Growth focused Western Australian nickel company St George Mining (ASX: SGQ) has provided its FY20 annual report to shareholders.
The company’s operational activities during the year focused on exploration and development work at its flagship Mt Alexander project in Western Australia’s north‐eastern Goldfields.
Exploration also commenced at its new Paterson project, an early stage project in a world‐class gold and base metals mineral district with excellent potential for a greenfields discovery.
In his letter to shareholders, St George’s executive chairman, John Prineas, said:
Dear Fellow Shareholders,
It is my pleasure to present the Annual Report of St George Mining Limited (ASX: SGQ) for 2020 – a significant year which saw the Company achieve key milestones on our growth agenda.
At our flagship Mt Alexander Project, ongoing drilling and geophysical programmes during the year in review delivered another significant shallow discovery of nickel‐copper sulphides at the Radar Prospect – located in an unexplored section of the Cathedrals Belt and about 1.2km east of known mineralisation.
This blind discovery extended the east‐west strike of known high‐grade mineralisation along the Cathedrals Belt to 5.5km encompassing four shallow discoveries at Investigators, Stricklands, Cathedrals and now Radar.
Such an extensive strike of mineralisation is further confirmation of the large intrusive mineral system at the Cathedrals Belt and supports the potential for significant mineralisation to also be present at depth, below the shallow deposits already discovered.
Drilling of deep targets has commenced with thick mineralised mafic‐ultramafic units intersected in multiple drill holes, successfully identifying a large target horizon for potential further nickel‐copper sulphide deposits at depth. Drilling continues in this highly anticipated programme.
An important strategic initiative taken during the year was to commence a scoping study for a potential mining operation at the shallow high‐grade deposit at Stricklands. A resource drill‐out was completed with metallurgical and flowsheet analysis underway.
Our strategy is to establish a low‐cost, high‐margin mining operation at Mt Alexander – initially to mine the Stricklands deposit and then rolling out the same model to the shallow high‐grade deposits at Investigators and Cathedrals. The early results from this scoping work are highly encouraging.
We are also pleased to have established a new project in the Paterson Province. This is one of the most highly endowed mineral provinces in Australia but remains underexplored. A number of recent significant copper and gold discoveries – including at Rio Tinto’s Winu Project and at the Havieron Project being explored in joint venture by Greatland Gold and Newcrest – have ensured that the region is re‐emerging as a highly sought after exploration address with potential for world‐class discoveries.
Geophysical surveys at our Paterson Project have identified several high priority targets. Drilling of these targets – scheduled for later this year – promises to be a very exciting time our Shareholders.
I would like to thank our technical team for the professional job they have done in systematically advancing exploration at all our projects over the past year to bring about the key milestones achieved. These have established a strong platform for further exploration success and creation of Shareholder wealth.