Growth-focused Western Australian nickel company St George Mining (ASX: SGQ) has announced that laboratory assays have confirmed a significant intersection of high-grade nickel-copper sulphides at the Radar Prospect – the latest discovery at St George’s flagship Mt Alexander Project, located in the north-eastern Goldfields.
· Laboratory assays confirm thick intercept of high-grade nickel-copper sulphides in discovery hole for the Radar Prospect:
· MAD152, the first drill hole at the Radar Prospect, has returned assays that confirm a significant shallow discovery of nickel-copper sulphide mineralisation:
· 6m @ 2.14%Ni, 0.74%Cu and 1.62g/t PGEs from 46m including
· 2.55m @ 4.29%Ni, 1.46%Cu and 3g/t PGEs from 49.05m
· MAD152 was drilled into an electromagnetic (EM) conductor interpreted to be situated within the unexplored eastern extension of the mineralised Cathedrals Belt
· Downhole EM (DHEM) survey in MAD152 indicates that the hole has intersected only the northern portion of the EM conductor with increased strike and conductivity of the conductor to the south-west
· Drilling at Radar will re-commence this week with step-out holes planned to test for updip and down-dip extensions to the high-grade mineralisation
· Scoping studies initiated to assess a potential mining proposal at Mt Alexander:
· Environmental base line studies underway
· Further scoping studies in regard to a potential mine development will commence shortly
The new discovery is located 1.2km east of the known nickel-copper sulphide deposits at the Cathedrals Prospect and extends the east-west strike of high-grade mineralisation on the Cathedrals Belt to 5.5km.
John Prineas, St George Mining’s Executive Chairman, said: “Exploration drilling continues at Mt Alexander with the drill-out of the Radar discovery scheduled to resume this week.
“With high-grade mineralisation now established over a 5.5km strike of the east-west oriented Cathedrals Belt, we are increasingly confident of the potential to develop a potential mining operation at the Project.
“More than 10.5km of the Belt remains underexplored with strong targets emerging at Fish Hook and West End, which are also scheduled for drilling in this drill programme.
“Exploration success here could add substantial volumes of mineralisation to a potential resource at Mt Alexander.
“The strong rally in the nickel price over recent months is likely to be very favourable for the project economics of a potential development at Mt Alexander, and we are pleased to initiate preliminary studies to assess a potential mining development at Mt Alexander.”