A total of 45,277,814 shares have been issued at 8 cents per share to raise $3,622,225 under the private placement.
Executive chairman John Prineas said: “The support received in the placement – and in the SPP to date – has been very strong and we thank all investors for the backing they have shown the company.”
On May 12, the company announced a share purchase plan (SPP) for existing shareholders at the same price of 8 cents per share – raising up to $1.6 million.
Under the plan, eligible shareholders will have the opportunity to purchase up to $20,000 worth of shares irrespective of the size of their shareholding, without incurring brokerage or transaction costs.
Prineas said: “We are pleased to offer our loyal shareholders an opportunity to increase their holding in St George ahead of our major drill program at Mt Alexander.
The company will now have total new funds of around $5.2 million for exploration activities including the 2020 drill program for the Mt Alexander Project.
Map of the Cathedrals Belt showing planned and completed MT survey lines overlaying interpreted geology and magnetics.
Drilling fully funded
The drill program at Mt Alexander is scheduled to commence next week.
Prineas said: “The 2020 drill program will test targets at Mt Alexander with potential for new high‐grade nickel‐copper sulphide discoveries as well as targets to confirm the extension of known mineralisation.
“The shallow nickel‐copper sulphide deposits already discovered in the Cathedrals Belt have confirmed the presence of exceptional high‐grade nickel, copper, cobalt and Platinum group metals over a strike of 5.5 kilometres.
“We are optimistic that the forthcoming drill program will discover additional mineralisation of this kind and cement Mt Alexander’s position as the most exciting, advanced high‐grade nickel sulphide discovery in Australia.
“We look forward to reporting results of the drilling over the coming weeks and months.”
A reverse circulation (RC) drill rig due to arrive at site within days, and a diamond rig due to arrive at site the following week.
Priority targets identified
The drilling program will test the new conductive zones identified by the magnetotelluric (MT) and Audio‐magnetotelluric (AMT) surveys completed during the March quarter.
The surveys identified a large conductive feature at the Investigators prospect below the shallow high‐ grade deposit and current extent of drilling, and new nickel‐copper sulphide targets also identified within the Radar, Cathedrals, Fairbridge and Investigators prospects in areas yet to be tested by drilling.
Extension and infill drilling is planned to start at the Investigators prospect, followed by resource definition drilling of six diamond holes at the Stricklands deposit.
Map showing St George’s tenement in the Paterson Province as well as other projects in the region.
Mt Alexander prospectivity
To date, assays have confirmed high‐grade mineralisation of 10.5 metres at 4.82% nickel, 1.67% copper, 0.15% cobalt and 2.87 total g/t PGE from 182.5 metres, including 4 metres at 7.53% nickel, 2.47% copper, 0.23% cobalt and 3.92 total g/t PGE from 186 metres.
Platinum group metals include high levels of palladium and rhodium at 10.5 metres at 2.33 g/t palladium and 0.08 g/t rhodium including 4 metres at 3.23 g/t palladium and 0.1 g/t rhodium.
Further metallurgical test work is continuing in Perth.
Scoping study underway
The company has appointed Entech to estimate a maiden JORC‐compliant mineral resource at the Mt Alexander Project which will initially focus on the Stricklands deposit where thick massive nickel‐copper sulphide mineralisation starts at 30 metres below surface.
Once determined, the resource will be used in the scoping study for a low‐cost starter mine at Mt Alexander.
The phase-one environmental study for the project has been completed and phase-two is planned for quarter two 2020.