Poseidon Nickel Ltd (ASX:POS) has plans to use its existing plant and infrastructure to become the first hard rock lithium producer in the Lake Johnston region of Western Australia.
The company has entered into an agreement with Kidman Resources Ltd (ASX:KDR) to process Kidman’s Mt Holland lithium ore at Poseidon’s Lake Johnston nickel plant.
This envisages processing lithium hosted spodumene pegmatites from Mt Holland and a step towards creating Lake Johnston as the central lithium processing hub.
Kidman will define a maiden lithium resource estimation and will fast track testwork on Mt Holland composite samples.
The preliminary engineering design for processing lithium pegmatites at the 1.5 million tonnes per annum concentrator is being undertaken to support the co-processing of both nickel and lithium ores.
Poseidon plans to use its plant and infrastructure to become the first hard rock lithium producer in the Lake Johnston region and establish it as a central lithium processing hub.
Interestingly, Poseidon recovered over 90% lithium and 300 parts per million tantalum oxide from preliminary flotation tests on surface pegmatite samples from its 100% owned Lake Johnston nickel project.
This is on the back of impressive assay results of 2.80% to 3.85% Li2O in samples from reconnaissance field work.
Poseidon will complete soil sampling, rock sampling and core processing to identify the spodumene corridor at the Lake Johnston project.
Trenching is planned to define the structural orientation of the pegmatites and recover enough material to facilitate bulk testwork.
The company is currently seeking clearing permits from the Department of Mines and Petroleum (DMP) to support the proposed trenching and drilling programs.
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