St George Mining (ASX:SGQ) continues to identify widespread occurrences of disseminated nickel sulphides at its Windsor prospect in Western Australia with new drilling intersecting thick mineralised ultramafic material.
This included an interval of high-MgO ultramafic 215 metres thick from 58 metres and disseminated nickel sulphides with values up to 0.73% nickel.
The drilling confirms that the mineralised ultramafic extends both north and south of the prospect’s discovery hole, which intersected 30 metres at 0.31% nickel from 108 metres, including 8 metres at 0.44% nickel from 130 metres and 2 metres at 0.62% nickel from 132 metres.
The large, high-MgO komatiite ultramafic unit at Windsor is open laterally and at depth. The unit is interpreted to extend over 2 kilometres with only 200 metres tested by drilling so far.
Six drill holes have been completed so far at Windsor for a total of 1,998 metres of drilling.
A conclusive determination of the metal content in holes already drilled at the site will be confirmed as the processing of the holes is finalised and when laboratory assays are available.
Ongoing drilling to test a basal contact is expected to be completed in about 15 days and followed by downhole electromagnetic (DHEM) survey work.
East Laverton exploration
The drilling at Windsor represents part of St George’s development of the East Laverton project, which is located 230 kilometres northeast of Kalgoorlie in the underexplored and highly prospective eastern margin of the Yilgarn Craton.
This large and strategically dominant landholding is comprised of a tenement package extending over 2,000 square kilometres with tremendous potential to host new and significant nickel sulphide, gold and VMS-style base metal deposits.
St George has also readied a drill campaign at the project’s Desert Dragon North area with identification of a highly prospective off-hole electromagnetic conductor.
Nickel sulphide mineralisation was first encountered at Desert Dragon North in 2012 by St George in 2012, when the company intersected nickel sulphide stringers including 2 metres at 1.1% nickel from 55 metres; and 2 metres at 0.4% nickel from 59 metres.
While the DHEM surveys are being conducted, the drill rig will move north to Desert Dragon to commence drill testing of priority EM targets. A further announcement regarding these highly prospective EM conductors will be made shortly.
The drill rig will remain available to return to Windsor for drill testing of any conductors identified in the DHEM surveys.
Analysis
The latest drilling results from Windsor add significant confidence to a mounting body of evidence regarding the prospect’s widespread occurrences of disseminated nickel sulphides and PGE sulphide enrichment.
Confirmation of the presence of this enrichment strongly supports the potential for massive nickel sulphide mineralisation at Windsor.
This geology is considered a textbook setting for a massive nickel sulphide deposit and suggests St George’s systematic approach to exploration at Windsor may result in an important discovery.
Investors have supported St George’s success so far, lifting the company’s share price about 80% in the past two months to around A$0.105.
More potential price catalysts for the company appear likely to develop as drilling finalises at Windsor and DHEM survey work gets started.
Also, more drilling at Desert Dragon is expected to further strengthen the broader East Laverton project.
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