Poseidon re-rates nickel potential at Windarra with discovery of new targets

Poseidon identifies two new highly prospective nickel targets at the Windarra project.
A recent geological review greatly re-rates the nickel potential, with two new targets identified and re-assessment of existing targets.
Windarra’s nickel sulphide prospectivity is underpinned by its large nickel endowment.

Special Report: Poseidon Nickel has identified new high priority targets at its Windarra nickel project in Western Australia that demonstrate the strong exploration upside for building a significant resource.

Poseidon Nickel (ASX:POS) has uncovered two new highly prospective targets within the 10km of reviewed area along the extensive 21km of strike at the Windarra nickel project, increasing the number of prospective channel structure trends to six.

The company completed a geological review in partnership with a number of specialist exploration consultants, which CEO Craig Jones says, “has greatly re-rated the nickel potential at Windarra”.

“In regards to Windarra, it’s important to note that the nickel sulphide prospectivity is underpinned by its large nickel endowment consisting of 114,000 nickel tonnes in ore historically mined, and 148,000 tonnes of nickel within the existing mineral resources,” he said.

“The recently completed stage one geological assessment focused on modelling the basal contact and characterising the overlying ultramafic rocks.

“The assessment has identified new windows of opportunity along the extensive 21km of preserved basal contact strike, where only 10km has been meticulously assessed and validated to date.”

The two newly identified channel structures, NW05 and NW04, are both considered highly prospective.

Underexplored historic mine

Previous owner Western Mining Corporation ceased mining and processing operations at Mt Windarra in the mid 1990s. Despite the company producing over 114,000 tonnes of contained nickel from two ore bodies – Mt Windarra and South Windarra – and the existing resources of 148,000 tonnes of contained nickel, the project is considered underexplored.

Less than 4km of the 21km belt has been the subject of focused and detailed exploration activities, and Poseidon has determined that there is significant potential to grow the nickel resources through further exploration based on the outcomes of the stage one assessment.

“There is a great opportunity for further low-cost exploration techniques to expand on the exploration model prior to deeper drilling where there has been limited exploration, leaving a large window for new resources to be discovered,” Jones said.

Poseidon is now planning exploration programs to investigate the potential of the higher priority NW05 and NW04 targets.

A stage two geological assessment of the ground between Windarra South to Cerberus will be undertaken on the remaining 11km to complete the assessment of the underexplored basal contact strike at Windarra.

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.