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St George Mining continues nickel-copper sulphide streak at Mt Alexander

Published: 09:30 10 May 2017 AEST

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Mt Alexander shows positive signs for a future mining operation

St George Mining (ASX:SGQ) has intersected the thickest massive sulphide mineralisation to date at the Investigators Prospect within the Mt Alexander Project located in Western Australia.

The newly drilled hole, MAD60, intersected 4.88 metres of massive and matrix sulphides including 3.3 metres averaging 6.3% nickel and 4.3% copper as measured by portable XRF.

At the Cathedrals Prospect, MAD59 intersected 3.25 metres of nickel sulphides including 1.25 metres of massive sulphides grading 9% nickel and 2% copper as measured with XRF.

John Prineas, chairman, commented: “These results are amongst our best ever intersections at Mt Alexander and illustrate the outstanding potential of this underexplored project.

“The nickel and copper values we are seeing continue to be impressive and give confidence that the high grade mineralisation will support robust economics for a potential mining operation.”


Drill result details

MAD60 was completed at the Investigators Prospect to test an electromagnetic anomaly and has intersected a 20.6 metres thick mineralised ultramafic that included 4.88 metres of massive and matrix sulphides from 157.8 metres down hole.

Two intervals of massive sulphides were intersected measuring 3 metres and 0.3 metres thick with average values of 6.3% nickel and 4.3% copper based on portable XRF readings.

At the Cathedrals Prospect, MAD59 intersected a 3.25 metres thick interval of nickel sulphide mineralisation with average values of the 1.25 metre massive sulphide of 9% nickel and 2% copper based on portable XRF readings.

Lab assays remain pending which will look to confirm the portable XRF measurements.


Mt Alexander

St George recently commenced a major drilling campaign at the Mt Alexander nickel sulphide project testing the Cathedrals prospect, the Stricklands prospect and the Investigators prospect.

Drill results from Mt Alexander during 2016 suggest it could be an emerging new nickel camp with potential for multiple deposits.

Multiple new discoveries in 2016 have established recurrent mineralisation over 3.5 kilometres of strike.

The program is testing new conductors and targets as well as targeting extensions to mineralised zones to establish a resource base.


Good early signs for project economics

The exploration work to date at Mt Alexander supports the project’s prospects of becoming a future mining operation.

These include:

-Shallow depth of mineralisation for low cost mining;
-High grades of nickel and copper with strong credits for cobalt and platinum group elements (PGEs);
-Excellent metallurgy to product a high quality, smelter-friendly concentrate;
-Proximity to existing processing plants; and
-Near existing infrastructure such as roads and power.


Analysis

Preliminary results from MAD60 and MAD59 continue to reveal Mt Alexander’s potential to host economic high grade nickel and copper mineralisation.

MAD60 represents a new discovery of massive nickel-copper sulphides in the central area of the Investigators Prospect, which will be tested by further exploration.

The Investigators Prospect extends for a strike length of 1.3 kilometres with limited drilling to date already identifying several mineralised zones.

The intersection in MAD60, as the thickest interval of massive sulphides encountered at Investigators to date, supports the potential for further discoveries of significant mineralisation at this underexplored prospect.

Global commodities research group, Wood Mackenzie estimated a long-term nickel price of US$22,000 per tonne or US10 per pound in December 2016.

With spot nickel prices currently trading at US$4.15 per pound on the back of a positive 2016, there is a good argument that now is the time to gain exposure to the commodity.

Preliminary metallurgical test-work on a sample of massive nickel-copper sulphide indicates that Mt Alexander will produce a high value saleable concentrate that will be sought after.

Drilling is ongoing at Mt Alexander and further results will be highly anticipated as they continue to reveal the project’s potential.

A major 5,000 metre gold drilling program is also set to commence at the East Laverton project in Western Australia.

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