Poseidon Nickel Ltd (ASX:POS) will step into lithium exploration at its Lake Johnston nickel project after locating high grade lithium bearing pegmatites within the project confines, located 440 kilometres east of Perth.
The reconnaissance field work located numerous samples that returned assay results grading from 2.80% to 3.85% Li2O.
While nickel will remain the focus, the discovery of the lithium pegmatites provides Poseidon with a handy lithium "play" in its own backyard.
As a result of the recent shortage in global lithium supplies, Poseidon had commenced a program of sampling historically identified outcroppings as well as the pegmatites exposed during mining at the Maggie Hays and Emily Ann underground mines.
The historical drilling and mining at Maggie Hays and Emily Ann mines intersected abundant, thick pegmatite dykes which were previously considered waste material and have not been sampled for lithium.
The latest analysis of pegmatite material from the Maggie Hays underground mine shows favourable mineralogy for the potential development of nearby lithium mineralisation.
Poseidon will commence a detailed interpretation and sampling programme using the extensive pegmatite drill core stored in the core yard as well as exposed pegmatites within the Maggie Hays mine.
As at 31 March 2016, Poseidon had a cash balance of $2.5 million.
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