Poseidon Nickel Limited (ASX: POS, 'the Company') is pleased to provide this exploration and gold tailings project update.
CEO, Craig Jones, commented: 'the Company continues to advance its exploration activities on several fronts. At Lake Johnston, the nickel exploration activities have been focussed along the highly prospective Western Ultramafic Unit with results returning elevated nickel and platinum group metals that support the existence of the extensive Maggie Hays West anomaly and potentially points towards a mineralised channel. A review of the lithium potential is well underway at Lake Johnston with soil samples containing elevated Lithium and indicator minerals located towards the southern end of our tenements. The detailed review includes additional soil sampling to determine the size and scale of this opportunity and a resampling of historic pegmatite in existing drill core. As part of the ongoing lithium evaluation, a selection of pegmatite samples (10cm each) from existing core has been sourced aided by UV light and pXRF. While no significant lithium assay values were returned, these results are being incorporated into the historical data previously collected by Poseidon to build lithium fertility maps of the region. Following on from the recent exploration targeting review of Windarra, a project scale target identification program is underway along sections of the 24km of strike of the basal contact, targeting additional opportunities for low-cost exploration activities. The initial focus is along a 7km section to the south of the historical Mt Windarra mine.
Western Ultramafic Unit Exploration
The first batches of assay results for the October 2023 drill program that targeted both Maggie Hays West and several other regional targets along the Western Ultramafic Unit (WUU) have been received. Whilst not all assays have been returned, the higher priority assay results from Maggie Hays West have been received.
Maggie Hays West
The Maggie Hays West October 2023 drill program consisted of 17 aircore (AC) holes for a total of 807 metres. The AC holes were drilled on 100m spaced lines with the aim to define the position of the basal (eastern) contact of the WUU against the Banded Iron Formation (BIF) unit that separates the WUU from the underlying Central Ultramafic Unit (CUU). The former Maggie Hays nickel orebody and associated underground workings are hosted within the CUU approximately 200 metres to the east of (directly below) Maggie Hays West. Assay results have now been received for all AC holes completed at Maggie Hays West. The results include a best nickel intercept of 1.0m at 2.37% Ni, 347ppm Cu and 249ppb Pt+Pd in Hole PLJA176, within a 36m intercept of 0.99% Ni. This provides significant additional support for the existence of a strong coherent nickel anomaly associated with the interpreted komatiite channel and basal contact of the WUU. Interpretation of the results, in conjunction with a detailed review of the historical drilling suggests the Maggie Hays West anomaly consists of a 1km long channel feature developed in the WUU directly above the CUU. In addition to the anomaly, the channel is also partly defined by an appreciable thinning of the BIF unit that separates the two ultramafic units in this area. A potential connection with the possible complete absence of the separating BIF unit is now also recognised near to the surface further enhancing the prospectivity of the largely untested WUU and creating an exciting exploration target. Testing of the Maggie Hays West anomaly and associated WUU 'channel-like' zone warrants further exploration efforts and planning for efficient targeting with cost effective exploration techniques, is being evaluated for the next stages of the work programs for 2024.
Regional Targets
No assays have been received to date from the regional targets tested as part of the October 2023 drill program. Based on historical drill results and pXRF readings from the drill program, additional priority shallow AC drilling is required at Johnny Turk, Raggedy Ann and Roundtop to test and further define the extent of high MgO lithologies identified near the basal contact of the WUU in these areas. This additional shallow drilling is planned to be completed in 2024
Lake Johnston Lithium Review
The lithium potential of the Lake Johnston Project is currently being reviewed. Data from five recently completed regional soil sampling programs to delineate the extent of the WUU were re-examined, four of which were orientation surveys to determine the effectiveness of the Ultrafine technique to define bedrock in transported regimes to the north of the project. The standout area was the southern-most program where in-situ soils covering the WUU returned anomalous lithium values with corresponding rubidium (Rb) and caesium (Cs) anomalism in places over a strike length of 3km. This anomaly is open to the east and south-west where it continues underneath North Lake Hope. The lithium levels in the soils are similar to levels recently reported by other companies exploring for lithium bearing pegmatites in the Lake Johnston region. The coincident Rb in-soil anomalism could indicate the presence of pegmatites as Rb is incompatible in early forming minerals and increases in the melt as they fractionate. It is interpreted that there is a potential granite source associated with the pegmatites that are present to the west of the anomaly. Three orientation soil sampling programs completed at Roundtop, Johnny Turk and Magie Hays West along the WUU have also returned similar lithium values but, in these areas, transported soil cover up to 30 metres thick is present. Thus, these results are considered less significant as they may not represent true bedrock anomalism. In addition to the soil data, a preliminary review of the logged pegmatite data recorded in the Lake Johnston Project drill-hole database was also completed which identified numerous broad pegmatite zones (>100m thickness). Selective inspection of the available core from several of these zones with pXRF and UV light resulted in eight fluorescent samples with slightly elevated lithium levels which were sent for analysis. While the assay results from this limited sampling did not return any significant lithium anomalism, it has provided important information regarding the mineralogy of the pegmatites. These results will be incorporated with the historical data previously collected by Poseidon to build lithium fertility maps of the region. The initial results of the lithium review supports further work with the Company intending to ramp-up lithium search activities in 2024. The initial focus will involve field checks, resampling of existing cores and verification of existing soil anomalies, followed by mapping and rock chip sampling about known pegmatite outcrops and significantly extending soil sampling coverage over areas of in-situ residual soils. To assist the implementation of this work and drive target selection and prioritisation the Company has engaged a consultant with significant lithium expertise
Gold Tailings Project
The Company has recently completed metallurgical testwork to assess the potential of Draslovka's Glycine Leaching Technology, which may improve gold recoveries for the tailings retreatment project. Draslovka is a global leader in cyanide-based chemical specialties and their Glycine Leaching Technology (GlyCATTM) is considered one of the most environmentally sustainable and cost-effective ways to produce precious metals and critical minerals. Results are reported on representative samples of the Lancefield gold tailings (Comp C) and two samples of nickel tailings from the Windarra Central Dam (WCD). The samples were collected from separate sonic drilling programs.
