Growth focused Western Australian nickel company St George Mining Limited (ASX: SGQ) has provided an update on drilling and exploration programs at its flagship Mt Alexander project, located in the north-eastern Goldfields.
HIGHLIGHTS:
Large nickel-copper sulphide target identified at Fish Hook prospect:
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Large conductive feature has been identified at Fish Hook by the just-completed magnetotelluric (MT) and audio-magnetotelluric (AMT) surveys.
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The new conductive feature is located below the high-order nickel-copper soil anomaly at Fish Hook and is modelled to dip to the north-west, consistent with the known ultramafic stratigraphy elsewhere in the Cathedrals Belt.
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Seven reverse circulation (RC) reconnaissance drill holes have been completed at Fish Hook but were too shallow to intersect the new conductive feature, which commences 250m below surface.
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Additional drilling is planned at Fish Hook to test this compelling target for nickel-copper sulphides.
Diamond drilling scheduled to commence this weekend:
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The first of two diamond drill rigs is due to arrive at site over the weekend, with the second diamond drill rig expected shortly.
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Diamond drilling will focus on testing the new, deeper conductive features identified by the MT/AMT surveys with targets at the Investigators Prospect the first of the deeper nickel-copper sulphide targets to be drilled.
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Metallurgical drill holes will also be completed by diamond drilling at the Stricklands Prospect as part of the scoping study into a potential mining operation.
Resource definition drilling is underway:
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RC drilling has commenced at the shallow, high-grade Stricklands deposit to support a JORC-compliant resource estimate expected to be announced in Q4 2020.
Very encouraging results have been delivered by the latest data from the additional magnetotelluric (MT) and audio-magnetotelluric (AMT) surveys completed at the Fish Hook Prospect. Modelling of the survey data has identified a large conductive feature in a location that is geologically favourable for a potential extension of the mineralised Cathedrals Belt.
New Conductive Target at Fish Hook:
The new conductive anomaly is located below the large and coherent nickel-copper soil anomaly identified at Fish Hook in 2019. Assays for this geochemical footprint returned highly anomalous values for nickel and copper as well as chrome – which is supportive of the potential presence of ultramafic with nickel-copper sulphides. For more on the soil survey, please see our ASX Release dated 8 November 2019 More High Grade Nickel Targets at Mt Alexander.
The additional MT/AMT surveys completed in May 2020 included an east-west oriented survey line that extended across the strike of the Cathedrals Belt from the Bullets Prospect in the west to the Fish Hook Prospect in the east. North-south survey lines were also completed across the Fairbridge/Cathedrals, Fish Hook and West End Prospects. At Fish Hook, the north-south line (Cross Section A) was completed over the high-order nickel-copper soil anomaly.
Detailed 3D inversion modelling of the survey data for Fish Hook has confirmed a large conductive feature commencing at approximately 250m below surface and extending to more than 750m below surface. The core of the conductive feature is interpreted to be at 400m to 600m below surface.
The conductive anomaly is modelled as dipping to the north-west, which is consistent with the known mineralised ultramafic intrusives intersected by drilling in other parts of the Cathedrals Belt.
Four of the recently completed RC drill holes at Fish Hook were drilled in the vicinity of the conductive feature and were designed to test shallow magnetic and electromagnetic (EM) targets.
These drill holes were planned prior to the MT/AMT data being available and did not intersect the new and deeper conductive target; see Figure 1. The new conductive feature is a compelling target for potential nickel-copper sulphides and will be prioritised for diamond drilling soon.
John Prineas, St George Mining’s Executive Chairman, said: “We are very pleased to be ramping up the drill campaign at Mt Alexander.
“Diamond drilling of the deeper MT conductive targets will start shortly and we are excited to have another high-quality target to drill at the Fish Hook Prospect.
“The resource drill-out at Stricklands is also underway and we look forward to completing the scoping study for what we believe could be a low-capex, high-margin mining operation at Stricklands.
“This is an exciting time for St George Mining.”
