Poseidon Nickel Limited’s (ASX: POS) application for a Western Australian State Government grant under the Exploration Incentive Scheme (EIS) for the planned drilling programme on the Western Ultramafic Unit at Lake Johnston has been successful with a grant of A$180,000 being awarded.
“The company is delighted to receive the EIS grant from the WA State Government which will assist us to explore the highly prospective Western Ultramafic Unit within the Lake Johnston Project,” Managing Director and CEO, Peter Harold, said.
“Historically, the nickel exploration mindset at Lake Johnson was heavily focused on the Central Ultramafic Unit as it hosts both the Maggie Hays and Emily Ann nickel mines. The Western Ultramafic unit prospectivity is underpinned with promising reconnaissance nickel drill intersections along its approximately 18km of strike and remains underexplored.
“Planning for the initial programme is well advanced and we anticipate commencing the program in early 2023. We are also assessing the lithium potential on our tenements following a number of approaches by third parties and a review of the previous lithium exploration activities carried out by Poseidon.”
Exploration Incentive Scheme Grant
Offered under Round 26 of the Western Australian State Government’s co-funded Exploration Incentive Scheme (EIS), the grant awarded to Poseidon will reimburse the company for up to 50% of direct drilling costs and 50% of mobilisation costs (capped at A$5,000), up to a combined maximum of A$180,000 towards the cost associated with the planned Western Ultramafic exploration programme.
The scheme is designed to support exploration activity in underexplored areas with valid geological methodology. The grant application process is highly competitive with numerous applications. Submissions are assessed by an expert panel of officers moderated by independent industry representatives with only 38 EIS grants offered in Round 26.
Background
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, a 1.5Mtpa processing plant, 200- person village, airstrip, tailings facility and associated infrastructure. Approximately 1.5 million tonnes of ore was mined from Emily Ann at an average grade of 3.8% nickel delivering 57,000 contained tonnes of nickel in concentrate between 1998 and 2007. Mining of the Maggie Hays deposit, with an initial resource of 12.3 million tonnes at 1.5% nickel for 182,000 contained nickel, began in 2008 before the mine and processing plant were placed under care and maintenance in 2013 due to the historically low nickel price. A resource of 52,000 tonnes nickel averaging 1.49% nickel remains at Maggie Hays.
Exploration activities planned
A systematic RC drill programme totalling 15,000 metres has been planned at regular 400m line spacing to test the basal contact position in fresh rock with planned hole depths to 100 metres. This drilling program will assist in mapping the basal contact and delineate geochemical vectors towards nickel sulphide mineralisation. A Program of Works (PoW) for the drilling has been approved by the relevant department and the Company plans to commence the program in early 2023.
Lithium Opportunity
Running in parallel to the Western Ultramafic drill programme, Poseidon is reviewing the lithium potential at Lake Johnston following approaches from third parties. Previous work has provided a good foundation into the understanding of the fractionation of pegmatites in an area previously identified which supports ongoing targeting activities. As part of the work completed, rock chip sampling of pegmatites identified Li2O mineralisation towards the northeast of the Lake Johnston tenement package indicating prospectivity for lithium in the area.
For further information please visit: https://poseidon-nickel.com.au/
