THE DRILL SERGEANT: St George Mining (ASX: SGQ) has identified further priority targets from geophysical surveys recently completed and underway at the company’s Mt Alexander project in Western Australia.

At George Mining said the deep search FLEM SAMSON survey over the western section of the Cathedrals Belt identified new EM anomalies.

A preliminary review of the data showed the new targets have properties consistent with massive nickel‐copper sulphides.

St George indicted it will prioritise drill testing of these targets once final modelling of the anomalies by Newexco is completed.

The company has now moved the FLEM SAMSON survey to the eastern extension of the Cathedrals Belt with initial modelling and interpretation of data underway by Newexco.

The high resolution magnetic data generated by the recent airborne magnetic survey at Mt Alexander identified additional north‐northwest trending magnetic features with up to five kilometres strike parallel to the main Mt Alexander ultramafic belt.

St George explained these newly recognised magnetic features have never been explored and the company considers that they may represent further ultramafic sequences with potential to host nickel‐copper sulphide mineralisation.

“Our field work is continuing to deliver exciting results that are opening up important new exploration opportunities at the Mt Alexander project,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“The SAMSON survey at the Cathedrals Belt is progressing well and a number of highly prospective EM targets have already been identified.

“We are looking forward to drilling these targets as we believe the likelihood of discovering further high-grade nickel‐copper sulphides in this Belt is high.

“The new aeromagnetic survey has indicated that there is potential for further mineralised ultramafics parallel to the Mt Alexander ultramafic belt.

“As with the newly recognised eastern extension of the Cathedrals Belt, this is an unexplored area with strong exploration upside.

“Overall, the geophysical surveys have been an outstanding success in generating new targets over a broader area which has significantly increased the potential at the project.”

Website: www.stgm.com.au

THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) has intersected gold mineralisation while reverse circulation (RC) drilling at the Leviticus and Break of Day South prospects.

Musgrave Minerals explained the two prospects are located approximately two kilometres and 1.4km respectively to the south of Break of Day on the Moyagee project at the Cue Joint Venture (with Silver Lake Resources (ASX: SLR)) in the Murchison region of Western Australia.

At Leviticus drill hole 16MORC057 intersected:

4 metres at 4 grams per tonne gold from 103m down hole, including 1m at 10.2g/t gold from 103m down hole at Leviticus.

Musgrave said the mineralised lode at Leviticus has been interpreted to be steeply dipping to the west similar to the Break of Day lodes and that this reinterpretation has opened up the potential for the gold mineralisation to continue down dip and along strike.

Drill hole 16MORC058 intersected:

4m at 3.5g/t gold from 72m down hole at Break of Day South.

Musgrave has interpreted the mineralised lode at Break of Day South to be steeply dipping to the west, and open along strike and down dip.

The Break of Day South prospect is located approximately 1.4km south of Break of Day on the Break of Day shear.

“These assay results continue to enhance the geological understanding and prospectivity of the Break of Day Shear that extends for approximately 20 kilometres within the Moyagee project,” Musgrave Minerals said in its ASX announcement.

“This increases the potential for further gold mineralisation to be discovered within Musgrave’s tenure as the geological model continues to develop.

“Both the Leviticus and Break of Day South prospects are very sparsely drilled and have the potential to host similar high-grade sub-vertical gold lodes to those discovered at Break of Day.

“The Break of Day South prospect is located approximately 1.4 kilometres south of Break of Day on the Break of Day shear.”

Musgrave indicated the current diamond drilling program at the Break of Day prospect is progressing well with four of the proposed eight holes completed to date.

The drill core from the first two holes has sent to a laboratory in Perth and is currently being cut in preparation for specific gravity (density) determination and assaying.

Musgrave’s objective is to increase the high-grade gold resources to underpin studies that will demonstrate a viable path to development.

Email: info@musgraveminerals.com.au

Website: www.musgraveminerals.com.au

THE DRILL SERGEANT: Encounter Resources (ASX: ENR) has completed the first diamond drill hole at the Egg prospect, part of the company’s Telfer West project in Western Australia.

Encounter Resources said the drill hole has confirmed the presence of a broad, steep dipping zone of stockwork style gold mineralisation within a strongly silicified massive quartzite unit, adding the stockwork zone contains multiple quartz veins containing pyrite and sporadic arsenopyrite over a downhole length of 90 metres.

