St George Mining (ASX:SGQ) has identified significant gold potential at its wholly-owned East Laverton project in Western Australia.
The North Eastern Goldfields have recently yielded discoveries such as Tropicana's plus-8 million gold ounces, and Gruyere's plus-5 million gold ounces.
St George’s East Laverton is also situated within this highly prospective but under-explored area.
Taking a broader view, the Yilgarn Craton has an endowment of over 300 million gold ounces and is truly a world class gold province.
St George has now completed a review of exploration data with the new Ascalon gold target identified on the high priority Minigwal greenstone belt.
The company said that it had a strong portfolio of key gold targets with multiple other gold targets under review, and will undertake a major gold-focused drilling early in 2016.
John Prineas, executive chairman, commented:
“The gold targets have been generated by utilising a substantial amount of technical data from our ongoing field work. These are very robust targets, supported by multiple layers of technical data.
“Our technical team believe the new Ascalon target, in particular, is as good as any other major gold project in the Yilgarn at this early stage of exploration.
This is very encouraging and indicates the enormous gold potential at our project.
”We are very pleased to be able to escalate exploration of these strong gold targets, which will complement our advanced portfolio of nickel sulphide prospects.”
Analysis
St George will now look to unlock gold potential from East Laverton, as the area to the east of the Laverton gold camp (+40M gold ounces) has received little modern exploration.
This is due to previous remoteness and the much greater extent of post-mineralisation cover in this area.
St George is now ready to change this with a targeted gold drilling program in early 2016.
Escalation of gold exploration alongside advanced nickel sulphide prospects provides a diversified commodity exposure.
This will ensure strong news flow for St George in coming months.
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