Meanwhile shares in Poseidon Nickel Ltd (the original 1960’s and 70’s hot nickel stock ) rose yesterday on news the explorer had discovered a new nickel supplied deposit called Cerberus at its Windarra nickel project in Western Australia, boosting the project’s resource base by 40%.
Poseidon shares rose half a cent to 30.5 cents on the news contained in a statement to the ASX.
The company is now controlled by Andrew "Twiggy" Forrest, of Minara (nee Anaconda) and now Fortescue Metals fame. He is chairman of Poseidon.
The company said in the statement that the total resource at the project in the indicated and inferred category of Australia’s mineral reporting code, (the JORC), stood at 88,369 tonnes of contained nickel metal with an average grade of 2.45%.
"The discovery is the first major JORC compliant resource identified on the historic Poseidon tenements since the 1970s and follows an intensive drilling programme conducted during 2008.
"Cerberus is closely located to Poseidon’s existing operations approximately 12 km south of the Mount Windarra nickel mine," the company said yesterday
The Poseidon nickel deposit, near Laverton in WA’s goldfields region, sparked Australia’s greatest speculative sharemarket rush in late 1969 when supply of the metal was tight.
"The nickel mineralisation at Denny Bore is shaping up as an extremely exciting discovery for the Company and Poseidon looks forward to being able to upgrade the Cerberus Inferred Resource to an Indicated Resource. Poseidon has previously announced JORC-compliant Indicated and Inferred resources of 63,100 tonnes contained nickel at Mt Windarra alone," Poseidon added.
Nickel prices have reached low levels in recent months as demand for stainless steel has fallen and the market has been flooded with more metal from near lateritic mines, such as BHP’s Ravensthorpe operation and higher output from Minara’s troubled operation, also in the WA goldfields.
