St George Mining adopts new nickel mining strategy

THE DRILL SERGEANT: St George Mining (ASX: SGQ) has formulated a new nickel exploration strategy for the company’s East Laverton Property in the northeast Goldfields of Western Australia.

The new exploration strategy comes with the consolidation of the nickel rights at the East Laverton Property after BHP Billiton Nickel West (ASX: BHP) informed the company it was walking away from the Farmin Agreement for Project Dragon.

The nickel targets already generated by Project Dragon will now be owned and controlled wholly by St George Mining, which the company indicated it will incorporate into a structured exploration program.

“The company has regained 100 per cent ownership of an emerging nickel mineral field, securing all the upside of any new discoveries for our shareholders,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“Project Dragon was an excellent means to advance through the initial high-risk stage of nickel exploration at East Laverton.

“St George will now move forward on the solid foundation built from almost $3 million of exploration work funded and conducted by a major mining company.

“The work that has been completed has unequivocally confirmed the presence of nickel sulphides at East Laverton.

“The technical merit of the project is outstanding and we have sound reasons to be very optimistic that a significant discovery is near.

St George believes it has learned a good deal in relation to the nickel prospectivity of the East Laverton Property since entering into the Project Dragon farm-in arrangement in early 2011.

During this time the company said it had exploration success in its own right at East Laverton, while at the same time obtaining valuable experience via Project Dragon.

“We are very excited to have consolidated 100 per cent ownership of this flagship asset which gives us the best opportunity to take advantage of its exciting potential through a concerted programme that we can control across the whole project area,” Prineas said.

“St George now has the rare exploration opportunity to make a discovery of global significance.”