poseidon Nickel. Please see our disclaimer for current positions.
