Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) has received positive assay results from aircore drilling at Maggie Hays West within its Lake Johnston Nickel Project, confirming the existence of a strong 1-kilometre nickel-copper-platinum group elements (PGE) anomaly at the target.
Drilling of 17 aircore holes for a total of 807 metres in October returned a best nickel intercept of 1 metre at 2.37% nickel, 347 parts per million (ppm) copper and 249 parts per billion (ppb) platinum and palladium (Pt+Pd) within a 36-metre intercept of 0.99% nickel in hole PLJA176.
Drill hole PLJA177 was another standout intercept, returning 21 metres at 1.13% nickel, 374 ppm copper, 136 ppb PGE, with intervals grading up to 2.16% nickel, 425 ppm copper and 207 ppb Pt+Pd.
Exploration continues
POS intends to carry out further drilling at Maggie Hays West next year to progress what it has described as a compelling and exciting target.
“The company continues to advance its exploration activities on several fronts,” POS chief executive officer Craig Jones said.
“At Lake Johnston, the nickel exploration activities have been focused along the highly prospective Western Ultramafic Unit, with results returning elevated nickel and platinum group metals that support the existence of the extensive Maggie Hays West anomaly and potentially points towards a mineralised channel.”
Lithium review
Separately, recent soil sampling targeting the southern area of the Western Ultramafic Unit (WUU) has returned anomalous lithium values of more than 100 ppm over a strike length of 3 kilometres with corresponding rubidium and caesium anomalism.
These lithium readings, similar to those recently reported by other companies within the Lake Johnston region, warrant a ramp-up in search activities in 2024.
Initially, the company will conduct field checks, resample existing cores and verify existing soil anomalies, followed by the mapping and rock-chip sampling of known pegmatite outcrops, including significantly extending soil sampling coverage over areas of in-situ residual soils.
Expert appointments
POS has appointed a consultant with significant lithium expertise to assist with target selection at Lake Johnston as well as a specialist consultant to complete a belt-scale review of exploration opportunities at the Windarra Gold Tailings Project.
At the latter, POS recently completed metallurgical test-work to assess the potential of Draslovka’s Glycine Leaching Technology to improve gold recoveries for the tailings retreatment project.
The outcome has been positive but additional test-work will be required to assess if it can deliver improved economics for the project.
As well, the company is validating historical data to generate quality targets for future low-cost work programs that can be incorporated into next year’s exploration activities.
Favourable Aussie dollar gold price
Since a definitive feasibility study (DFS) was published for the Windarra Project, the Australian dollar gold price has improved significantly from A$2,333 per ounce in the DFS to about A$3,000 today, a 30% improvement that works in favour of the company in discussions with interested partners for the project.
“Following on from the recent exploration targeting review of Windarra, a project-scale target identification program is underway along sections of the 24-kilometre of strike of the basal contact, targeting additional opportunities for low-cost exploration activities,” Jones said.
“The initial focus is along a 7-kilometre section to the south of the historical Mt Windarra mine.”