St George Mining (ASX:SGQ) will commence drilling later this month as part of its 2017 gold exploration program at its 100% owned East Laverton Project in Western Australia.
The 2016 gold drill program was successful in identifying the potential for gold mineralisation at the Ascalon and Bristol gold prospects.
A technical review by gold experts has confirmed the strong gold potential at East Laverton, and prioritised multiple targets for exploration in 2017.
A reverse circulation drill program will commence later this month and will initially focus on the highest rated targets at Desert Dragon, Cambridge and Cambridge North prospects.
John Prineas, executive chairman, commented: “We will systematically progress gold exploration in 2017, working through the pipeline of attractive targets.
“With drilling due to start this month at both Mt Alexander and at East Laverton, we are entering a very exciting period for St George and its shareholders.“
Initial targets
Historical shallow drilling at the Cambridge North prospect area has intersected significant gold anomalism that warrants follow-up exploration.
Of particular interest are two drill holes that intersected 3 metres at 0.97 g/t gold from 27 metres and 3 metres at 0.51 g/t gold from 36 metres.
The Desert Dragon prospect was the highest ranked prospect in the technical review and has a number of compelling target areas for exploration.
Two prominent folds of the greenstone belt are situated in the Desert Dragon area, with a historical 6 metres at 0.70 g/t gold intersection located on the limb of southern fold.
Nickel drilling at Mt Alexander
St George is also set to commence a major drilling campaign this month 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.
Analysis
With two drill programs commencing this month, St George will be exposed to short term exploration based news flow related to multiple commodities.
The success of previous exploration methods at both projects suggests good potential for further discoveries.
Reconnaissance exploration has recognised the significant gold potential at East Laverton and this prospectivity has now been confirmed by one of Western Australia’s leading gold experts.
The East Laverton Project is surrounded by major gold mines with the 8+ million ounce gold Tropicana deposit to the east and the 6+ million ounce gold Gruyere deposit to the north and the world class Laverton gold field to the northwest.
The strong history of gold discoveries and favourable regional setting underlines the gold potential for the under-explored East Laverton Project to also host economic gold deposits.