St George Mining Ltd (ASX:SGQ) has achieved a number of resource development milestones at the shallow, high-grade nickel-copper sulphide deposit at Stricklands prospect within its Mt Alexander Nickel-Copper Sulphide Project in WA.
Drilling and resource development programs in progress at the flagship project in the north-eastern Goldfields also include diamond drilling of new conductive targets at the Investigators prospect, which is underway.
At Stricklands deposit, the following resource development milestones have been achieved:
- Reverse circulation (RC) drill-out has finished with 52 holes completed for 4,077 metres of drilling with assays underway;
- Metallurgical and geotechnical diamond core drilling at Stricklands has finished with 661.6 metres of PQ diamond drilling completed; and
- Core samples are being sent to Canada for detailed metallurgical test-work which includes development of a production flowsheet which will be integral to the completion of the scoping study for the potential mining operation at Stricklands.
The shallow Stricklands mineralisation has been defined over an area that is about 450 metres long, 50 metres wide and 80 metres deep.
Entech, the external geological consultancy engaged by St George to issue a JORC-compliant resource estimate for Stricklands, will receive all drill hole data and assay data as soon as available.
Once issued, the estimate will be used in the scoping study for a potential mining operation at Mt Alexander including the design of alternative open-pit shells for mining.
St George executive chairman John Prineas said: “We are very pleased to have completed the resource drill-out at Stricklands as well as the metallurgical holes required for resource development work.
“These are important milestones for the scoping study into a potential starter mine at Mt Alexander.
“The thick intercepts of nickel-copper sulphides in the latest met holes are a reminder of the excellent mineralisation that we have at Stricklands.”
Plan view of the Cathedrals Belt showing areas of completed and planned drilling, overlaying interpreted geology and magnetics.
Diamond drilling underway
Diamond drilling of new conductive targets at Investigators prospect is underway.
Drill hole MAD180 is planned to be drilled to a downhole depth of 800 metres to test the large conductive target at Investigators identified by the magnetotelluric (MT) and audio-magnetotelluric (AMT) surveys.
Prineas said: “Drilling of the deep MT conductive targets has now commenced with drill hole MAD180 targeting the compelling new conductive feature at Investigators.
“A second diamond rig is scheduled to arrive at site shortly which will accelerate testing of these new and exciting deep conductive targets.“
The rig will arrive around July 14 with both diamond rigs to operate 24/7 on-site.
The drilling of MAD180 is co-funded by the grant awarded to St George by the Western Australian Government under its Exploration Incentive Scheme (EIS).
The terms of this co-funding arrangement require drilling to commence on or after 1 July 2020 and to be completed by 30 June 2021.