Hi POSters.There has been some negative chatter about the...

Hi POSters.

There has been some negative chatter about the quantum of POS’ nickel assets, some of which I think, is a touch misguided.

Firstly, it would hardly be fair to classify Poseidon as just another explorer hopeful, given the fact that actual mining has been successfully (??) undertaken at all 3 projects, albeit, quite some time ago. It has been the nickel price of course that has torpedoed it in the past, not a lack of resources. That removes a hell of a lot of the speculative nature ordinarily applied to a would-be mining venture.

It is also the case that the quality ground at Lake Johnston would be a headline act for any other company, with plenty of exploration targets at excellent grades but it tends to be relegated by the exceptional Black Swan dirt. Speaking of which, just look at one of their recent core samples and if that doesn’t leave you with a damp spot on your trousers then you must be an alien life form.

I would love to be a geo with Poseidon – for someone with zero geo credentials, I reckon I could fake it till I made it. “No worries boss, here is my drilling plan”. Have a look at the model, bung in a few new holes within the mapped boundaries and bingo - more high-grade hits! Bung in a few holes outside of the existing boundaries, nothing in the core sample but we confirm the width - another great result. Bung in a few speculative holes to see if we can expand the strike zone and… a few misses and then a couple of more high-grade hits, increasing the resource. “Here is your bonus Mr. Geo, now don’t spend it all at the Casino”. How easy is this? Living the dream!

To be blunt, proving up the resource from Inferred to Indicated and Measured will be relatively easy in our situation and it is well advanced already. We know now exactly where there is a heap of high-grade nickel ready to be mined. Once the plant is refurbished, press the go button and start making money!

Alex J – sorry mate, just saw your comment re my spreadsheet from a previous post. My apologies, I won’t post my spreadsheet for fear of way too much sniping, and I am a sensitive soul. However, there are a gazillion ways of estimating future company value, pre-production, but I think I can say I have used fairly conservative parameters as published. In my cut down version, using the 395k resource figure, I discounted total mine production by 50%, which I think is again quite conservative as it assumes no resource expansion, whereas the drilling programs underway are undoubtedly going to change the numbers for the better.

Stay the course true believers, we are in for an exciting ride on the POS rocket.

Of course, DYOR and don’t take my musings as advice.
Cheers U