The company explained that the eastern margin of the stockwork system was selected for priority analysis with a 20m section of the stockwork containing the highest concentration of sulphide over a four metre interval within a broad zone of fractured and silicified quartzite.

Assay results from this zone have been received and have established the presence of high-grade primary gold at Telfer West as well as strong gold anomalism throughout the stockwork zone.

“This first hole at the Egg prospect has confirmed a significant, depth extensive stockwork system that is highly anomalous in gold,” Encounter Resources said in its ASX announcement.

“The hole also confirms the system has the potential to contain zones of higher grade gold within the primary sulphide zone.

“The next phase of exploration at the Egg prospect is to drill test the near surface position of the stockwork corridor on the existing drill section at Egg and to test along the corridor to the northwest and southeast.

“The stockwork corridor is interpreted to follow the trend of the silicified quartzite ridge and then continue undercover to the northwest along a distinct zone of magnetic anomalism.

“This corridor is essentially untested along strike from the Egg prospect drill section with only three other shallow diamond holes drilled on this eight kilometre long trend.”

Encounter Resources has also completed an orientation surface IP program at the Egg prospect, which is currently being assessed to determine if IP can successfully map the stronger zones of sulphide mineralisation along the length of the stockwork corridor.

The company anticipates assay results from the remainder of ETG0002 to be received in three to four weeks.

Results from ETG0003 (currently in progress), located 4km north-west of ETG0002, are expected in January 2017.

Following receipt of assay results from this initial program and interpretation of the orientation IP survey, Encounter indicated it will determine the optimal path forward to define the full potential at Telfer West.

Website: www.enrl.com.au

THE DRILL SERGEANT: The Western Australian Government recently announced companies that were successful in the latest ballot for co-funded drilling under its Exploration Incentive Scheme (EIS).

Rox Resources (ASX: RXL) picked up a further grant under the scheme, for $119,200 to support exploration at the company’s 100 per cent-owned Fisher East nickel project, located 450km north of Kalgoorlie in Western Australia.

According to Rox Resources the co-funding will be allocated to deep drilling at the Camelwood deposit which is one of several nickel sulphide deposits at the Fisher East nickel project.

“This is in addition to funding we have received under previous EIS funding rounds and brings the total awarded for 2017 to $191,200,” Rox Resources managing director Ian Mulholland said in a company announcement to the Australian Securities Exchange.

“We would like to take this opportunity to again sincerely thank the WA Government for their continued support of Rox and the exploration sector.”

It is anticipated the co-funded drilling will be undertaken at Fisher East during 2017.

Sipa Resources (ASX: SRI) secured external totalling up to $300,000 from the Western Australian and Australian Federal Governments for two exploration initiatives at the company’s Paterson copper-gold project in WA.

Sipa Resources explained the additional funding – comprising $150,000 in co-funding from the Western Australian Government’s EIS and up to $150,000 for a new collaborative study between Sipa and the CSIRO Minerals Discovery Group – represents a boost to its exploration efforts in the Paterson Province, where it recently discovered an extensive copper-gold mineral system.

The company’s completed a maiden 4,500m drill program, which delineated a major gold-copper mineral system over a four kilometre strike length at the Obelisk prospect, within the Great Sandy Tenement.

Sipa explained the drilling confirmed the anomaly is continuously developed over the entire strike length, including a 1.5km long zone where strongly anomalous copper and gold results were returned, leading to the company identifying it to be a target for follow-up exploration.

“The Paterson is a new frontier for Australian exploration and, while the prize is great, the thick cover and tough operating conditions make it a challenging environment for exploration,” Sipa Resources managing director Lynda Burnett said in an ASX announcement.

“We are very grateful for the support of these groups and we are looking forward to collaborating with some of the best geoscientists in Australia to work towards a major new mineral discovery next year.”

THE DRILL SERGEANT: Azure Minerals (ASX: AZS) announced an upgrade of the Mineral Resource Estimate for the Mesa de Plata silver deposit at the company’s Alacrán gold, silver and copper project located in Sonora, Mexico.

Azure Minerals said the Resource upgrade came on the back of an additional 3,000 metres of Reverse Circulation (RC) infill drilling and 500m of PQ diamond drilling it has completed since announcing the maiden Resource estimate in May 2016.

The company explained the results from this drilling program allowed the upgrading of Indicated Resources to the Measured category in accordance with the JORC Code with the upgraded Resources showing more than 85 per cent of the total contained silver ounces now classified as Measured Mineral Resource.

Source: Company announcement