St George Mining (ASX:SGQ) has started drilling at the Dragon 9 massive nickel sulphide target within the Desert Dragon Central prospect at its wholly-owned East Laverton Nickel Sulphide Project in Western Australia.
Dragon 9 is an exceptionally powerful electromagnetic conductor.
This is modelled as co-incident with the basal contact of the large ultramafic channel that hosts the nickel sulphide mineralisation intersected at drill hole DRAC35.
Target depth is expected to be reached by the end of this week.
The known presence of nickel sulphides in this channel increases the potential of the ultramafic contact, which is the priority surface for exploration, to host massive nickel sulphide mineralisation.
John Prineas, executive chairman, commented:
“We have a great pipeline of high quality prospects for massive nickel sulphides, and the Dragon 9 conductor is probably the clear standout amongst the targets chosen for the current drilling campaign.
“We are very excited to have started drilling at this very promising target.”
Dragon 9 Details
The electromagnetic conductor is modelled by geophysical advisors Newexco as having a very high conductance of 4900 Siemens, an especially long time decay of 443ms and a strike length of approximately 500 metres.
These features are permissive of a discrete massive nickel sulphide body.
Significantly, the conductor is situated within a prominent fold closure of the Stella Range belt, a structural setting which is a favourable site for the potential accumulation of massive nickel sulphide mineralisation.
Recent Activity
A strong off-hole conductor has been identified by the downhole electromagnetic (DHEM) survey completed at drill hole DDRDD0004.
Initial interpretation of the survey data by Newexco indicates that the off-hole conductor is situated below and right of the hole.
Peak amplitude of the conductor is approximately 235 metres down the hole.
Hole DDRDD0004 was drilled from a similar collar to that used for DRAC35 but towards the east.
DRAC35 was drilled to the west by BHP Billiton Nickel West in 2012 and intersected 18 metres at 0.40% nickel from 100 metres including 4 metres at 0.56% nickel from 100 metres.
The ongoing geological interpretation at Desert Dragon Central, which is supported by interim results from the current drilling campaign, indicates a more favourable geological environment for nickel sulphides towards the eastern section of this prospect.
The nickel sulphide zone intersected in DRAC35 is interpreted to potentially extend and increase to the east.
Further modelling of the conductor will be completed once assays are received for DDRDD0004 and a drill hole will be designed to test this new target for massive nickel sulphides.
St George has also completed hole DDRDD0002 that was drilled to test the gravity anomaly at Dragon 13 and the underlying EM plate DD-DDN-03.
Geological logging and XRF analysis of the drill core is ongoing.
Continuation of 2015 drilling campaign
After completion of the current diamond drilling program, the 2015 drilling campaign will move to a reverse circulation drilling program.
Over 5,000 metres of drilling is planned in this program to follow-up positive drilling results and test new targets, including new DHEM conductors.
A Programme of Works for initial drilling has been approved, and a preferred drilling contractor has been selected.
Drilling under this program will commence in late August to early September 2015.
The Windsor nickel sulphide prospect is one of the prospects that will be included in this drilling.
Drilling at this prospect in 2014 identified further high tenor disseminated nickel sulphides over a 200 metre strike length, within a large high-MgO ultramafic channel.
The magnetic data for this area indicates the ultramafic channel may extend over 2 kilometres.
The prospective contact of the channel remains largely untested by drilling, with substantial exploration upside.
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