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GEOLOGY

In addition to the near-term production potential, Lake Johnston demonstrates excellent exploration potential in a number of areas such as Johnny Turk, located between MH and EA; Taylor Rock, located approximately 60km south-east of MH; and Mt Glasse, located approximately 40-60km to the south-southeast of the Lake Johnston operations centre.

 

Near Mine

 

RC drilling conducted in late 2012 at the Jonny Turk prospect, approximately mid-way between Emily Ann and Maggie Hays resulted in multiple intersections of disseminated nickel sulphides in drill hole 12NLJC0014, including 20m at 0.56% Ni from 140m, 4m at 0.63% Ni from 164m and 2m at 0.51% Ni from 174m. These intersections require follow up by Poseidon. A structural geology and magnetic interpretation study was completed by the highly regarded structural expert, Leigh Rankin, in December 2012. Rankin identified an entire new prospective corridor parallel and immediately adjacent to the main MH-EA belt. The potential exists for remnant bodies of nickel sulphide mineralisation to be present within rock types previously considered unsuitable and ignored e.g. granites. This new prospective corridor has been blanketed with high-power fixed-loop electromagnetic and the data is currently being processed. In 2012, several intersections of stringer nickel sulphide were identified in RC drilling up-dip of the mined Emily Ann deposit.

 

Taylor Rock

 

The Taylor Rock prospect is located approximately 60km south-east of the Lake Johnston operations centre. An intersection of 17m at 0.68% Ni of disseminated nickel sulphides in a 2010 RC drill hole from the Eliza May prospect at Taylor Rock demonstrated that the mapped ultramafic package identified is ‘live’ and therefore holds the potential for further discoveries. Follow up drilling in 2012 resulted in additional disseminated sulphide intersections. This result was the first significant find of genuine magmatic sulphides along the Koolyanobbing shear zone in the Lake Johnston area. The strike extension of this package is the Brian’s Bluff tenement, which was earmarked for electromagnetic surveying and drill testing. The potential exists for an entirely new nickel belt along the Koolyanobbing Shear, within trucking distance of the Emily Ann processing plant. The Koolyanobbing Shear zone, which recent magnetotelluric imaging has determined to be a deep crustal structure, is an important targeting criterion.

 

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Location of Taylor Rock drill holes on interpreted geology