St George Mining (ASX:SGQ) has now commenced a high-impact 7000 metre reverse circulation drilling program at its East Laverton Project in Western Australia.
Drilling with test priority nickel sulphide targets including electromagnetic (EM) conductors, providing multiple opportunities for a new discovery.
Windsor is currently being drilled, to be followed by drill testing at Desert Dragon. The program will take 6‐7 weeks to complete.
Drilling at Windsor by St George has confirmed a large high MgO komatiite ultramafic that is interpreted to extend over 2 kilometres.
The unit hosts high tenor disseminated nickel sulphides, which are open laterally and at depth.
Importantly, all drill holes that have tested the eastern contact of the ultramafic at Windsor have intersected disseminated nickel sulphides and/or PGE enrichment - both of which may represent a halo to massive sulphides.
John Prineas, executive chairman, commented:
“We are very pleased to have started drilling at Windsor where we believe the opportunity for exploration success is high.
“Drilling of the ultramafic unit here has already intersected disseminated nickel sulphides over a 200 metre strike length in what is shaping up as a classic setting for komatiite hosted massive nickel sulphide deposits.”
Desert Dragon prospects will also be drilled.
Analysis
While St George will be highly leveraged to drilling success, a plus 50% gain in the share price since August shows "smart-money" is already entering the stock.
With 7000 metres of drilling, news flow will remain strong over the next two months as updates on drilling and then assays are revealed.
A discovery of nickel sulphides at Windsor was made by BHP Billiton Nickel West in 2012, and outlines the prospectivity of the area.
This included: 30 metres at 0.31% nickel from 108 metres, including 8 metres at 0.44% nickel and 2 metres at 0.62% nickel, and established the presence of a fertile komatiite ultramafic.
The company has a tight capital structure with around 137 million shares on issue, with management holding 8%.
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