St George Mining (ASX:SGQ) has intersected a thick mineralised ultramafic channel at the Stricklands Prospect within the Mt Alexander Project located in Western Australia.
Four holes in the major drilling program all intersected mineralised ultramafic rock including 22 metres of nickel sulphide mineralisation from 31.8 metres down hole.
Discoveries of shallow massive sulphides at Stricklands confirm the extensive mineralisation at this prospect and continue to build the case for a future economic mining operation.
John Prineas, executive chairman, commented: “The drill results at Stricklands confirm a thick mineralised ultramafic potentially with a strike over 170 metres and possibly more.
“This is consistent with the results from the SAMSON electromagnetic survey over Stricklands which identified a large electromagnetic anomaly.”
Stricklands Prospect results
The four drill holes completed at Stricklands are MAD49, MAD50, MAD51 and MAD52.
Details from the holes include:
- MAD49: 22 metres of nickel sulphide mineralisation from 31.8 metres down hole that included massive, matrix and disseminated nickel sulphides;
- MAD50: intersected the target ultramafic unit of 30.4 metres as well as 7.2 metres of nickel-copper sulphide mineralisation; and
- MAD52: intersected matrix and massive nickel-copper sulphides at depths.
The most important conclusion from the drill results at Stricklands is that a significant zone of channelized magma flow – which is the key control on nickel sulphide deposits - has been identified with the thickest part of the channel potentially located in the western section of Stricklands where MAD49 was drilled.
A priority for further exploration will be to test the interpreted down-plunge extents of the mineralised ultramafics at Stricklands to identify any continuity.
Investigators Prospect results
A hole has also been drilled at the Investigators Prospect, which is also a part of the Mt Alexander Project.
MAD48 was drilled at Investigators to a depth of 127.1 metres to test a downhole electromagnetic (DHEM) plate.
MAD48 intersected 2.08 metres of moderately disseminated, blebby and stringer sulphides and 0.91 metres of massive sulphide with spot XRF readings averaging 6% nickel and 3.1% copper.
A planned DHEM survey will assist to determine if the massive sulphide in MAD48 is an extension of the massive sulphide already identified by prior holes.
Elsewhere, DHEM surveys have been carried out on a number of the completed drill holes at Investigators with multiple strong off-hole electromagnetic conductors identified.
The new DHEM conductors are to be drill tested in the current drill program.
Mt Alexander
St George recently commenced a major drilling campaign at the Mt Alexander nickel sulphide project testing the Cathedrals prospect, the Stricklands prospect and the Investigators prospect.
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.
The program is testing new conductors and targets as well as targeting extensions to mineralised zones to establish a resource base.
Analysis
This latest batch of drilling results builds on recent success and continues to show that drilling is intersecting significant magmatic nickel-copper sulphides at shallow depths.
These results continue to be favourable for the economics of a potential mining operation at Mt Alexander.
When St George purchased this project from BHP Billiton (ASX:BHP), mineralisation had been established over a 400 metre strike, St George has increased that now to over 3.5 kilometres and still have only scratched the surface.
Drilling is ongoing at Mt Alexander and further results will be highly anticipated as they continue to reveal the project’s potential.
Shares have been steadily climbing year to date, up 14% to $0.16.
St George entered the current June quarter with a cash balance of $5.7 million leaving it well-funded to continue exploration.