Subiaco-based nickel explorer Poseidon Nickel and Proto Resources have formed a joint venture to explore at the Menzies nickel project.
The announcement is pasted below:
Poseidon Nickel and Proto Resources are pleased to announce that they 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 project is prospective for both Nickel Laterite and Nickel Sulphide mineralisation.
The rationale for the Joint Venture is:
- Tenements have proven nickel laterite intersections.
- The Menzies project contains 23sqkm of ultramafic rocks which are prospective for nickel sulphide exploration.
- Menzies is approximately 180kms from the potential concentrator plant to be built at Poseidon Nickel's Windarra Nickel Project.
- Proto Resources is currently developing the Barnes Hill Nickel Laterite project in Tasmania and is seeking additional laterite inventory for development from the Menzies Joint Venture.
- Poseidon & Proto believe that a jointly funded programme will accelerate exploration and that the two companies can provide project development opportunities and synergies.
Poseidon and Proto shall contribute in equal shares to the Joint Venture and shall each finance their share into production.
Proto currently holds the Project in Joint Venture with Cazaly Resources Ltd ("Cazaly"), holding 90% of the nickel laterite rights, 50% of the nickel sulphide rights and 70% of the gold rights.
Cazaly Resources will continue to hold its interests and will be free carried to completion of a bankable feasibility study.
The Menzies Nickel Project is a multi-commodity advanced exploration project including nickel laterite, nickel sulphide, cobalt and gold, previously worked by BHP.
The project consists of 36 tenements in a continuous block located 10km south of the township of Menzies, about 130km north of Kalgoorlie in Western Australia.
