Poseidon Nickel has intersected nickel sulphides outside the current known ore mineralisation boundary at the Windarra Nickel Project, with Niton readings indicating good grades.
The company is developing the first new nickel project in Western Australia for many years, with concentrate production targeted for 2014.
The Windarra Project is a higher grade nickel sulphide deposit that has already demonstrated high recovery levels through a standard nickel floatation concentrator.
High speed and diamond drill commissioning is proceeding well with over 600 metres drilled to date.
The initial objective, to be completed before the end of the year, is to test and commission a new type of drilling system to Australia which has, in other overseas applications, shown the potential to dramatically increase drilling rates compared to normal coring practices alone.
During this commissioning phase, Poseidon has completed a hole which intersected nickel sulphides about 20 metres beyond the defined mineralised shoot.
The intersection was 54 metres below and 90 metres above previous WMC intersections which defined the extent of the C Shoot mineralised ore body.
Poseidon has also undertaken preliminary scans using a handheld Niton XRF analyser which indicates an approximate zone of 3 metres at 1.4% nickel, including smaller higher grade stringers which are reporting up to 5% nickel.
The Niton scans indicate the presence of nickel sulphides outside of and adjacent to the current mineralised resource boundary, which has the potential to increase the size of the Mt Windarra resource as this area of the deposit was untested by WMC.