Poseidon Nickel (ASX:POS) reports it has received $180,000 from the Western Australian Government’s Exploration Incentive Scheme (EIS) to fund 50% of the planned nickel drilling program at the Lake Johnston Project.
The drilling program will target the Western Mafic unit, which the company interprets to represent the extruded portion of the intrusive body that has breached the banded iron formation (BIF).
The stratigraphic contact position that is located between the extrusive komatiite and the underlying BIF unit is named the basal contact.
As the extrusive lava flows over the basal contact, melting and assimilating of the sulphidic BIF units occurs, which is conductive for the formation of nickel sulphide.
The company says it is within the channelised, embayed positions of the extrusive ultramafic units as it flows along the basal contact is where nickel sulphides can accumulate to form massive sulphide deposits.
As a result, Poseidon says finding the channelised flows along the Western Ultramafic basal contact is a key exploration target of the proposed reverse circulation (RC) drill program.
It also reports all the stratigraphic units have subsequently been deformed and overturned over the length of the company’s tenement portfolio at Lake Johnston.
Poseidon Managing Director and CEO Peter Harold said the company is delighted to receive the EIS grant from the Western Australian Government which will assist the company to explore the highly prospective Western Ultramafic Unit within the project.
“Historically, the nickel exploration mindset at Lake Johnston was heavily focused on the Central Ultramafic Unit as it hosts both the Maggie Hays and Emily Ann nickel mines”
“Historically, the nickel exploration mindset at Lake Johnston was heavily focused on the Central Ultramafic Unit as it hosts both the Maggie Hays and Emily Ann nickel mines.
The Western Ultramafic unit prospectivity is underpinned with promising reconnaissance nickel drill intersections along its approximately 18km strike and remains underexplored.
Planning for this initial program is well advanced and we anticipate commencing the program in early 2023. We are also assessing the lithium potential on our tenements following a number of approaches by third parties and a review of the previous lithium exploration activities carried out by Poseidon.”
Exploration undertaken by Poseidon has identified and tested the geological model indicating that the historical mine Emily Ann is hosted within a shallow intrusive peridotite body that has been confined shallowly by the presence of a BIF unit.
Intersections of the nickel sulphide mineralisation were discovered and interpreted as the feeder zone to the intrusive, known as Abi Rose.
The basal contact of the Western Ultramafic is considered a ‘high priority’ target for potential economic nickel sulphide mineralisation, and although ‘sparsely’ drilled with a lack of drilling near the surface, historical nickel sulphide intersections drilled by previous explorers through the belt prove the ‘fertility’ of the unit and have had little follow-up.
Poseidon also notes with this, ground EM has failed to produce distinct conductive responses as the BIF response has swamped the data.
The company says a systematic RC drill program totalling 15,000m has been planned at regular 400m line spacing to test the basal contact position in fresh rock with planned hole depths to 100m.
This drilling program will assist in mapping the basal contact and delineate geochemical vectors towards nickel sulphide mineralisation.
Poseidon reports a Program of Works for the drilling has been approved by the relevant department and the company plans to commence the program in early 2023.
Running in parallel with the drilling program, the company is also reviewing the lithium potential at Lake Johnston following approaches from third parties.
Previous work has provided a good foundation into the understanding of the fractionation of pegmatites in an area previously identified which supports ongoing targeting activities.
The company says as part of the work completed, rock chip sampling of pegmatites identified lithium mineralisation towards the northeast of the Lake Johnston tenement package indicating lithium prospectivity in the area.
Poseidon Nickel is a nickel sulphide exploration and development company with 3 projects located around Kalgoorlie in Western Australia including the Windarra, Black Swan and the Lake Johnston projects.
Images: Poseidon Nickel Ltd
