Growth-focused Western Australian nickel company St George Mining Limited (ASX: SGQ) is pleased to provide an update on exploration and development activities at its flagship high-grade Mt Alexander Project, located in the north-eastern Goldfields.
Hole MAD206 was completed to 1,003.9m downhole to test the seismic target S1. The hole successfully intersected the Cathedrals Belt structure that hosts intrusive style mafic rocks at location predicted by seismic survey. A review of drill hole data is underway to determine the source of the large seismic reflector represented by S1.
Drilling of other seismic targets continues, with MAD207 in progress to test target S2. Additional seismic surveys are planned following strong results from the initial survey.
At the same time, St George is advancing the Stricklands starter mine proposal. A metallurgical programme is developing a flowsheet for the sequential flotation of copper then nickel to produce separate copper and nickel concentrates. Test work has been completed with a final report pending, which will include locked-cycle metallurgical results for precious and platinum group metals. Discussions are underway for a pilot plant campaign using the XPS Mini Pilot Plant to optimise process development and progress concentrate marketing studies.
“Our first drill hole to test a seismic target has intersected the Cathedrals Belt fault structure as modelled by the seismic data and also confirmed the presence of mafic rocks along the structure at depth,” executive chairman John Prineas said.
“These deep-reaching structures are the control on mineralisation and our increased understanding of their orientation and location will be of great help with targeting the highly prospective but underexplored deeper areas of the mineralised intrusive system.
“Confirmation by MAD206 of the ability of the seismic survey to successfully and accurately map the framework of intersecting faults is encouraging for the ongoing exploration at Mt Alexander and will make our future programmes more effective.
“Overall, we are strongly encouraged by these results and are assessing the completion of additional seismic lines over key exploration areas, including the Stricklands deposit where the seismic will assist to identify any continuation at depth of the high-grade shallow deposit.
“We have already identified two strong EM conductors outside the footprint of the Stricklands deposit that could materially increase the resource inventory, suggesting that there is more mineralisation at Stricklands that has not been detected by EM surveys to date.
“The unique geology at Mt Alexander means that there is no precedent for exploration here. But the five high-grade discoveries we have already made – including at Stricklands – drive our determination to press on to discover more nickel, copper and platinum group metals across what is a highly prospective and still underexplored project area.
“I am pleased that the metallurgical programme for Stricklands is nearing completion with a flowsheet to be provided for the potential commercial production of separate high-grade nickel and copper concentrates.
“We have already received preliminary approaches to secure the offtake from any potential mining operation at Stricklands, and will look at accelerating development studies with a pilot plant campaign through the XPS Mini Pilot Plant.
“We look forward to reporting on these exciting work programmes in due course.”
