St George Mining (ASX:SGQ) is set to advance its Desert Dragon Central nickel property in Western Australia next week, with a drill program aimed at a number of targets highlighted in recent encouraging survey work.
The drill targets will test priority electromagnetic conductors and geological targets as part of the 7,000m campaign scheduled to start on Monday at the company’s East Laverton nickel sulphide project.
Three conductors have been identified in the area by downhole electromagnetic (DHEM) surveys completed on recent diamond holes.
Assays delivered at Desert Dragon last month confirmed a wide continuous nickel sulphide zone within a large and highly prospective komatiite channel that remains open along strike. The nickel sulphide zone extends over 300 metres down dip and remains open in both directions.
This mineralised unit is related to the fertile ultramafic initially identified in 2012 by BHP Billiton (ASX:BHP) with a drill hole returning 18 metres at 0.40% nickel from 100 metres, including 4 metres at 0.57% nickel from 100 metres.
Earlier this month, St George moved to acquire BHP’s Hawaii and Mt Alexander North nickel projects in WA’s world-class Agnew-Wiluna belt.
These acquisitions will neatly complement St George's East Laverton flagship and increase the probability of making an additional nickel sulphide discovery.
Upfront cash costs of $40,000 were minimal with a royalty payable to BHP only on successful mineral production, allowing the company to dedicate resources to exploration work.
Analysis
The start of drilling at Desert Dragon emphasises St George’s success rate in generating attractive exploration targets for massive nickel sulphides in an area recognised as prospective by BHP.
The targets to be drilled next week are considered robust, with geophysical, geological and geochemical indicators consistent with massive sulphide bodies.
The systematic approach being undertaken by St George is the foundation for most major discoveries.
The ultramafic rocks at East Laverton are compositionally similar to the ultramafics at the Agnew-Wiluna belt, the most significant nickel belt in Western Australia with several world class nickel sulphide deposits.
This is important because it suggests that East Laverton could host nickel sulphide mineralisation on a scale similar to Agnew-Wiluna, which has hosted world-class operations such as the Perseverance, Rocky’s Reward and Cosmos mines.
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