Poseidon Nickel Limited

Further Validation of Gold Potential at Black Swan and Lake Johnston

Poseidon Nickel (ASX: POS, the Company) is pleased to provide an update on gold exploration programs at Black Swan and Lake Johnston.


  • Gold bearing bedrock confirmed at Black Swan
    • Multiple anomalous gold rock chip samples (grading up to 1.25g/t Au) returned from highly weathered quartz bearing shears exposed at surface
    • Soil sampling program completed as well as additional rock chip samples collected across the tenement portfolio
    • Assay results expected early next quarter with any defined anomalies to be followed up with high priority drilling programs
    • Geological setting shown to be very similar to nearby gold mines including Kanowna Belle and Gordon Sirdar
  • Lake Johnston copper-gold anomaly extended
    • Initial soil results have successfully extended the Billy Ray Cu-Au soil anomaly into the largely untested Mantis tenement and the anomaly remains open to the North-East
    • High priority soil sampling program to continue with completion expected this quarter
    • Billy Ray Cu-Au soil anomaly and likely link to the mineralised Cu-Au drill intersection nearby supports the prospectivity of a larger Cu-Au system
    • Planning for Flora and Heritage Surveys for drill testing at Billy Ray has commenced

CEO, Brendan Shalders, commented, “Ongoing exploration works focused on gold prospectivity at Black Swan and Lake Johnston continue to generate positive results.

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. 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 Cu-Au anomaly. The anomaly remains open to the North-East, with geological structures suggesting the potential for further Cu-Au 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 Cu-Au anomalies identified to plan drilling programs to test the Billy Ray Prospect.

The Company is pleased with the recent series of exploration results as they continue to enhance the prospectivity for gold at both Black Swan and Lake Johnston. The low-cost exploration programs that are underway are important to defining drill targets to efficiently test the gold potential in these areas.”

Black Swan - Located in Geological Setting Prospective for Gold

The Black Swan project is situated within the Boorara Geological Domain which hosts a number of gold mines including the nearby Kanowna Belle, Mungarra and Gordon Sirdar projects, refer Figure 1, as recently announced in ASX announcement “Gold Prospectivity Enhanced at Black Swan and Lake Johnston” re-released 16 August 2024.

Figure 1: Black Swan Regional Geology Map & Tenement Locations

Bedrock Gold Confirmed

Results from 17 rock chip samples recently collected from Black Swan have confirmed gold mineralisation in bedrock units located close to some of the recently announced gold nugget discoveries. The best rock chip returned 1.25g/t Au from a gossanous quartz vein hosted within felsic volcanic, see Figure 2. Additional rock chips with anomalous gold (>0.5g/t Au) were returned from ferrous quartz veining and within felsic volcanics (refer Table 1).


Click here for the full ASX Release

This article includes content from Poseidon Nickel Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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