Poseidon Nickel (ASX: POS) ('Poseidon' or 'the Company') is pleased to report an updated Mineral Resource Estimate for the disseminated sulphide deposit at Black Swan.
Managing Director and CEO, Peter Harold, commented, 'Completion of the updated Black Swan Disseminated Resource and block model is an important milestone for the Company, underpinning the project operating model as we move towards the Final Investment Decision (FID). Black Swan has a 2.2Mtpa process plant and this resource upgrade is a key deliverable in our 'Fill the Mill' strategy to leverage off the existing infrastructure and large resource base at Black Swan. The Resource update incorporates the results from the recent 112-hole (10,845 metre) infill reverse circulation drill program undertaken between December 2022 and March 2023.
We are pleased the drilling and subsequent Resource update achieved a substantial 48% increase in the Black Swan disseminated Measured and Indicated Resources. The greater nickel inventory of 'higher confidence' mineral resources can now be considered in future ore reserves estimations. In addition, there is a much-improved understanding of the grade distribution within the metallurgically important serpentinite (low talc material) and talc-carbonate hosted ores below the existing Black Swan open pit. Understanding the distribution and metallurgical characteristics of these ore types is key to further de-risking the restart of Black Swan.
Overview
The latest MRE update was prepared for Poseidon by independent resource consultants WSP Australia Pty Limited (WSP), using all available assay data as of May 2023. The updated MRE now totals 26.3Mt @ 0.72% Ni for 189kt of nickel metal contained. The MRE replaces the previous Black Swan MRE completed by WSP in July 2022 (refer to Company announcement 'Black Swan Mineral Resource' dated 4 July 2022) which reported 28.9 Mt @ 0.63% Ni for 181kt of nickel metal contained. Both MREs exclude historical mine stockpiles of 1.6Mt @ 0.5% Ni for 7.8kt of nickel metal contained, which have not been updated at this time.
The JORC 2012 Checklist of Assessment and Reporting Criteria (Sections 1, 2 and 3) that accompany this announcement are contained in Appendix 1. Competent Persons for this updated 2023 MRE are Poseidon's in-house geology team for providing the validated drill hole database and lithological interpretation for the Black Swan deposit. WSP personnel were responsible for lithological modelling, mineralisation interpretation and modelling, estimation, reporting and classification of the MRE
New Data
The 2023 updated MRE incorporates 10,845 metres of new drilling from 112 Reverse Circulation (RC) drill holes completed by Poseidon between December 2022 and February 2023 from within the confines of the recently dewatered Black Swan open pit. The recent 112-hole drill program was specifically undertaken to increase the confidence in the Black Swan MRE through infilling the area extending approximately 125 metres immediately below the existing Black Swan open pit with the objectives to better delineate the metallurgically important serpentinite and talc-carbonate hosted resources in this area and to lift most of these resources into Measured and Indicated categories. Increased metallurgical categorisation confidence in the 2023 MRE was achieved by the addition of non-sulphide Ni assays and improved domain boundary confidence with the addition of semi-quantitative hyper spectrally estimated talc grades for all recent RC drill samples. Below this area, the MRE is based largely on the same historical drill hole data that was used in the previous 2014 and 2022 MREs
Geology and Geological Interpretation
The Black Swan Komatiite Complex (BSKC) is a 3.5km long by 0.6km thick arcuate lens of olivine cumulate and spinifex textured flows. The complex is enclosed by a broad sequence of proximal facies intermediate felsic lavas and associated volcanoclastic rocks situated on the NE dipping, NE facing limb of the Kanowna-Scotia anticline. The anticline is located in the upper greenschist - lower amphibolite facies of the Boorara Domain, one of six tectono-stratigraphic domains making up the Kalgoorlie Terrane. The complex evolved as a series of episodically emplaced komatiite flows. The flows were channelised within a dynamic, coevally erupting calc-alkaline submarine environment, which resulted in the formation of several large felsic bodies (extrusive and intrusive) at various levels within the complex. Early during its evolution, massive and disseminated nickel sulphides accumulated in favourable locations on and adjacent to the basal contact of the complex. Post emplacement serpentinization and talc-carbonate alteration, metamorphism and deformation, was moderate to extreme and was responsible for the destruction of primary igneous textures throughout much of the complex including low (massive sulphides) to moderate (disseminated sulphides) modification of the nickel sulphides. The host lithologies to the Black Swan disseminated sulphide deposit comprise a core area of serpentinite (dominantly as antigorite) enclosed by broad areas of talc magnesite and dolomite altered komatiites. The disseminated sulphides form between 2-10% of the host rock. They generally consist of composite grains of pyrite-millerite-magnetite+/-violarite in serpentinite areas with vaesite-polydymite becoming significant in the surrounding talc-carbonate altered rocks
