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Corporate Spotlight

The Mt Alexander Project is close to existing infrastructure and plants in the nearby Agnew-Wiluna Belt providing low cost options to fast-track the Project into production. SGQ is positioned for a major share price re-rating as the nickel price surges with a clear upswing in the cycle underway.
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CEO 'very pleased' with exploration results

SULPHIDE DRILLING BEGINS

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NICKEL-COPPER SULPHIDE DRILLING BEGINS AT MT ALEXANDER

ASX Announcement 22 February 2019 


HIGHLIGHTS

  • 2019 Drilling Campaign has Commenced: 
    • +5,500m reverse circulation (RC) drill programme is underway 
    • First target being drilled is the new West End Prospect which will test for a continuation of the highly mineralised Cathedrals Belt towards the Ida Fault 
    • Second target to be drilled will be the new Fairbridge Prospect with the first ever drilling of the interpreted mineralised contact between the high-grade discoveries at the Stricklands and Cathedrals Prospects 
  • Downhole electromagnetic (DHEM) Surveys from the 2018 Drilling Programme Confirm More Off-Hole Conductors: 
    • Modelling of the DHEM survey data has been finalised by Newexco with additional strong off-hole EM conductors identified that are consistent with massive sulphides 
    • Diamond drilling of these conductors will commence in 4 to 6 weeks 
    • Strong potential to further extend the strike of high-grade mineralisation 
  • Assays from 2018 Drilling Confirm High-Grade Nickel-Copper Sulphide Mineralisation: 
    • Further laboratory assays have been received for drill holes completed in late 2018 
    • Assays confirm multiple intersections of high-grade nickel-copper-cobalt-PGEs including MAD136 which returned: 
      • 5.11m @ 3.88%Ni, 2.4%Cu, 0.10%Co and 6.93g/t total PGEs from 148m, including 2.38m @ 6.76%Ni, 4.29%Cu, 0.19%Co and 6.39g/t total PGEs from 149.5m


Emerging Western Australian nickel company St George Mining Limited (ASX: SGQ) (“St George” or “the Company”) is pleased to announce that drilling of nickel-copper sulphide targets has commenced at the Mt Alexander Project, located near Leonora in the north Eastern Goldfields


St George Mining Executive Chairman, John Prineas said: 

“The 2019 drill campaign at Mt Alexander is off to an exciting start with a range of drill targets that have strong potential to discover further nickel-copper sulphides.


“The RC drill programme will be testing for continuations of the known high-grade mineralisation as well as testing for additional occurrences in areas where there has been no or very little previous drilling.


“The first holes to be drilled are at the new West End and Fairbridge targets. These areas are located on the highly mineralised Cathedrals Belt and adjacent to the high-grade discoveries at Investigators, Stricklands and Cathedrals.


“The concurrent use of drilling and DHEM surveys will continue to be used to scope out the distribution of the sulphide mineralisation. This has proved to be a very effective exploration method with modelling of DHEM data from drill holes completed at Investigators and Stricklands late last year identifying a number of strong off-hole EM conductors which we believe represent extensions of the known nickel-copper sulphide mineralisation


“The strong results from the 2018 drilling continue with final assays from that drilling confirming further high-grade nickel-copper-cobalt-PGEs in multiple intersections.


“The high PGEs in our mineralisation are particularly pleasing, with palladium – currently trading at another new record price – comprising around 80% of the total PGEs.”


Figure 1- map of the tenement package at Mt Alexander set against RTP magnetic data, showing the key prospects and targets under exploration. Drilling is now underway at the West End Target. 

