St George reports successful met test holes, turns focus to high-impact drilling at Mt Alexander nickel-copper sulphide project

Growth focused Western Australian nickel company St George Mining Limited (ASX: SGQ) today reported more strong exploration results at its flagship high-grade Mt Alexander Project, located in the north-eastern Goldfields.

HIGHLIGHTS:

24/7 diamond drilling of electromagnetic conductors in progress:

• Drilling of MAD195 – targeting a strong 33,100 Siemens conductor at 340m downhole depth – is underway with drilling at 315.4m downhole as of yesterday.

• Drilling of MAD196 – targeting a strong 55,550 Siemens conductor at 505m downhole depth – is underway with drilling at 118.1m downhole as of yesterday.

High-grade XRF results for metallurgical drill holes at Stricklands:

• Drill core for Stricklands metallurgical holes has been cut and massive sulphide intervals have been tested with portable XRF analyser, recording the following average XRF values (* XRF results are preliminary in nature and laboratory assays are required to confirm the metal content of the drill core; matrix and disseminated sulphides were not included in the XRF analysis):

• STD015:

  • 3.84% Ni and 0.61% Cu from 67.3m to 69m, and

  • 3.00% Ni and 1.6% Cu from 70.4m to 73.1m.

• STD014:

  • 6.86% Ni and 0.61% Cu from 40.2m to 41.7m, and

  • 4.92% Ni and 5.4% Cu from 48.2m to 48.9m.

• STD013:

  • 2.6% Ni and 0.9% Cu from 47.2m to 50.6m.

• Samples have been sent for laboratory assaying which will provide a definitive account of the metal values in the sulphide intersections of the Stricklands drill holes.

• Approximately 300kg of drill core samples are in transit to Canada for completion of metallurgical test work and flowsheet design.

Petrographic analysis of shallow mineralisation confirms same favourable intrusive host rocks that are found at open depth:

• Petrographic analysis has been completed on sections of drill core from MAD31 at Investigators which intersected high-grade nickel-copper sulphides at 111m downhole.

• Intrusive host rock identified as leuconorite, lherzolite and gabbronorite, similar to the intrusive rocks that petrology identified in MAD181 at up to 550m downhole depth.

• Findings support the interpretation that the host intrusive unit at the Cathedrals Belt starts near surface and dips to the north-northwest.

24/7 drilling of new EM conductors

Drilling of MAD195 is continuing on a single-shift basis. Drilling is at 315.4m downhole with the modelled EM plate predicted to be intersected at 340m downhole.

MAD195 is targeting the 33,100 Siemens conductor identified from the DHEM survey in MAD185. A second crew for this rig is expected at site later this week, which will allow for drilling 24/7.

The second rig at site is already operating with two crews, with drilling of MAD196 continuing 24/7. Drilling is at 118.1m downhole with the modelled EM plate predicted to be intersected at 505m downhole. This hole is targeting the 55,550 Siemens conductor identified from the DHEM survey in MAD192.

John Prineas, St George Mining’s Executive Chairman, said:

“Field work is in full swing at Mt Alexander with two diamond core rigs drilling, a soil survey in progress and preparations underway for aeromagnetic and moving loop ground EM surveys.

“In the meantime, we are excited to be drilling two powerful EM conductors that are interpreted to have a massive sulphide source. We look forward to reporting results shortly.”