The gold exploration activities of Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) at the Black Swan and Lake Johnston projects in Western Australia are bearing fruit.
“The low-cost exploration programs that are underway are important to defining drill targets to efficiently test the gold potential in these areas,” said CEO Brendan Shalders.
Gold-bearing bedrock
Recent efforts have validated the presence of gold-bearing bedrock at Black Swan and extended a copper-gold anomaly at Lake Johnston.
At Black Swan, multiple anomalous gold rock chip samples, with grades of up to 1.25 g/t gold, were collected from highly weathered quartz-bearing shears exposed at the surface.
These results confirm the gold potential within the tenement, which has a geological setting similar to nearby gold mines such as Kanowna Belle and Gordon Sirdar.
A soil sampling program across the tenement portfolio has wrapped up, with assay results expected early next quarter. Any defined anomalies will be prioritised for follow-up drilling.
Open copper-gold confirmed
At Lake Johnston, the Billy Ray copper-gold soil anomaly has been extended into the largely untested Mantis tenement and remains open to the northeast. Soil sampling efforts will continue, with completion expected this quarter.
The anomaly’s extension, along with its correlation to a nearby mineralised copper-gold drill intersection, supports the prospect of a larger copper-gold system.
Poseidon has initiated planning for flora and heritage surveys, with a view to commencing drill testing at Billy Ray.
“Ongoing exploration works focused on gold prospectivity at Black Swan and Lake Johnston continue to generate positive results,” said Shalders.
“Rock chip samples collected on a recent site visit to Black Swan have returned anomalous gold from quartz-bearing shear zones that are located in the same area as the recovered gold nuggets.
“Today’s rock chip assay results are an important step forward given the potential source of the recovered gold nuggets has now been identified and these auriferous shear zones are located well within our tenement package.
“To progress the gold targeting along these prospective shear corridors, the company completed a wide-spaced reconnaissance soil sampling program last week across the entire landholding at Black Swan which will be assayed for the full suite of elements.
Drilling on the horizon
“We look forward to receiving the assay results early next quarter and will commence planning drilling programs for any defined gold anomalies.
“Recently received soil sample assay results testing the extension of the Billy Ray prospect at Lake Johnston have confirmed the continuation of the large copper-gold anomaly.
“The anomaly remains open to the northeast, with geological structures suggesting the potential for further copper-gold anomalism over the newly acquired Mantis tenement.
“The company intends to extend soil sampling across the Mantis tenement and will use the assay results and any copper-gold anomalies identified to plan drilling programs to test the Billy Ray prospect.”