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INVESTOR PRESENTATION

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READY TO DRILL

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ST GEORGE READY TO DRILL NICKEL-COPPER SULPHIDE TARGETS AT MT ALEXANDER

ASX Announcement 12 February 2019 


HIGHLIGHTS

  • +5,500 metre reverse circulation (RC) drill programme to commence next week at Mt Alexander with drilling in multiple target areas 
  • Infill and extensional drilling planned for the Investigators Prospect to support resource definition
  • First ever drilling of the interpreted mineralised contact at the Fairbridge Prospect where nickel-copper sulphide gossans have been identified over a 1km strike 
  • Drill targets at Fairbridge include several anomalies with geophysical signatures consistent with nickel sulphide mineralisation 
  • First ever drilling at the West End Prospect to test for the interpreted western extension of the highly mineralised Cathedrals Belt towards the Ida Fault 
  • First ever drilling by St George at the Mt Alexander Belt to follow-up massive nickelcopper sulphide intersections in previous exploration by BHP


Emerging Western Australian nickel company St George Mining Limited (ASX: SGQ) (“St George” or “the Company”) is pleased to announce that drilling is scheduled to resume on 18 February 2019 at the Mt Alexander Project, located near Leonora in the north Eastern Goldfields.


The 2019 drilling campaign at Mt Alexander will commence with an RC drill programme that comprises 37 planned drill holes for more than 5,500m of drilling. Additional drill holes may be added to the programme as initial drill results are reviewed. Downhole electromagnetic (DHEM) surveys will be used concurrently with drilling to further investigate for sulphide mineralisation.


A diamond drill programme will also commence at a later date to test the DHEM conductors identified from last year’s drilling as well as any DHEM conductors that may be identified from the upcoming RC drilling.


Table 1 – planned RC drilling programme commencing February 2019 

St George Mining Executive Chairman, John Prineas said: 

“We are very pleased to launch our drill programme for 2019 which will see the first ever drilling at newlydefined prospects at Fairbridge and West End


“This programme will also include our first ever drilling at the Mt Alexander Belt – an underexplored belt with multiple intersections of massive nickel-copper sulphides by previous explorers.


“We believe there is strong potential to discover further nickel-copper sulphides at each of these prospects.


“Additionally, the RC programme will see a continuation of the resource drill-out at the Investigators Prospect where high-grade nickel sulphides have been intersected over a 1.5km east-west strike and up to 380m down-plunge to the north.


“These are all high quality drill targets with strong potential for significant results that could further enhance the upside at Mt Alexander.”


FAIRBRIDGE PROSPECT – EM TARGETS BELOW NICKEL SULPHIDE GOSSANS 

The Fairbridge Prospect covers a 1,000m east-west strike of the Cathedrals Belt between the Stricklands and Cathedrals Prospects where high-grade nickel-copper sulphides have already been discovered.


Nine new nickel sulphide gossans were identified at Fairbridge in December 2018 by our technical team, suggesting that this section of the Cathedrals Belt may also host high-grade nickel-copper sulphides at depth. 


Geophysical surveys at Fairbridge commenced earlier this month and included both high resolution fixed loop electromagnetic (FLEM) and induced polarisation (IP) surveys. These surveys are due to be completed today, with processing of survey data already well underway.


Initial modelling of the data indicates several anomalies across the 1,000m strike of Fairbridge, giving encouragement that there could be chargeable material at depth that may represent sulphide mineralisation associated with the gossans. 


Modelling of the survey data is scheduled to be completed this week. Any modelled EM conductors will be tested by the RC drilling scheduled to commence next week.


In addition, a reconnaissance line of drill holes will also be completed at Fairbridge to target the interpreted mineralised contact. All drill holes will be cased in PVC tubing to allow completion of DHEM surveys to further assist in locating any mineralisation at depth.


Final drill hole details and EM targets will be provided upon commencement of drilling next week.


Figure 2 highlights the target area at Fairbridge. Four historical drill holes were completed in this area. These reconnaissance holes were drilled on the margin of the Belt and failed to intersect the mineralised contact. 


