Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) continues to demonstrate the greenfields potential of its Windarra, Lake Johnston and Black Swan projects in Western Australia outside of their nickel resources with ongoing exploration highlighting gold prospectivity.
Poseidon Nickel CEO Brendan Shalders explained, “Continuing with our strategy to assess the greenfields potential for multiple commodities (nickel-lithium-gold) across our project portfolio, we have identified exciting prospective gold targets at all three of Poseidon’s projects.
“Given our significant infrastructure assets are strategically located within well-established mining regions any exploration success is highly leveraged for production, either at one of our sites or at proximal processing facilities."
Windarra: rock chip samples
Rock chip samples taken from established gold in soil anomalies have returned up to 0.37 g/t gold and 12.9 g/t silver. These results support the interpretation that Windarra contains strike extensions to the main mineralised gold trend which controls nearby gold camps.
“We recently announced gold in soil anomalies at Windarra discovered by soil sampling from a program completed in 2010 for which gold assay results were not reported," said Shalders.
"Following on from this announcement, rock chip samples from recent site visits have returned results up to 0.37 g/t and 0.22 g/t gold within the reported soil anomalies.
"Results support the interpretation that Windarra contains the strike extensions along a main mineralised gold trend which controls nearby gold camps.”
Lake Johnston: large anomaly defined
A large coherent 1.2 kilometres by 0.9-kilometre gold in soil anomaly (peak value 146 ppb gold) defined at Billy Ray remains open and untested by drilling. The soil anomaly lies above the intersections of an interpreted 3-kilometre intrusive body, NNE trending structures and dolerite dykes.
“At Lake Johnston, a large coherent gold anomaly at the Billy Ray prospect has also been confirmed," the CEO said.
"Gold exploration has been sporadic at Lake Johnston in the past with several gold-in-soil targets previously identified, however, there has been a bias toward nickel exploration historically. The Billy Ray gold anomaly is 1.2 kilometres by 0.9-kilometre and remains open and untested by drilling.”
Black Swan: potential 6.5-kilometre corridor
At Black Swan, anomalous gold values were returned in drill holes that intersected the mineralised structure along the corridor, with soil anomalies also identified on neighbouring tenure.
A metal detecting program recovered several small gold nuggets along the corridor with numerous historic shallow workings that are typical of repeated detecting phase. This prospective corridor is virtually untested by drilling, with only 5% of all previous drill samples at Black Swan assayed for gold
Shalders said: “At Black Swan an assessment of the locations of prior prospector workings and a follow-up detecting program has recently recovered a number of gold nuggets with a maximum weight of 0.4 grams.
“There has been limited gold exploration activities historically at Black Swan. The gold nuggets have demonstrated a consistent trend along the eastern portion of the Black Swan tenement landholding which requires follow-up to assess the potential of this target."
Work ahead
“The company is excited by the greenfields gold exploration targets at Black Swan, Windarra and Lake Johnston and plans to undertake low-cost surface exploration works in the immediate future,” said Shalders.
Poseidon says the gold occurrences at Windarra, Lake Johnston and Black Swan warrant follow-up exploration to further define the targets. It intends to undertake soil sampling programs that are complementary to progressing multiple greenfields targets across nickel, lithium and gold.
The proposed programs are comprehensive and a first of their kind over the project portfolio where a full suite of assays will be systematically recorded.