Poseidon and Proto enter exploration JV

Poseidon Nickel and Proto Resources have executed a Heads of Agreement...

  Poseidon Nickel and Proto Resources have executed a Heads of Agreement to form a Joint Venture with the aim of defining and developing a mineable nickel resource at the Menzies Nickel Project.The Menzies Nickel Project, located approximately 130km north of Kalgoorlie in Western Australia, is a multi-commodity advanced exploration project, including nickel laterite, nickel sulphide, cobalt and gold, previously worked by BHP. Proto currently holds the project in Joint Venture with Cazaly Resources, with 90% of the nickel laterite rights, 50% of the nickel sulphide rights, and 70% of the gold rights. Poseidon Nickel is initially joint venturing in on Proto’s nickel laterite interest in the Menzies Project. Poseidon and Proto will contribute in equal shares to the Joint Venture, with each company financing their share into production. Cazaly will continue to hold its interests and will be free carried to completion of a bankable feasibility study. Poseidon is planning to build a nickel sulphide concentrator plant at its Windarra Nickel Project. The company said that the Menzies project is within economical trucking distance to this facility, should sulphide ore be discovered during exploration. Proto is currently planning to develop the Barnes Hill nickel laterite project in Tasmania and is seeking additional laterite discoveries for development. The majority of the world’s resources are in laterite ore bodies, hence Proto’s focus on lateritic nickel for production of downstream nickel products. Substantial nickel intersections known from drilling at Menzies include 11m @ 1.16% Ni and 0.07% Co, including 7m @ 1.39% Ni and 0.08% Co from 18 to 25m; 5m @ 1.00% Ni and 0.04% Co from 19 to 24m; and 14m @ 1.72% Ni and 0.13% Co, including 12m @ 1.92% Ni and 0.14% Co from 16 to 27m. The Menzies area has confirmed nickel laterite mineralisation and has significant potential for Yilgarn-style gold and komatiite/ultramafic-hosted/related nickel sulphides. Both Proto and Poseidon plan to develop mineable laterite and sulphide nickel resources and will now develop and undertake the next stage of the exploration program, with the initial intent of following up on the mineralisation already identified. The program will involve extending geochemical coverage and embarking on an aggressive drill program aimed at extending known nickel mineralisation, with a view to defining an inferred resource. The JV partners said they also plan to collect airborne electromagnetics (VTEM) in the project area to target nickel sulphides and assist basement interpretation.