What Are the Key Details of Poseidon Nickel's Farm-In Agreement with Mantis Resources?

$POS What Are the Key Details of Poseidon Nickel's Farm-In Agreement with Mantis Resources?

Poseidon Nickel Advances Lithium Exploration with Strategic Farm-In Agreement

Poseidon Nickel Limited, a prominent player in nickel sulphide exploration and development, has taken a significant stride in diversifying its mineral portfolio. The company recently announced a strategic farm-in agreement with Mantis Resources Pty Ltd to acquire up to 100% interest in two exploration licenses near its Lake Johnston Project.

Key Details of the Farm-In Agreement

The agreement with Mantis Resources encompasses exploration licenses 63/2244 and 63/2256, known as the "Mantis tenements." These tenements are noted for their outcropping lithium-bearing pegmatites, with historical composite sampling revealing high lithium grades, ranging from 2.80% to 3.85% Li2O.

Poseidon's move to farm into these tenements is driven by the intent to leverage the lithium potential at Lake Johnston. This strategic acquisition is set to enrich Poseidon’s portfolio and position it as a significant player in the lithium market.

Historical Context and Exploration Efforts

Poseidon's interest in lithium is not new. ... Back in 2016, the company undertook lithium exploration in the northeast area of the Lake Johnston Project. These efforts yielded positive results, uncovering high-grade lithium-bearing pegmatites.

However, due to the rejection of efforts to extend the term of the exploration license by the Department of Energy, Mines, Industry Regulation, and Safety, Poseidon had to surrender its original tenement. The new Mantis tenements, recently granted, offer a renewed opportunity to explore these promising lithium resources.

The Strategic Significance of Lake Johnston's Infrastructure

The value of Poseidon's existing infrastructure at Lake Johnston, particularly the 1.5Mtpa process plant, is heightened by the increasing exploration activities for lithium in the region. This infrastructure, coupled with the new exploration licenses, places Poseidon in a strong position to capitalize on the burgeoning lithium market.

Next Steps for Poseidon

The initial phase of exploration on the Mantis tenements will focus on low-cost soil and grab samples to validate the historical lithium results. Poseidon also plans to continue its exploration programs over its wholly-owned tenements at Lake Johnston.

About Poseidon Nickel Limited

Poseidon Nickel Limited, listed on the ASX under the code POS, has a robust presence in the Western Australian Goldfields region. With a resource base of over 420,000 tonnes of nickel and 180,000 ounces of gold, Poseidon's strategy centers on restarting its established nickel operations and exploring for additional resources.

The company owns the Black Swan, Lake Johnston, and Windarra Nickel Projects, each boasting significant exploration opportunities and existing infrastructure. Poseidon's recent Bankable Feasibility Study on Black Swan and a Definitive Feasibility Study on retreating gold tailings at Windarra and Lancefield reflect its commitment to profitable and sustainable operations.

With this strategic farm-in agreement, Poseidon Nickel Limited is set to expand its footprint in the lithium sector. This move not only diversifies its mineral portfolio but also enhances the value of its existing assets and infrastructure. The exploration and potential development of the Mantis tenements represent a new chapter in Poseidon's journey, marking its transition into a multi-commodity resource company.

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