St George Mining Ltd’s (ASX:SGQ) shares were trading 73% higher intra-day after intersecting outstanding nickel-copper sulphide mineralisation at its Mt Alexander Project in Western Australia.
The company’s drill hole (MAD71) at the Stricklands Prospect has intersected:
- 17 metres of nickel-copper sulphide mineralisation from 37.5 metres downhole comprising massive, matrix, stringer, brecciated and disseminated nickel sulphides; with
- massive nickel-copper sulphides comprising a total of 10.1 metres of the overall intersection.
John Prineas, executive chairman, commented: “The results in MAD71 are outstanding with thick widths of high grade mineralisation at shallow depths.
“This is very favourable for the economics of a potential mining operation at Mt Alexander.
“We have already established recurrent high grade mineralisation over a 3.5 kilometre strike length in the Cathedrals Belt.
“Now, with the exceptional intersection in MAD71, the confidence in the resource potential at Mt Alexander continues to build.”
Thick interval of nickel-copper sulphide mineralisation intersected
A fixed loop electromagnetic (EM) survey was completed earlier this year by St George and identified a very large EM anomaly (200 metres x 150 metres) at the Stricklands Prospect.
The EM anomaly was tested by the new hole which intersected a 42.5 metres thick ultramafic unit with:
- 18.86 metres at 0.42% nickel, 0.16% copper and 0.02% cobalt from 31.8 metres; and
- 3.36 metres at 2.09 % nickel, 1.18% copper, 0.09% cobalt and 1.82 g/t total platinum group elements (PGE) from 50.66 metres.
Geochemical analysis from portable XRF readings from the drill hole supports the geological logging that the mineralisation is primary magmatic sulphides based on high sulphur values.
A conclusive determination of the nickel, copper, cobalt and PGE values of the sulphide mineralisation will be confirmed when laboratory assays are available.
Drilling continues across the project
St George’s drill targets are located along a 4.5 kilometre strike length of the Cathedrals Belt and include targets at each of the Cathedrals Prospect, the Stricklands Prospect and the Investigators Prospect.
A downhole electromagnetic survey will be completed on the latest drill hole later this week, and further drilling at Stricklands will be prioritised after review of the survey data.
Meanwhile, a diamond drill rig has now mobilised to the Investigators Prospect.
The first two drill holes to be completed at Investigators will target off-hole electromagnetic anomalies to test for extensions of known zones of high grade mineralisation.