ASX-listed Poseidon Nickel is getting back to exploration at the Lake Johnston project, in Western Australia, following a four-month hiatus while focusing on a sales process.
Now that the heads of agreement to sell Lake Johnston to fellow listed Mineral Resources (MinRes) has been terminated by the prospective buyer, Poseidon has restarted field activities.
Rock samples have been taken from numerous newly identified outcropping pegmatites in the southern Lake Johnston area, says CEO Brendan Shalders.
Late last year, Poseidon entered into an earn-in agreement with Mantis Resources over tenements adjacent to the company’s that host outcropping lithium-bearing pegmatites returning high grades from 2.8% to up to 3.85% lithium oxide.
For nickel, the October 2023 shallow reconnaissance drilling programme at the Maggie Hays West prospect confirmed a promising strong, 1-km-wide, coherent nickel/copper/platinum group metals regolith anomaly, which is an indicator of weathered nickel sulphides directly below.
“As generative programmes continue at Lake Johnston, we look forward to keeping the market informed as results come to hand. Any regional exploration success for lithium or nickel at/or near the Lake Johnston plant has the potential for this infrastructure to be a processing centre,” says Shalders.
Commenting on the cancelation of the Lake Johnston divestment, he says that it was disappointing that MinRes requested to renegotiate the binding heads of agreement on terms that were not acceptable to Poseidon.