Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) is trading higher after uncovering greenfield nickel intersections during reconnaissance drilling targeting the newly-identified Western Ultramafic Unit (WUU) at its Lake Johnston project in Western Australia.
The drill program tested 14 kilometres of the 17-kilometre prospective WUU structure.
Assays results returned coincident nickel sulphide pathfinder zones in seven separate prospects, namely Roundtop, Raggedy Ann, Johnny Turk, Maggie Hays North, Maggie Hays West, Windy Hill and Jaymee Ruth.
The pathfinder anomalism includes more than 0.4% nickel, at times in excess of 1.0%, more than 150 parts per million (ppm) copper and greater than 500 ppm cobalt in ultramafic rocks at various locations along the belt.
"Exciting" time for Lake Johnston
Poseidon managing director and CEO Peter Harold said: “The initial results from the drilling program are extremely positive for a reconnaissance program and confirmed several areas of coincident nickel copper anomalism at several prospects along the Western Ultramafic Unit basal contact.
“The results indicate the possibility of a mineralised, open-ended channel target at Maggie Hays West that is up to 400 metres wide and corresponds to a discrete magnetic feature.
“This interpretation presents a compelling high-priority target that warrants further drilling.
“The Western Ultramafic Unit opens up new opportunities for further discoveries and is an exciting development for Lake Johnston.
“The company looks forward to progressing exploration on the Western Ultramafic Unit.”
Poseidon shares have been as much as 11% higher intraday to $0.041.
Raised prospects
Drilling at Maggie Hays West has raised the potential of the prospect from historic nickel sulphide drill intersections as well as the thickening of the WUU to 300 metres on one of the drill lines.
The latest drill results include:
- PLJA075 - 28 metres at 0.66% nickel and 187 ppm copper from 20 metres, including 4 metres at 1.32% nickel and 134 ppm copper from 40 metres;
- PLJA076 - 20 metres at 0.87% nickel and 157 ppm copper from 32 metres, including 8 metres at 1.18% nickel and 143 ppm copper from 40 metres;
- PLJA078 - 24 metres at 0.88% nickel and 220 ppm copper from 12 metres, including 12 metres at 1.16% nickel and 256 ppm copper from 20 metres;
- PLJA080 - 4 metres at 0.41% nickel and 245 ppm copper from 28 metres and 4 metres at 0.52% nickel and 744 ppm copper from 36 metres; and
- PLJA086 - 40 metres at 0.65% nickel and 205 ppm copper from 24 metres to the end of hole.
Regional targets
The recent drill program has also defined six other targets with anomalous nickel near WUU for follow-up, including the newly-identified Windy Hill and Jaymee Ruth prospects.
At Windy Hill, elevated nickel-copper trends have been intersected including at:
- PLJA087 - 16 metres at 0.55% nickel and 133 ppm copper from 28 metres;
- PLJA091 - 16 metres at 0.44% nickel and 152 ppm copper from 4 metres and 20 metres at 0.7% nickel and 112 ppm copper from 20 metres; and
- PLJA140 - 12 metres at 0.46% nickel and 329 copper from 8 metres and 4 metres at 0.48% nickel and 812 ppm copper from 24 metres (end of hole).
Similarly, the new prospect at Jaymee Ruth in the south of the tenement holding has been identified with elevated nickel-copper ratios along an 800-metre geochemical anomaly.
Significant intersections here include:
- PLJA116 - 8 metres at 1.04% nickel and 126 ppm copper from 12 metres, including 4 metres at 1.23% nickel and 125 ppm copper from 12 metres; and
- PLJA124 - 4 metres at 0.41% nickel and 199 ppm copper from 16 metres (end of hole).
Drilling at Roundtop, Raggedy Ann, Johnny Turk and Maggie Hays North prospects have all returned anomalous nickel but further assessments are needed.
Next steps
Poseidon has further sampled the anomalous zones at closer intervals, which will include analysis for PGEs.
This will also assist in the planning for infill and follow-up drilling at the identified prospects, along with testing the 4-kilometre south extension of the WUU.