Poseidon Nickel (ASX: POS) ('Poseidon' or 'the Company') is very pleased to report nickel intersections from the Company's recent drilling program that focussed on testing the majority of the newly identified Western Ultramafic Unit (WUU) at Lake Johnston.
Managing Director and CEO, Peter Harold, commented, '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 400m 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.
Drilling Program
The WUU structure has been identified along 17km of strike. An initial program of shallow air core (AC) and reverse circulation (RC) drilling to delineate 14km of the interpreted overturned basal contact of the WUU was completed in May 2023. A total of 157 AC holes for 5,081 metres were drilled on 32 x 400-metre spaced lines. Initial sampling was conducted based on 4-metre composites. A further 17 RC holes for 1,556 metres were drilled. The aim of the drill program was to both map the interpreted WUU basal contact and the channelised embayed features that are prospective for the accumulations of nickel sulphide mineralisation at its base and against the basal contact position as observed in Kambalda-style nickel sulphide deposits. The deeper RC holes provide critical geochemical information about the host rock fertility beneath the weathering profile and about the mineralisation of the basal contact.
Anomalous Nickel Intersections
Assay results from the reconnaissance drilling along the WUU has returned coincident nickel sulphide pathfinder (Ni:Co:Cu) anomalous zones within the weathering profile at seven separate prospects, including Roundtop, Raggedy Ann, Johnny Turk, Maggie Hays North, Maggie Hays West, Windy Hill and Jaymee Ruth. The pathfinder anomalism includes Ni > 0.4% (at times Ni > 1.0%), Cu >150ppm and Co >500ppm have also been confirmed over prospective cumulate phase ultramafic rocks at various locations along the belt,.
Regional Targets
This includes the newly identified Windy Hill and Jaymee Ruth prospects. At Windy Hill elevated Ni:Cu trends have been intersected in close proximity to the BIF with limited drilling in the area. Significant Windy Hill intersections include: PLJA087 16m @ 0.55% Ni, 133ppm Cu from 28m6 PLJA091 16m @ 0.44% Ni, 152 ppm Cu from 4m and 20m @ 0.7% Ni, 112ppm Cu from 20m PLJA140 12m @ 0.46% Ni, 329 Cu from 8m and 4m @ 0.48% Ni, 812ppm Cu from 24m (EOH) Similarly, the new prospect at Jaymee Ruth located in the south of the tenement holding has been identified with elevated Ni:Cu ratios at the basal contact along a 800m geochemical anomaly. Significant intersection include: PLJA116 8m @ 1.04% Ni, 126ppm Cu form 12m including 4m @ 1.23% Ni, 125ppm Cu from 12m PLJA124 4m @ 0.41% Ni, 199ppm Cu from 16m (EOH) Roundtop, Raggedy Ann, Johnny Turk and Maggie Hays North prospects have all returned anomalous nickel and further assessment is required on all six prospects
The Lake Johnston Project is located 190km south-west of Kalgoorlie in Western Australia and contains two historical underground nickel sulphide mines, Emily Ann and Maggie Hays, along with a 1.5Mtpa processing plant, 200-person village and associated infrastructure. The existing deposits are hosted within the Central Ultramafic Unit (CUU), which has been the focus of extensive exploration by previous owners. Studies on the Maggie Hays deposit and more recently on Emily Ann by Poseidon indicate both deposits were emplaced within a felsic volcanic sequence by a series of intrusive ultramafic magmas that collectively form the CUU. The CUU and felsic volcanic sequence are capped by a regionally persistent banded iron formation (BIF). The intrusive emplacement model for the deposits was recently enhanced by the discovery of significant nickel sulphide mineralisation within an interpreted narrow feeder zone to the Emily Ann deposit at Abi Rose (refer to Poseidon ASX announcements 'More Nickel Sulphides Intersected at Abi Rose' dated 22 November 2018 and 'Significant High Grade Nickel Intersection at Emily Ann North' dated 25 January 2016). The Western Ultra Mafic Unit (WUU) overlies the regionally persistent BIF sequence and is interpreted to have been emplaced as a series of extruded ultramafic flows by the CUU magmas breaching through the BIF sequence. Therefore, the basal contact of the WUU is considered a high priority target for potential economic nickel sulphide mineralisation by Poseidon that has been historically overlooked.
Potential Restart of Lake Johnston
In order to restart Lake Johnston, the Maggie Hays underground mine would need to be dewatered and the existing process plant refurbished, or a new, high-grade orebody (like Emily Ann) discovered and mined. In early 2022, GR Engineering (GRES), the same organisation that provided the mill refurbishment estimate for Black Swan, completed an engineering study to determine the refurbishment and operation 9 ASX Announcement cost of the Lake Johnston plant and associated infrastructure (refer ASX release Lake Johnston Engineering Scoping Study dated 21 February 2022). The Company has commenced exploration activities aimed at increasing the Lake Johnston resource, focusing initially on the highly prospective Western Ultramafic Unit. Assuming the Company was to restart operations at Lake Johnston that production together with the potential Black Swan production could result in the Company achieving one of its stated corporate objectives of producing >15,000t of nickel in concentrate per annum.
Contact:
Tel: +61 (08) 6167 6600
About Poseidon Nickel Limited
Poseidon Nickel Limited (ASX Code: POS) is a nickel sulphide exploration and development company with three projects located within a radius of 300km from Kalgoorlie in the Goldfields region of Western Australia and a resource base of around 400,000 tonnes of nickel and 180,000 ounces of gold. Poseidon's strategy is focused on the exploration and eventual restart of its established nickel operations in Western Australia. A critical element of this strategy has been to acquire projects and operations with significant existing infrastructure, large nickel resources and geological prospectivity likely to lead to resource growth through the application of modern exploration techniques. Poseidon owns the Windarra, Black Swan and the Lake Johnston Nickel Projects. In addition to the mines and infrastructure including concentrators at Black Swan and Lake Johnston, these projects have significant exploration opportunities demonstrated by the discovery of the Golden Swan Resource at Black Swan and the Abi Rose mineralisation at Lake Johnston. Black Swan will be the first project to restart followed by Lake Johnston and then Windarra, subject to favourable Feasibility Studies, appropriate project financing structures being achieved, the outlook for the nickel price remaining positive and all necessary approvals being obtained. The Company has completed a Definitive Feasibility Study on retreating the gold tailings at Windarra and Lancefield and has entered into a Heads of Agreement with Green Gold Projects whereby Green Gold will develop the project and Poseidon can retain an 8% free carried interest, subject to certain conditions precedent being satisfied
COMPETENT PERSON STATEMENTS
The information in this report that relates to Exploration Targeting and Results is based on, and fairly represents, information compiled and reviewed by Ms Karyn Parker, who is an employee of Poseidon Nickel, and is a Member of The Australian Institute of Geoscientists. Ms Parker, has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (the JORC Code 2012). Ms Parker consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
FORWARD LOOKING STATEMENTS
This release contains certain forward looking statements including nickel production targets. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as 'may', 'will', 'except', 'intend', 'plan', 'estimate', 'anticipate',' continue', and 'guidance', or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production and expected costs. Indications of, and guidance on future earnings, cash flows, costs, financial position and performance are also forward looking statements. Forward looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change, without notice, as are statements about market and industry trends, which are based on interpretation of current market conditions. Forward looking statements are provided as a general guide only and should not be relied on as a guarantee of future performance. Forward looking statements may be affected by a range of variables that could cause actual results or trends to differ materially. These variations, if materially adverse, may affect the timing or the feasibility and potential development of the Lake Johnston Project.
POSEIDON NICKEL LIMITED 
