Hot stocks to watchLe Page’s two new hot picks for this week...

Hot stocks to watch

Le Page’s two new hot picks for this week have projects in a nickel fertile region of Western Australia.

His first pick, Poseidon Nickel (ASXOS), has been around for 12 years and is headed by Peter Harold, the former managing director of nickel producer Panoramic Resources (ASXAN).

“They’ve got just under 400,000 tonnes of contained nickel,” Le Page said.

“They’ve got Lake Johnston and Windarra, but probably more interesting in recent days have been the results they’ve got from Black Swan.

“It’s got a 2.2-million-tonne processing plant, around 16,000 tonnes of contained nickel at about 9.5 per cent, so very high grade.”

Poseidon announced this week it had hit high-grade massive sulphide mineralisation at its Golden Swan deposit, which sits adjacent to its Black Swan prospect.

“You’ve obviously got Silver Swan next door to it which was mined quite deep and is very high-grade,” Le Page said.

“You’ve got the disseminated body just to the north of it. But to the south is where they’ve been targeting this massive sulphide.”

The first hole drilled into Golden Swan in March this year returned a hit of 23m (13.3m true width) at 4 per cent nickel and 0.4 per cent copper, including 7m (4.3m true width) at 8.8 per cent nickel.

Le Page said that was a “phenomenal result”.

This week Poseidon reported a second hit of 9m (4.5m true width) at 10.46 per cent nickel, including 4.6m (2.3m true width) at 13.8 per cent nickel, on the basal contact.

“This looks like they could have a repeat of Silver Swan. So very bullish,” Le Page said.

“It’s got a market cap of about $120m. A pretty experienced team on board, so I think that’s definitely one to watch over the next six months and as we move into the recovery in base metals.”