St George Mining's (ASX:SGQ) first assays are in from the current hi-impact drilling program, and they confirm a wide zone of laterally continuous nickel sulphide mineralisation at Desert Dragon Central.
Initial results demonstrate a wide and continuous zone of disseminated nickel sulphide mineralisation, which is present from a shallow depth and importantly within the same ultramafic unit.
The nickel sulphide zone extends over 300 metres down dip and remains open in both directions
Highlights include:
- 7 metres at 0.39% nickel from 43 metres;
- 1 metre at 0.51% nickel from 56 metres;
- 2 metres at 0.44% nickel from 215 metres;
- 4 metres at 0.34% nickel from 220 meters; and
- 5.6 metres at 0.44% nickel from 231 metres.
The initial assay results for the drill holes at Desert Dragon Central demonstrate a wide and continuous zone of disseminated nickel sulphide mineralisation.
This is present from a shallow depth and importantly within the same ultramafic unit.
This mineralised unit is the fertile ultramafic initially identified by drill a hole completed by BHP Billiton Nickel West in 2012 which delivered:
- DRAC35: 18 metres at 0.40% nickel from 100 metres, including 4 metres at 0.57% nickel.
John Prineas, executive chairman, commented:
“The drilling at Desert Dragon Central has successfully extended the nickel sulphide mineralisation that was discovered by DRAC35.
"The mineralised zone is open to the north and south along strike, and has provided us with several massive nickel sulphide targets that we will schedule for priority follow‐up.
“This kind of geologically driven and systematic exploration is the foundation for most major discoveries, so the important progress we have achieved at Desert Dragon Central is very pleasing.”
Desert Dragon Central is within the company's wholly-owned East Laverton Property in Western Australia.
September drilling program
A reverse circulation drilling program is planned to commence in September 2015, and will follow-up targets for massive nickel sulphides generated by the current diamond drilling.
This includes the high priority DHEM conductors identified by Newexco at Desert Dragon North and at Desert Dragon Central.
Additionally, drill holes will be designed to further test the lateral extents of the nickel sulphide zone now well-defined within the fertile DRAC35 Ultramafic at Desert Dragon Central.
Drilling will also test targets at the Windsor nickel sulphide prospect where previously high tenor nickel sulphides have been intersected.
Analysis
Today's results are the first of many to flow through in coming weeks, and confirm a wide zone of laterally continuous nickel sulphide mineralisation at Desert Dragon Central.
Adding interest - a strong off-hole electromagnetic conductor provides a drill ready target for massive nickel sulphides.
The company had $1.6 million in cash at the end of June 2015.
Key catalysts:
- More assay results and downhole EM surveys are pending; and
- Follow‐up drilling of priority targets planned for September 2015.
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