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MORE OUTSTANDING TARGETS

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MORE OUTSTANDING NICKEL-COPPER SULPHIDE TARGETS AT MT ALEXANDER

ASX Announcement 31 January 2019


HIGHLIGHTS: 

Multiple strong conductors identified by downhole electromagnetic (DHEM) surveys: 

  • Off-hole EM conductors have been detected from DHEM surveys in recently completed drill holes at the Investigators and Stricklands Prospects 
  • Strong conductors are consistent with a massive sulphide source 
  • Outstanding targets for the extension of nickel-copper sulphide mineralisation 


Nickel sulphide gossans identified within a 1,000m undrilled strike of the Cathedrals Belt, named the Fairbridge Prospect: 

  • Reconnaissance field inspection across Fairbridge identifies multiple gossans which have been confirmed by laboratory assays to be likely sourced from nickel sulphides 
  • Geophysical surveys are underway to screen for any conductive material at depth which may represent sulphide mineralisation 
  • This wide section of the highly mineralised Cathedrals Belt remains untested by drilling and represents an exceptional target for the discovery of further nickel-copper sulphide mineralisation 
  • Reverse circulation (RC) drill programme to commence in mid-February 2019 


RC drill programme planned to test a 2,500m strike of the Cathedrals Belt between the Investigators Prospect and the Ida Fault, named the West End Prospect:

  • Re-interpretation of recent drill data from Investigators suggests that the Investigators ultramafic unit dips to the west and may lie underneath a paleochannel observed in magnetic data 
  • Reconnaissance RC drilling will be undertaken to test for the presence of sulphide mineralisation which may be ‘blind’ to previous geophysical surveys


Emerging Western Australian nickel company St George Mining Limited (ASX: SGQ) (“St George” or “the Company”) is pleased to announce further nickel-copper sulphide targets at the Mt Alexander Project, located near Leonora in the north Eastern Goldfields, which have potential to significantly expand the large footprint of high-grade mineralisation at the Project. 


Drilling to date by St George at the Cathedrals Belt has identified a 4.5km strike of high-grade nickel-copper sulphide mineralisation. Large parts of the Cathedrals Belt, including extensions to the east and west of the known mineralisation, remain undrilled and offer highly prospective targets for the discovery of additional nickel-copper sulphides. 


St George Mining Executive Chairman, John Prineas said: 

“It is very pleasing to see the latest exploration work generate new targets for nickel-copper sulphides within the large mineral system at Mt Alexander. 


“These targets cover a significant area of the highly mineralised Cathedrals Belt and provide encouragement that the extent of sulphide mineralisation within the Belt may be much more expansive than identified by drilling to date.


“We are continuing along the path of establishing a resource base at Mt Alexander and are excited to be starting our 2019 drill programme shortly with such highly prospective targets.” 


DHEM CONDUCTORS LIGHT UP POWERFUL CONDUCTORS 

Drilling and DHEM surveys are being used concurrently to successfully scope out the scale of the discoveries along the Cathedrals Belt. 


DHEM surveys were completed earlier this month on a number of the diamond drill holes drilled in the last quarter of 2018 at the Investigators and Stricklands Prospects. Off-hole EM anomalies were identified from the surveys in several of the drill holes, as summarised below in Table 1. Modelling of some of the EM anomalies is continuing.


Table 1 – Interim results of DHEM anomalies identified by the latest DHEM surveys. (For details of drill holes, see Table 2 in our ASX Release of 20 December 2018 ‘Strong Results Continue at Mt Alexander’). With a 100% success record of EM conductors in the Cathedrals Belt returning mineralised sulphides, we believe these new targets are likely to be associated with massive sulphide mineralisation and have excellent potential to further extend the known high-grade mineralisation in the Cathedrals Belt. 


A diamond drill programme to test these conductors will be launched once modelling of the EM data is completed.


Click here to view the full announcement

RESEARCH REPORT

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Renewed Mt Alexander focus and regionally

9 January 2019 


Expanded footprint of high value nickel+ mineralisation

SGQ’s considerable diamond drilling over 2018 of electromagnetic (EM) targets in the 75% owned Cathedrals Belt of the company’s Mt Alexander Project has expanded the footprint  of  the  high grade  nickel-copper-cobalt-PGM  mineralisation.  While  there  is much   still  to   be   resolved  about  the   geology  of  the   nickel   occurrences  at   the Investigators,  Cathedrals  and Stricklands  Prospects,  there  is  growing  evidence  now that  they  do  have  meaningful connectivity  and  constitute  an  economically  attractive, high  value  opportunity  that warrants  more  detailed  investigation.    Starting  at  very shallow  depths  in  a  granite-dominant  ultramafic  setting  and  having  very  favourable metallurgical processing indications from preliminary test work and the coarse grained nature of the sulphides, the main unknowns of the nickel mineralisation are its extent and  the  most  likely  mining  methods.   The  actual  classification  of  the  Mt  Alexander nickel mineralisation remains to be determined, but the mineralisation still appears to have close affinities to the Raglan style of deposit.


