Poseidon Nickel (ASX Code: POS, 'the Company') is pleased to declare a JORC 2012 compliant Mineral Resource for the Lancefield Gold Tailings Project.

The Company has purchased an option to acquire the right to treat the Lancefield Gold Tailings. If the option is exercised the Company will enter into a Royalty and Right to Treat Agreement with the licence holder of the Lancefield tailings, granting the Company the exclusive right to reprocess the gold tailings from the Project.

The Lancefield Tailings Mineral Resource estimate has been generated following a sonic drilling program undertaken during Q4 2020 at the Project which complemented a resource definition drilling program completed in 2009. The 2020 drilling program comprised 23 holes, ten of which twinned the previous drilling plus 13 additional holes. In addition to the 2020 drilling program, an extensive pulp re-assay program was carried out on the rejects from the 2009 drilling.

The Lancefield Gold Tailings will now be incorporated into the Definitive Feasibility Study currently being undertaken on the Windarra North and South Tailings Dams that contain an Indicated Mineral Resource totalling 105,000oz gold. The Definitive Feasibility Study is due for completion late Q1 2021.

Contact:

Peter Harold

Tel: 61 (0)8 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 300km radius of 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 (excluding Lancefield Tailings). Poseidon's strategy is focused on the exploration and eventual restart of its established nickel operations in Western Australia where project risk capital and operating costs are low. A critical element of this strategy has been to acquire projects and operations with high levels of geological prospectivity likely to lead to potential substantial extension of the operation's life 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 Abi Rose deposit at Lake Johnston and the recent discovery of the Golden Swan mineralisation at Black Swan. The Company is also undertaking a Definitive Feasibility Study on retreating the gold tailings at Windarra and Lancefield given the strength of the A$ gold price.

(C) 2020 Electronic News Publishing, source ENP Newswire