St George Mining Confirms Nickel-Copper Sulphide Discovery

THE DRILL SERGEANT: St George Mining (ASX: SGQ) announced that laboratory assays have confirmed a healthy intersection of high-grade nickel-copper sulphides at the Radar prospect – the latest discovery at the company’s Mt Alexander project, located in the north-eastern Goldfields of Western Australia.

St George Mining indicated the new discovery to be located 1.2 kilometres east of the known nickel-copper sulphide deposits at the Cathedrals prospect and extends the east-west strike of high-grade mineralisation on the Cathedrals Belt to 5.5 kilometres.

The company said that the first drill hole undertaken at the Radar prospect returned assays that confirm a shallow discovery of nickel-copper sulphide mineralisation

MAD152 encountered an intersection of:

6 metres at 2.14 per cent nickel, 0.74 per cent copper and 1.62 grams per tonne PGEs from 46m, including 2.55m at 4.29 per cent nickel, 1.46 per cent copper and 3g/t PGEs from 49.05m.

MAD152 was drilled into an electromagnetic (EM) conductor the company had interpreted to be situated within the unexplored eastern extension of the mineralised Cathedrals Belt.

A subsequent downhole EM (DHEM) survey in MAD152 indicates that the hole has intersected only the northern portion of the EM conductor with increased strike and conductivity of the conductor to the south-west.

St George intends re-commencing drilling at Radar with step-out holes planned to test for up-dip and down-dip extensions to the high-grade mineralisation.

“With high-grade mineralisation now established over a 5.5 kilometre strike of the east-west oriented Cathedrals Belt, we are increasingly confident of the potential to develop a potential mining operation at the project,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“More than 10.5 kilometres of the Belt remains underexplored with strong targets emerging at Fish Hook and West End, which are also scheduled for drilling in this drill program.

“Exploration success here could add substantial volumes of mineralisation to a potential resource at Mt Alexander.

“The strong rally in the nickel price over recent months is likely to be very favourable for the project economics of a potential development at Mt Alexander, and we are pleased to initiate preliminary studies to assess a potential mining development at Mt Alexander.”