St George Mining Ltd (ASX:SGQ) has now completed another two holes at its ongoing program at the Mt Alexander Project in Western Australia.
These holes have confirmed favourable geology for massive nickel-copper sulphide mineralisation.
The confirmation that ultramafics occur this far west in the previously unexplored Investigators Prospect supports the prospectivity of this area for further discoveries of massive nickel-copper sulphides.
John Prineas, executive chairman, commented:
“The new EM data continues to indicate that the conductors at Investigators are outstanding targets for massive nickel-copper sulphides.
“The drilling data from MAD29 and MAD30 has confirmed the presence of prospective ultramafic at Investigators, and that provides even more encouragement for potential new discoveries there.
“Drilling of MAD31 to test the re-modelled Anomaly 2 commenced yesterday afternoon, and we look forward to announcing results early next week.”
Stricklands Prospect
Earlier in the month St George discovered nickel-copper sulphides at the Stricklands Prospect, also within Mt Alexander.
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.
Mt Alexander
The Mt Alexander Project is located 120 kilometres south-southwest of the Agnew-Wiluna belt which hosts numerous world class nickel deposits.
The project comprises three granted exploration licences – E29/638, E29/548 and E29/962.
Cathedrals, Stricklands and the Investigators prospects 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
St George will continue to have steady exploration news flow as drilling is ongoing.
Shares in the company last traded at $0.20, or around three times higher than at the start of 2016.
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