After a successful year of vectoring in on the source of its significant nickel hits at Mt Alexander in WA, St George Mining will now kick off a major drill program. The latest round of drilling comes hot on the heels of the company’s oversubscribed $3.6 million placement, highlighting St Georges commitment to fast-tracking the project and producing a maiden resource at the high grade Stricklands nickel discovery.
St George Mining Executive Chairman, John Prineas said: “The shallow deposits discovered to date confirm that the mineral system at the Cathedrals Belt hosts outstanding mineralisation with high grades of nickel, copper, cobalt and platinum group metals”.
“The MT (geophysical) survey completed this year has confirmed the presence of conductive features beyond the current extent of drilling. This new data is a significant breakthrough in exploration at Mt Alexander. It has provided a blueprint to the structural framework of the mineral system that will guide our drilling of the deeper targets.”
This latest drilling campaign is flagged to test a number of high-priority targets across the Cathedrals Belt and will also include deeper drilling of the high-grade Investigators discovery and the Fish Hook discovery.
Mr Prineas said; “… we are excited to begin the first ever drilling at the Fish Hook Prospect. With a high-order soil anomaly coupled with EM anomalism and interpreted ultramafic intrusives, this drilling has the potential to deliver another greenfields nickel sulphide discovery”.
A significant component of the new campaign will be the evaluation of the potential of the shallow, high-grade nickel sulphide discovery at Stricklands. The company has scheduled 3,000 metres of RC drilling to commence over the deposit in June 2020, with a view to facilitating the estimation of a maiden resource for Stricklands. The company speculates that a subsequent scoping study for the deposit may deliver a ‘low-cost starter mine’ for Mt Alexander, kicking off development of the project and providing some early cash flows.
John Prineas, St George Mining’s Executive Chairman, said: “… this drill campaign will include the resource definition at the shallow Stricklands deposit. With high-grade mineralisation starting 30m from surface, we believe Stricklands can support a low capital cost, high-margin mining operation that we can fast-rack to development.”
With $3.6m banked from the latest capital raise and multiple geological indications of mineralisation across a swag of prospects at Mt Alexander, St George looks to be in for a period of sustained news flow.
Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au
