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Poseidon proving up nickel sulphide, lithium potential of Lake Johnston
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Poseidon Nickel’s review of the lithium potential at its Lake Johnston project has uncovered some very promising findings, including elevated levels of lithium similar to those recently reported by others in the region.
The Lake Johnston region is emerging as an exciting new major lithium province following potentially significant discoveries that have sent investors into a frenzy and caught the eye of the majors.
Poseidon Nickel (ASX:POS) has long held highly prospective ground in the Lake Johnston region, which initially was being explored solely for its nickel potential and could host potential economic accumulations of highly sought after nickel sulphides, but following a soil sampling program is now also demonstrating positive signs for lithium.
The company revealed yesterday that recent soil sampling targeting the southern area of the Western Ultramafic Unit returned anomalous lithium values over a strike length of 3km with corresponding rubidium and caesium anomalism.
Significantly, this program returned elevated lithium levels of over 100 parts per million (ppm), which Poseidon noted was similar to those recently reported by other companies within the Lake Johnston region.
Earlier in December, Charger Metals (ASX:CHR) attracted heavyweight Rio Tinto (ASX:RIO) as a partner to its Lake Johnston lithium project in a $42.5m deal.
Prior to that TG Metals’ (ASX:TG6) share price went on a mad 1138% sprint in a matter of days after it announced what is believed to be Australia’s first totally blind pegmatite discovery at its Burmeister project in the same region.
Poseidon is planning further works at Lake Johnston to better understand the source of the lithium and rubidium in-soil anomalism and an expanded lithium review is now underway across the project.
“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,” CEO Craig Jones explained.
“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.”
Poseidon plans to ramp-up its lithium search activities in 2024.
Strong nickel sulphide potential
Meanwhile, the company has also announced positive drilling results from its Maggie Hays West prospect with strong indicators that suggest possible economic concentrations of nickel sulphides.
Drilling has uncovered a strong, 1km-long coherent nickel, copper and platinum group elements (PGE) regolith anomaly.
The nickel, copper and PGE pathfinder suite confirms an ‘embayed’ channel feature along the basal contact – a key setting where economic concentrations of nickel sulphides could potentially accumulate.
Top drill hits included 36m at 0.99% nickel, 286ppm copper and 141 parts per billion (ppb) PGE with intervals grading up to 2.37% nickel, 624ppm copper and 353ppb platinum plus palladium; and 21m at 1.13% nickel, 374ppm copper and 136ppb PGE with intervals grading up to 2.16% nickel, 425ppm copper and 207ppb platinum plus palladium.
“The company continues to advance its exploration activities on several fronts,” Jones said.
“At Lake Johnston, the nickel exploration activities have been focused 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.”
Over at the Windarra gold tailings project, Poseidon has engaged a consultant to undertake a belt scale review across the tenements and recommend follow up work programs to realise the potential.
The company is also continuing to engage with multiple parties showing renewed interest in the Windarra and Lancefield gold tailings projects as well as the South Windarra water resource.
This article was developed in collaboration with Poseidon Nickel, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
