St George Mining Ltd (ASX:SGQ) has achieved its objective of discovering nickel‐copper sulphide at the Mt Alexander Project in Western Australia.
Shares are expected to open higher.
The discovery was made at Stricklands Prospect from drilling two previously untested downhole electromagnetic (DHEM) conductors.
The mineralised ultramafic unit is located only 50 metres below the surface
This outlines the potential for a large mineralised zone at Stricklands, which will be further investigated by DHEM surveys and drilling.
John Prineas, executive chairman, commented:
“Our continued exploration success in the Cathedrals Belt confirms that this is a highly mineralised belt with strong prospectivity for additional nickel-copper sulphide discoveries.
“The results at Stricklands appear to be the best intersections to date outside Cathedrals and are very promising for the economic potential of the area.
“The effectiveness of our combined EM and geological targeting in the Cathedrals Belt makes the strong conductors at Investigators very compelling targets, and we are excited to be commencing the first ever drilling at Investigators today.”
Drilling details
Both new drill holes have intersected significant intervals of massive nickel-copper sulphides where predicted by the modelled EM conductors.
- MAD26 was completed to a downhole depth of 105.1 metres and intersected 4 metres of massive nickel-copper sulphide mineralisation from 53.9 metres. Spot XRF readings range from 3% nickel to 7% nickel and 0.7% copper to 1.4% copper.
- MAD27 was completed to a downhole depth of 148 metres and intersected 2 metres of massive nickel-copper sulphide mineralisation from 71.25 metres. Spot XRF readings range from 2% nickel to 7.9% nickel and 1.2% copper to 6.9% copper.
Above the massive sulphide is 10 metres of ultramafic with intermittent disseminated and stringer sulphide mineralisation.
Analysis
The successful drilling at Cathedrals and Stricklands has significantly increased the nickel-copper sulphide system at Mt Alexander.
This could be substantially expanded by the imminent drilling at the Investigators Prospect.
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