St George Mining (ASX:SGQ) has commenced a highly prospective drilling program testing of EM (electromagnetic) conductors for massive nickel sulphides at the wholly-owned East Laverton Property in Western Australia.
A strong downhole EM anomaly modelled in a basal position at Desert Dragon Central is the first EM conductor to be tested.
In total St George will drill six EM conductors - which all have the potential to deliver exploration success.
A second hole at Cambridge has been completed.
This will provide St George with strong newsflow in the near-term.
Also, an extension of the prospective high MgO zone on the eastern margin of Cambridge is confirmed.
Adding interest, St George recently attracted UK investment trust City Natural Resources High Yield Trust PLC as an investor, placing $500,000 with them - which at the time was a significant premium.
New City Investment Managers has a track record of successful investment in Australian resources companies, including an early stage investment in Sirius Resources (ASX:SIR).
East Laverton Nickel Sulphide Project
John Prineas, executive chairman, commented:
“Our drilling program has now entered a very exciting phase where we will be drilling high value targets for massive nickel sulphide mineralisation.
“At Desert Dragon Central, the known presence of nickel sulphides in this high MgO channel and the location of the EM target on the basal contact, significantly increase the potential of the downhole EM conductor to represent a massive nickel sulphide deposit.”
St George Mining holds a dominant 2,000 square kilometre landholding in this frontier region of Western Australia.
While BHP withdrew from the farm-in for corporate reasons, it left the company with a 100% ownership of all nickel rights as well as a $3 million dataset.
The mining giant’s work also established the credentials of the project for large scale nickel sulphide mineralisation.
The project has similar features to other highly mineralised komatiite nickel sulphide belts in the Yilgarn Craton.
Analysis
In total St George will drill six EM conductors - which all have the potential to deliver exploration success.
Considering a modest market cap of around $11 million, (of which over $1.5 million is cash), St George is leveraged to exploration success.
St George also recently attracted UK investment trust City Natural Resources High Yield Trust PLC as an investor, placing $500,000 with them.
City Natural has credentials including being an early investor into Sirius Resources.
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