After interpolation of the leach kinetics for the GlyLeachTM test, approximately 35% of the nickel in the WCD nickel tailings sample was leached within a 16-hour period. This is the leach residence time available in the Carbon-In-Pulp (CIP) leach tanks proposed for the Windarra Gold Tailings Project. The positive results reported for the nickel tailings sample opens the opportunity to consider incorporating the WCD into the production profile for the Windarra Gold Tailings Project. The activated carbon for the CIP circuit could be switched to a suitable resin when processing the nickel tailings with the nickel and cobalt extracted from the resin using the same stripping circuit, mining, and processing equipment. The positive result for the Lancefield Comp C sample opens the opportunity to significantly improve the gold extraction from the Lancefield gold tailings. Realising both opportunities would require the installation of a Ball Mill and cyclone cluster to grind the tailings finer. Additional testwork would be required to assess if these recent metallurgical breakthroughs can deliver improved economics for the project. Since the Windarra Gold Tailings Definitive Feasibility Study (DFS) (refer to ASX announcement 'Windarra Gold Tailings DFS Highlights Robust Project' released 23 July 2021) was released, the Australian dollar gold price has improved significantly, lifting approximately 30% from A$2,333/oz in the DFS to circa A$3,000/oz today. The improvement in gold price combined with an uplift in gold recoveries, would improve project economics. The Company is continuing to pursue development opportunities with interested partners for the project.
Exploration review
Following a recent review of the Windarra exploration opportunities, a specialist consultant has been engaged to complete a belt scale review across the tenements and recommend follow up work programs to realise the potential. An initial focus of approximately 7km of the basal contact between Cerberus and Mt Windarra is underway. Validation of the historical data is being completed that will support the creation of long sections throughout the belt, tied together with surface mapping and the construction of a three-dimensional footwall model. Following this initial work, it is anticipated that quality targets will be generated that will support future low-cost work programs that can be incorporated into activities throughout 2024.
Contact:
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 radius of 300km from Kalgoorlie in the Goldfields region of Western Australia and a resource base of over 420,000 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 with the aim of being a profitable and sustainable nickel producer. 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, Black Swan Lake Johnston and Windarra 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, the Abi Rose and more recently the Maggies Hays West mineralisation at Lake Johnston. The Company completed a Bankable Feasibility Study on Black Swan in November 2022 which is planned to be the first project to restart, subject to appropriate project financing structures being achieved, the outlook for the nickel price remaining positive and all necessary approvals being obtained. A Definitive Feasibility Study on retreating the gold tailings at Windarra and Lancefield was completed in mid-2022. A potential partner is currently conducting due diligence on the Lancefield gold tailings and accessing the water in the South Windarra pit
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 their information in the form and context in which it appears
FORWARD LOOKING STATEMENTS: This release contains certain forward looking statements including nickel production targets matters that may involve risks or uncertainties and may involve significant items of subjective judgement and assumptions of future events that may or may not eventuate (Forward Statements). 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. No independent third party has reviewed the reasonableness of any such statements or assumptions. None of the Company, their related bodies corporate and their respective officers, directors, employees, or advisers represent or warrant that such Forward Statements will be achieved or will prove to be correct or gives any warranty, express or implied, as to the accuracy, completeness, likelihood of achievement or reasonableness of any Forward Statement contained in this release. Except as required by law or regulation, the Company assumes no obligation to release updates or revisions to Forward Statements to reflect any changes. Recipients should form their own views as to these matters and any assumptions on which any of the Forward Statements are based and not place reliance on such statements.
POSEIDON NICKEL LIMITED 
