St George Mining Ltd (ASX:SGQ) is poised to increase exploration news flow, as the company prepares to drill electromagnetic (EM) conductors at the Mt Alexander Project in Western Australia.
A diamond drill program has been planned for Mt Alexander and is scheduled to commence in mid-April 2016.
Drilling will target untested EM conductors at the Cathedrals and Stricklands Prospects that coincide with magnetic anomalies.
John Prineas, executive chairman, commented: “The testing of EM conductors at Cathedrals has a 100% success rate to date.
"This makes the untested EM conductors at Cathedrals, and along strike at Stricklands, high conviction targets for the discovery of more massive nickel-copper sulphides.
“The upcoming drill program will also test the continuity of the high grade mineralisation already discovered at Cathedrals.
“A surface EM program, which will test magnetic anomalies west of Stricklands and to the north of Cathedrals, could provide further walk‐up drill targets.
“We are looking forward to commencing the drilling and EM surveys and to reporting on important exploration milestones.”
Mt Alexander background
BHP Billiton Nickel West drilled three EM conductors at Cathedrals in 2008 and all three were confirmed as high grade nickel-copper sulphide mineralisation.
The untested EM conductors to be drilled by St George next month have similar geophysical responses to the massive nickel-copper sulphide EM conductors drilled in 2008, and are also located within the Cathedrals shear zone.
Mt Alexander comprises two granted exploration licences – E29/638 and E29/548.
The Cathedrals nickel-copper discovery and the Stricklands Prospect are located on E29/638, which is held in joint venture by Western Areas Limited (25%) and St George (75%).
St George is the Manager of the project with Western Areas retaining a 25% non-contributing interest in the project (in regard to E29/638 only) until there is a decision to mine.
Analysis
The Mt Alexander Project is located south-west of the Agnew-Wiluna belt where several world-class nickel sulphide and gold deposits have been discovered.
The new drilling follows the company's strategy of targeting underexplored projects that are prospective for world-class deposits, and to conduct systematic and disciplined exploration.
St George was recently well-supported in a $2.1 million capital raising program.
Terry Streeter, who has an outstanding record of success in the WA nickel sector, recently became a major shareholder.
Shares in the company last traded at $0.095, or close to 40% higher than where it started 2016.
St George is now leveraged to upcoming news flow.
Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.