With the success our geologists have had to date at the Windarra Nickel Project, the Geology Team is extremely excited about the recent Black Swan and Lake Johnson acquisitions from Norilsk Nickel. The two new projects have large tenement holdings covering vast sequences of nickel hosting.
We currently use standard configuration drilling systems both on the surface and underground but have been experimenting with the Wasarra drill system which offers the promise of faster drill times andlower costs.
Massive nickel bearing sulphide underground at Lake Johnson in a pyrrhotite-pyrite pentlandite ore. Recent drilling hasidentified some of the highest grades and widths of ore ever seen at Windarra. ultramafics. Whilst both operations have undergone significant quality exploration resulting in mine discoveries during their operational histories; new technology, software, geophysical/geochemical techniques and evolving geological ideas are now available to potentially extend existing mineralization or to define new targets.
Due to fluctuating nickel prices since the Global Financial Crisis (GFC) both operations have experienced pressure from declining nickel prices resulting in several shut downs and restarts of the mining operations. This has had an effect on resource/reserve drilling, mine planning, mine production schedules and ongoing exploration expenditure. It is evident that improvement can be made to the grade control, mine planning and mining operations of both Black Swan and Lake Johnson operations following a campaign of in-mine drilling to exploit near mine opportunities prior to the recommencement of mining.
Evaluation of the existing drilling data is currently being undertaken using modern specialised software which will highlight favorable areas that require infill drilling and identify trends in the mineralisation which may have been overlooked to date due the financial/production pressures.
Poseidon’s geologists are currently reviewing and rebuilding the drilling data sets, geological models and mine models for both operations. Poseidon’s Geology Team likes to look at things through a new set of eyes and inject their own ideas and interpretations into all of the projects they look at. Poseidon’s exploration success to date is corner-stoned by our geologist’s ability to evaluate opportunities independently, come up with new geological models/ideas and have the confidence to test them. Most of the near-surface mineralisation has been found by the previous owners. We now have to look smarter, deeper and for blind deposits within and under structurally complex zones which have had limited exploration undertaken on them to date. There is no such thing as a failed hole in the Poseidon Geology Team, it’s another piece of information to assist in the interpretation and definition of our geological models and exploration targets.
These acquisitions along with the company’s flagship Windarra Nickel Project, puts Poseidon in a prime position to be ‘Australia’s New Nickel’.
Over the coming weeks and months I’ll provide updates and more detailed information on our drilling and exploration progress and activities at Lake Johnston - register here for updates.
Note: This is an extract taken from the 2014 Poseidon Nickel Annual Report for a full pdf copy click here.