St George Mining Ltd (ASX:SGQ) has commenced a new airborne magnetic survey over the high grade nickel-copper sulphide Mt Alexander Project in Western Australia.
All granted Mt Alexander tenements comprising an area of 174 square kilometres will be covered by the survey.
The aim is to identify new ultramafic belts and other priority targets for massive nickel-copper Sulphides.
John Prineas, executive chairman, commented: “Our successful exploration at the Cathedrals Belt has confirmed an extensive, high grade nickel-copper system at Mt Alexander.
“The new survey has the potential to identify additional high priority targets over a broader area, which would significantly increase the value of our project.”
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 four granted exploration licences – E29/638, E29/548, E29/962 and E29/954.
The Cathedrals, Stricklands and Investigators nickel-copper discoveries are located on E29/638, which is held in joint venture by Western Areas Ltd (25%) and St George (75%).
St George recently received assays from its maiden drill program confirming high grade nickel-copper sulphide mineralisation at the Investigators prospect.
One hole intersected over 13.5 metres of mineralisation with a high grade interval grading up to 7.93% nickel, 2.75% copper and 4.81 g/t platinum group elements (PGEs).
Analysis
The survey is an important exploration initiative that will look to add significant value to the Mt Alexander Project.
The small amount of recent drilling completed within Mt Alexander has already suggested there is strong exploration upside to extend and discover further mineralisation within the project.
Significantly, the mineralisation drilled out is located at shallow depths between 25 metres to 125 metres below surface.
The combination of shallow depth and high grades of nickel, copper and PGEs is likely to be very favourable for the economics of any potential mining operation at the Mt Alexander Project.
Shares in St George are trading up 80% year to date, currently priced at $0.13.