St George Mining (ASX:SGQ) will commence a major drilling campaign next week at the emerging Mt Alexander nickel sulphide project located in Western Australia.
Drill results from Mt Alexander during 2016 suggest it could be an emerging new nickel camp with potential for multiple deposits.
Multiple new discoveries in 2016 have established recurrent mineralisation over 3.5 kilometres of strike.
With the nickel price continuing to rally off its lows in 2016, St George is well positioned to continue developing Mt Alexander.
The upcoming 19-hole drill program will test new conductors and targets as well as target extensions to mineralised zones to establish a resource base.
Mt Alexander
During 2016 St George acquired the Mt Alexander project, which 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 (ASX:WSA) (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.
Drilling by St George in 2016 intersected nickel, copper and platinum group elements (PGEs) mineralisation in every electromagnetic conductor.
Fresh nickel-copper sulphides were discovered at shallow depths from 30 metres below surface.
High grade mineralisation
Significant intersections from Mt Alexander to date include:
Cathedrals Prospect
- 3.95 metres at 5.05% nickel, 1.55% copper, 0.11% cobalt and 4.44 g/t PGEs from 91.4 metres with a thick halo of stringer and disseminated sulphide mineralisation of 9.25 metres at 0.76% nickel, 0.34% copper, 0.03% cobalt and 0.93 g/t PGEs; and
- 2.09 metres at 6.06% nickel, 2.47% copper, 0.17% cobalt and 4.41 g/t PGEs from 29.25 metres with a thick halo of stringer and disseminated sulphide mineralisation of 9.75 metres at 0.34% nickel, 0.11% copper, 0.01% cobalt and 0.3 g/t PGEs from 47.5 metres.
Stricklands
- 4.3 metres at 4.26% nickel, 2.02% copper, 0.19% cobalt and 3.21 g/t PGEs from 53.9 metres; and
- 2 metres at 4.17% nickel, 3.11% copper, 0.21% cobalt and 3.35 g/t PGEs from 71.25 metres, and a thick halo of stringer/ disseminated sulphide mineralisation with assays of 11.15 metres at 0.52% nickel, 0.63% copper, 0.03% cobalt and 1.69 g/t PGEs from 60.1 metres.
Investigators
- 1.57 metres at 6.26% nickel, 2.71% copper, 0.18% cobalt and 4.91 g/t PGEs from 91.4 metres; and
- 1.92 metres at 4.58% nickel, 1.52% copper, 0.14% cobalt and 3.83 g/t PGEs from 51.6 metres, and a thick halo of stringer/ disseminated sulphide mineralisation with assays of 7.6 metres at 0.44% nickel, 0.19% copper, 0.02% cobalt and 0.59 g/t PGEs from 44 metres.
Analysis
St George is entering a busy phase with the upcoming major drill program ensuring the company remains leveraged to short term news flow.
The success of previous exploration methods suggests good potential for further high grade discoveries.
Any delineation of a sizeable resource bodes well for project economics with metallurgy results supporting production of a high quality, smelter-friendly concentrate.
Furthermore, the project is proximate to existing processing plant, roads and power.
Copper sulphides were first discovered by BHP Billiton at the under-explored Mt Alexander in 2008 with little other exploration taking place until 2016.
With nickel being a major component used in the manufacturing of lithium-ion batteries and the nickel price continuing to rally off its 2016 lows, this is an opportune period for nickel explorers.