St. George escalates nickel sulphide exploration

Highlights:

  • Multiple drill‐ready targets established for Phase 2 drilling in October 2014
  • New prospect at Desert Dragon South covers optimal structural area for nickel sulphides
  • Exploration expanded at Desert Dragon North with evidence of granite dome
  • Exploration work at Cambridge North to be fast‐tracked with MLEM (moving loop electromagnetic) survey identifying new EM targets
  • EM conductors from ongoing regional MLEM survey are being prioritised in conjunction with Newexco for test drilling
  • New nickel sulphide targets being added to strong pipeline of prospects


ADVANCED EXPLORATION AT NICKEL SULPHIDE PROSPECTS

St. George Mining Limited (ASX: SGQ) (‘St George Mining’ or ‘the Company’) is pleased to provide an update on the Company’s growing pipeline of nickel sulphide prospects at the Company’s 100% owned East Laverton Property in Western Australia.

Exploration work at our high priority nickel sulphide prospects has intensified with multiple nickel sulphide drill targets – including electromagnetic (EM) conductors and geological targets ‐ being generated ahead of the Phase 2 drilling programme, scheduled to commence in early October 2014.

Exploration is being escalated at the high‐value Desert Dragon North, Desert Dragon South and Cambridge North prospects, situated on the fertile Stella Range belt. Follow‐up work is also being conducted over a range of prospects only partially tested by previous drilling carried out by St George, as well as targets established by BHP Billiton Nickel West during the previous Project Dragon farm‐in arrangement.

The ongoing target generation by St George’s technical team highlights the large size and depth of the exploration potential at our East Laverton Property ‐ which covers over 2,000 sq km and 3 ultramafic belts with a combined strike length of over 130km ‐ and its potential to emerge as a new nickel field.

St George Mining Executive Chairman, John Prineas, said: “We are actively continuing our systematic exploration of nickel sulphide targets at East Laverton.

“We have developed a comprehensive geological, geophysical and geochemical dataset, which is constantly being expanded with new drilling results and exploration data.

“This important knowledge is being used to generate new  nickel sulphide prospects and to advance existing prospects to a drill‐ready status.

“We have built a very strong pipeline of prospects with tremendous exploration upside.”



NEW NICKEL SULPHIDE PROSPECT ‐ DESERT DRAGON SOUTH
The Desert Dragon South prospect covers a geologically and structurally complex area where the districtscale “Churchill” lineament intersects the fertile Stella Range ultramafic belt. Magnetic data indicates intense folding, thrust faulting and shearing of the ultramafic belt in this area; see Figure 1.

The Churchill lineament is orientated normally (at ~90 degrees) to the NW trending rift structures, which control the orientation of the greenstone belts at East Laverton.

These rifts and the rift‐normal (cross) structures are a setting where the komatiite channels host greater than normal volumes of magma, and higher flow rates of the hot turbulent MgO‐rich ultramafic lava.

Exceptionally hot komatiite magmas are very favourable for the formation of high grade nickel sulphide mineralisation, which makes these cross‐rift intersections priority exploration areas.

Desert Dragon South lies immediately east of the komatiite channel flow intersected by drill hole DRAC35 (18 m @ 0.41% Ni from 100m). This supports the potential for the presence of fertile channel flows within the local area of Desert Dragon South.

The MLEM survey recently completed over Desert Dragon South detected a large and complicated EM response with a number of flat‐lying EM horizons identified. The EM responses are superimposed on each other, and the number of stacked conductive horizons increase from the north to south of the survey area.

The EM responses are interpreted to represent sulphide‐rich sedimentary units with potential for masked massive nickel sulphide mineralisation.

In settings like Desert Dragon South, a greater reliance is placed on exploratory drilling as an initial exploration tool, with use of down‐hole EM (DHEM) surveys to investigate the EM responses at depth. The Flying Fox nickel deposit at Forrestania is underlain by sediment and is an example of a major discovery in this kind of scenario.

Exploration by drilling and geophysics is being designed for Desert Dragon South as part of Phase 2 of the 2014 drilling programme at East Laverton which will start next month.

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