Peter Harold Managing Director and CEO 7 June 2023 For further information contact Peter Harold: + 61 (0)8 6167 6600
About Poseidon Nickel Limited
Poseidon Nickel Limited (ASX Code: POS) is a nickel sulphide exploration and development company with three projects located within a radius of 300km from Kalgoorlie in the Goldfields region of Western Australia and a resource base of around 400,000 tonnes of nickel and 180,000 ounces of gold. Poseidon's strategy is focused on the exploration and eventual restart of its established nickel operations in Western Australia. A critical element of this strategy has been to acquire projects and operations with significant existing infrastructure, large nickel resources and geological prospectivity likely to lead to resource growth through the application of modern exploration techniques. Poseidon owns the Windarra, Black Swan and the Lake Johnston Nickel Projects. In addition to the mines and infrastructure including concentrators at Black Swan and Lake Johnston, these projects have significant exploration opportunities demonstrated by the discovery of the Golden Swan Resource at Black Swan and the Abi Rose mineralisation at Lake Johnston. Black Swan will be the first project to restart followed by Lake Johnston and then Windarra, subject to favourable Feasibility Studies, appropriate project financing structures being achieved, the outlook for the nickel price remaining positive and all necessary approvals being obtained. The Company has completed a Definitive Feasibility Study on retreating the gold tailings at Windarra and Lancefield and has entered into a Heads of Agreement with Green Gold Projects whereby Green Gold will develop the project and Poseidon can retain an 8% free carried interest, subject to certain conditions precedent being satisfied.
COMPETENT PERSON STATEMENTS:
The information in this report that relates to Exploration Targeting and Results is based on, and fairly represents, information compiled and reviewed by Mr John Hicks, who is an Independent Geological Consultant to Poseidon Nickel, and a Member of the Australasian Institute of Mining and Metallurgy and Ms Karyn Parker, who is an employee of Poseidon Nickel, and is a Member of The Australian Institute of Geoscientists. The information in this report which relates to the Black Swan Mineral Resource is based on, and fairly represents, information compiled by Mr Richard Gaze and Mr Drew Luck. Mr Gaze is Technical Director and full-time employee of WSP Australia Pty Limited based in Perth WA and is a Member of the Australasian Institute of Mining and Metallurgy. Mr Luck is a Senior Geologist and full-time employee of WSP Australia Pty Limited based in Brisbane QLD and is a Member of the Australasian Institute of Mining and Metallurgy. Ms Parker, and Messrs Hicks, Gaze and Luck have sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (the JORC Code 2012). Ms Parker and Messrs Hicks, Gaze and Luck consent to the inclusion in the report of the matters based on his information in the form and context in which it appears.
FORWARD LOOKING STATEMENTS:
This release contains certain forward looking statements including nickel production targets. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as 'may', 'will', 'except', 'intend', 'plan', 'estimate', 'anticipate',' continue', and 'guidance', or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production and expected costs. Indications of, and guidance on future earnings, cash flows, costs, financial position and performance are also forward looking statements. Forward looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change, without notice, as are statements about market and industry trends, which are based on interpretation of current market conditions. Forward looking statements are provided as a general guide only and should not be relied on as a guarantee of future performance. Forward looking statements may be affected by a range of variables that could cause actual results or trends to differ materially. These variations, if materially adverse, may affect the timing or the feasibility and potential development of the Black Swan Project
POSEIDON NICKEL LIMITED 
