Growth-focused Western Australian nickel company St George Mining Limited (ASX: SGQ) today provided an update on exploration and development activities at its flagship Mt Alexander Project, located in the north-eastern Goldfields of WA.
HIGHLIGHTS:
Drilling of new electromagnetic (EM) conductors:
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Diamond drilling of strong EM conductors identified from recent downhole EM (DHEM) surveys in MAD185, MAD192 and MAD193 is scheduled to begin within weeks.
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Multiple new EM conductors will be tested with the highest priority targets being:
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The two conductors identified from the DHEM survey in MAD192 that are modelled with conductivity of 55,550 Siemens and 26,000 Siemens, respectively.
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The two conductors identified from the DHEM survey in MAD185 that are modelled with conductivity of 33,100 Siemens and 14,225 Siemens, respectively.
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These conductors have an electrical signature consistent with massive sulphides and are ideally situated within the large mafic-ultramafic unit that is known to host massive nickelcopper sulphides in other parts of the Mt Alexander Project.
Resource definition drilling to commence at Investigators and Cathedrals:
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Reverse circulation (RC) drilling to support a resource estimate of the shallow high-grade mineralisation at both the Investigators and Cathedrals Prospects is scheduled to begin in February 2021.
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Drilling at Investigators will include the drilling of a large number of untested EM conductors that represent outstanding targets for locating more massive nickel-copper sulphides.
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More than 10,000m of RC drilling is planned in this resource drill programme.
Positive results from interim metallurgical test work for Stricklands:
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High metallurgical recoveries achieved in test work completed in Canada on nickel-copper sulphides from the Stricklands Prospect.
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Test work shows the oxide and fresh composite is amenable to the production of separate nickel and copper concentrates from conventional flotation circuits.
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Further metallurgical test work planned to better optimise the potential mining and processing of ore from Stricklands.
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Scoping study for the Stricklands starter mine proposal awaiting final metallurgical test work for completion.
John Prineas, St George Mining’s Executive Chairman, said:
“2020 has been a difficult and odd year. Some businesses have been devastated by COVID-19 while others have flourished. Everyone has been required to make adjustments in order to survive in the new world environment.
“At St George, we have carefully managed our operations in compliance with COVID-19 regulations to protect the health and safety of our team and service providers.
“Notwithstanding the significant challenges faced by everyone, we have managed to achieve many important milestones in 2020.
“We commenced our deeper drill programme in June this year and completed multiple deep holes – the deepest to 850m. We confirmed the presence of fertile intrusive rocks at depth, giving confidence that the extensive shallow high-grade mineralisation already discovered could also occur at depth.
“We were further rewarded when downhole EM surveys in several deep holes lit up very powerful EM conductors. We have secured a diamond rig for January and look forward to starting 2021 with a new massive sulphide discovery.
“We believe our high-grade nickel-copper sulphides are amongst the best mineralisation discovered in Western Australia with a combination of high-grades of nickel, copper, cobalt and platinum group metals that is unmatched by other discoveries.
“Thorough metallurgical test work is required to develop a flowsheet that can maximise the value of all these metals in a potential mining and processing operation. Positive test work results have been delivered by work in Perth and Canada. The test work will be finalised next year, allowing for completion of a scoping study for a starter mine at Mt Alexander.
“The next year promises to be another exciting one as we continue to unlock the full value of our large, highgrade mineral system. On behalf of the Board of Directors, we thank our shareholders for their support in 2020 and look forward to sharing more success with you in 2021.”