Increased exploration activity with new management

The  company’s  recent  appointment  of  Dave  O’Neill  as  Exploration  Manager  signals SGQ’s  intentions  to  escalate  exploration  activity  at  Mt  Alexander  including  definition drilling along the Cathedrals Belt and to initiate regional exploration on underexplored areas, including  regionally in the Mt Alexander Greenstone Belt.   Dave O’Neill is  an acknowledged nickel sulphide expert, having had over 20 years of experience in the mining industry, which included gaining considerable expertise in the nickel sulphide sector through senior roles with WMC Resources, BHP and Western Areas.


Nickel price stabilising around US$5.30/lb

Nickel prices are stabilising at around US$5.30/lb after having retraced by 26% from the recent peak of US$7.14/lb in June 2018 despite the continued production deficit that has significantly reduced LME nickel stockpiles to around 200kt, down from 368kt a year ago. The ongoing production deficit of over 110ktpa is likely to stay around that level for the next few years even with further increases in lateritic nickel output in the form of Asian nickel pig iron and the planned increase in high purity material from several major sulphide producers. Nickel demand is forecast to increase strongly over the next few years from its role as a key ingredient in new generation batteries, particularly for the forecast strong rise in electric vehicle (EV) production.


Investment thesis – Spec. Buy, valn. $0.26/sh (prev. $0.30)

Diamond drilling over 2018 has increased the footprint of the shallow, high value nickel-copper-cobalt-PGM mineralisation in SGQ’s Mt Alexander Project, with definition drilling being planned for 2019. SGQ also intends to initiate regional exploration of underexplored parts of the Mt Alexander Greenstone Belt. We have reduced our heavily risked and equity diluted valuation of the company by 13% to $0.26 per share after incorporating the 2018 drilling results and SGQ’s current share capital, share price and cash position. We see 2019 as an important year for the company as it increases its activities with a strong focus on moving towards potential nickel development of the Cathedrals Belt. Speculative Buy recommendation retained.


Expanded high value nickel+ footprint


Most recent intersections are the best ever for Mt Alexander

SGQ carried out a considerable amount of diamond drilling over 2018, most of which was directed at testing EM targets in the 75% owned Cathedrals Belt of the company’s Mt Alexander Project. The results of this drilling have expanded the footprint of the high grade nickel-copper-cobalt-PGM mineralisation at the Investigators, Cathedrals and Stricklands Prospects. Laboratory assays have recently confirmed that the most recent drill holes at the Investigators Prospect (MAD 126 and MAD127, Figure 1) achieved the best intersections to date at Mt Alexander. The following are summaries of the most recent results from these drill holes:


  • MAD126 intersected 7.86m averaging 5.70% nickel, 2.11% copper, 0.18% cobalt, 2.65g/t platinum group metals (PGM) and 0.15g/t gold from 184m down hole, including 5.25m averaging 6.95% nickel, 2.67% copper, 0.23% cobalt, 3.10g/t PGMs (2.52g/t palladium and 0.58g/t platinum) and 0.15g/t gold from 185m down hole; and
  • MAD127 intersected 8.49m averaging 5.78% nickel, 2.64% copper, 0.18% cobalt, 3.61g/t PGMs and 0.19g/t gold from 183.9m down hole, including 6.39m averaging 6.48% nickel, 2.77% copper, 0.21% cobalt, 3.68g/t PGMs (2.96g/t palladium and 0.65g/t platinum) and 0.15g/t gold from 184.42m down hole

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