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OVERVIEW

The Mt Windarra Nickel Project is located in the Mt Margaret Goldfields of Western Australia and is situated about 25 km west of Laverton. The Windarra Nickel Project contains 3 historic discoveries, 2 of which were subsequently mined at Mt Windarra and South Windarra. Western Mining Corporation and the original Poseidon NL discovered nickel mineralisation in the belt in the late 1960’s and up until the late 1980’s had completed 15,180 drill holes for ~477km of drilling during ownership of the project.

 

To date Poseidon Nickel has completed over 550 drill holes for ~70km of drilling on the project since 2008 in order to bring the historic mine resources into JORC compliant status, as well as the discovery and delineation of a new resource at Cerberus. Additionally Poseidon has delineated a 183 kOz gold and 670 kOz silver resource within the Mt Windarra tailings.

 

In 2008, after completing the resource drilling of the Mt Windarra mine, Poseidon funded the first significant regional exploration programme carried out on the tenements since the 1980’s and was immediately successful in the discovery of what is now known as the Cerberus ore deposit. The discovery relied on the application of modern underground, electromagnetic exploration tools and the application of nickel geological models of Western Australia developed in recent years. After the initial discovery, Poseidon completed a programme of approximately 20,000 metres of diamond drilling to develop the initial indicated and inferred resource. In May 2011, Poseidon started a new drilling programme of 20,000 metres intended to expand the resource and provide the necessary information to undertake a mining reserve calculation in late 2011. The drilling programme was completed at the end of 2011.

 

From 2007 to 2013 Poseidon grew the Windarra resource base at an average 24% per annum through drilling and geological re-interpretation at Mt Windarra and with Poseidon’s Cerberus discovery.