St George Mining Ltd (ASX:SGQ) could be on the cusp of a gold discovery at the wholly-owned East Laverton Project in Western Australia.
Drilling at Ascalon has extended the size of the large hydrothermal system with an anomalous gold horizon extending over 2000 metres.
The importance of this are that the features St George are seeing at the Ascalon and Bristol prospects are typical of large gold-mineralised systems.
John Prineas, executive chairman, commented:
"Our detailed technical review of the results from the initial gold drilling is favourable and gives us confidence to advance exploration at these highly prospective gold targets."
Elephant country
The East Laverton Project is near the two most recent world-class gold discoveries in Western Australia, being Tropicana with over 8 million gold ounces and Gruyere with over 6 million gold ounces.
East Laverton is underexplored for gold, with shallow drilling already having identified widespread anomalous gold - this confirms its prospectivity - and large scale potential.
This is proven by the most recent drilling.
Analysis
Investors are showing strong support for Prineas, as he continues to increase the valuation of the company.
St George is now worth circa $40 million following recent exploration success, compared to just $10 million a year ago.
Add to this the company has been attracting new institutional shareholders, along with retail, and now has a very diverse register comprising 2400 shareholders.
St George is therefore well-funded to deliver further exploration success across a portfolio of gold and nickel projects.