The Windarra project comprises the Mt Windarra, Cerberus and South Windarra nickel resources, along with the Windarra gold tailings project (see Development Assets [HYPERLINK]). Mt Windarra and South Windarra were previously mined from 1974 through to 1983 producing 84kt Ni metal.
Western Mining Corporation (WMC) and the original Poseidon NL discovered nickel mineralisation in the belt in the late 1960’s and up until the late 1980’s had completed 15,180 drill holes for ~477km of drilling during ownership of the project. Windarra operated from the 1970’s through to the mid-1990’s, producing over 114kt contained nickel.
Since acquiring Windarra in 2007, Poseidon has completed over 550 drill holes for ~70km of drilling in order to bring the historic mine resources into JORC compliant status, as well as the discovery and delineation of a new resource at Cerberus. Additionally, Poseidon has delineated a 183koz gold and 670koz silver resource within the Mt Windarra tailings.
The combined nickel resource at Windarra totals 9.7Mt at a grade of 1.5% nickel for 148.5kt Ni, which includes the Mt Windarra resource, 4.36Mt at a grade of 1.64% nickel for 71.5kt Ni, and Cerberus resource, 4.55Mt at a grade of 1.51% nickel for 69kt Ni.
The project is located in the Mt Margaret Goldfields of Western Australia and is situated about 25km north west of Laverton.
NICKEL EXPLORATION
Despite WMC’s previous ownership of Windarra, the project is considered underexplored with less than 4km of the 21km belt having had focused and detailed exploration completed in the past. Noting the significant opportunity across the remainder of the Windarra tenements the company engaged Mark Muller from Muller Geological Services Consultancy (MGSC) in late 2023 to undertake a review of the nickel exploration potential at Windarra.
The geological assessment completed by MGSC focussed on the basal contact between the Mt Windarra and Cerberus resources, representing 10km of the 21km belt. The greenfields assessment incorporated information gained from relogged drillholes, lithogeochemical verification, geophysical reviews, field checks and resampling programs.
From this review, the updated basal model identified six discrete embayed channel structure targets based on drillhole coding and geological interpretations. These channel surfaces were named in order from south (Cerberus) to the north (Mt Windarra) as NW01 to NW06. Four of the channel structural trends where historically recognised and include; the NW01 (formerly known as Crazy Diamond), NW02 (Weebo Well Embayment), NW03 (Weebo Well) and NW06 (Mt Windarra South), each with lower priority follow up work planned.
The figure below shows the location of the six new nickel sulphide channel targets, with the new targets NW04 and NW05 noted separately.
Nickel exploration activities are on hold at Windarra pending an improvement in the nickel price outlook.
GOLD EXPLORATION
Following the conclusion of the Windarra State Agreement, Poseidon was able to extend its exploration efforts beyond nickel and during 2024, assessed the potential for other commodities at northern Windarra, focusing on gold. The review noted soil sampling from 2010, which identified a series of low-order gold anomalies along a consistent trend parallel to structural controls in the area. Two anomalies were identified, the Western anomaly which is approximately 6km x 0.7km in size (Max Au 460ppb) and the Eastern anomaly which is approximately 4km x 0.3km in size (Max Au 16ppb).
These anomalies align with the regional structural framework controlling fluid flow and gold mineralisation around a large granitoid intrusive. The Windarra Project is located on the western side of this granitoid, with the Beasley Creek group of mines (total endowment of 1.2Moz Au) to the south and the Lancefield group of mines (total endowment of over 4Moz Au) to the east.
Exploration to the east of Windarra has identified gold mineralisation with Magnetic Resources reporting significant results, including hole LJA0035 which intersected 2m @ 110g/t Au from 38m (drilled by Metex Resources Limited in 2005)1. The clear structure hosting the mineralisation extends into the Windarra Project and is supported by coincident gold and multi-element soil anomalies along a 15km aeromagnetic feature.
Due to the Windarra State Agreement and a prior focus on nickel exploration, previous drilling was typically not sampled for gold and did not specifically target gold mineralisation. Limited historical drilling has only partially tested these anomalies with just two holes returning anomalous gold. The best being hole PNRC0278, which intersected 1m @ 0.5g/t Au from 34m 2, located on the Western anomaly.
The Windarra project is located within the Laverton gold region and proximal to a number of existing gold producers. Any future gold resource discovery at Windarra would be highly leveraged to these nearby gold producing operations.
1 refer to Magnetic Resources (ASX: MAU) ASX announcement “Bonanza Grades of 2m @110g/t Gold from Historical Drilling at the Marabou Project” dated 18 April 2016
2 refer to Poseidon Nickel Limited (ASX:POS) ASX Announcement “Gold and Nickel Targets at Windarra” dated 6 June 2024
1 refer to Poseidon Nickel Limited (ASX:POS) ASX Announcement “Copper-Gold and Lithium Targets at Lake Johnston Enhanced” dated 8 October 2024
2 refer Poseidon Nickel Limited (ASX:POS) ASX Announcement “Update on Gold Exploration Programs” dated 30 July 2024
LITHIUM EXPLORATION
Recent soil sampling at Lake Johnston has identified two lithium targets, located in the northeast and southern areas of the tenement holding.
Wide spread soil sampling conducted in 2024 across the northern section of E63/2244 identified a large, coherent Li2O anomaly characterised by >100ppm Li2O. This anomaly extends south of previously reported composite rock chips, which returned high grades ranging from 2.80% up to 3.85% Li2O3 (refer Poseidon Nickel Limited (ASX:POS) ASX Announcement “High Grade Lithium Bearing Pegmatites Located at Lake Johnston” dated 23 May 2016).
The anomaly’s central core, defined by >200ppm Li₂O, spans approximately 0.95km by 2.3km and remains open to the west. Within this core zone, a peak value of 495ppm Li₂O was recorded, coinciding with elevated rubidium (117ppm Rb), caesium (31ppm Cs), and tin (9ppm Sn).
In the south, anomalous lithium values (>100ppm Li20) were identified with coincident rubidium (Rb) and caesium (Cs) anomalism over a strike length of 3km. Lithium levels in the soils are comparable to those recently reported by other companies exploring for lithium bearing pegmatites in the Lake Johnston region.
The company entered into a Farm-in Agreement with Mantis Resources Pty Ltd in 2023 to earn up to a 100% interest in exploration licences 63/2244 and 63/2256.
3 refer to Poseidon Nickel Limited (ASX:POS) ASX Announcement “High Grade Lithium Bearing Pegmatites Located at Lake Johnston” dated 23 May 2016