Potential for a large-scale nickel discovery
St. George Mining (AX:SGQ) has 100% ownership of the East Laverton Project. The key feature is the large-scale potential for nickel sulphide mineralisation. Reconciliation work has already been carried out and targets are now well defined. With an escalation of exploration activity in the near term, there are many opportunities for a nickel discovery.
High MgO ultramafics similar to Agnew-Wiluna belt
SGQ’s main project is East Laverton. This is on the prospective eastern margin of the Yilgarn Craton, 230km north-east of Kalgoorlie, Western Australia. SGQ holds 100% of a tenement package extending over 2,000km2. The high magnesium oxide (MgO) ultramafic rocks at East Laverton have a similar composition to the ultramafics at the Agnew-Wiluna belt where there are several world-class nickel sulphide deposits. In recognition of the potential of the East Laverton tenements, BHP Billiton (L:BLT) Nickel West (BHP:ASX, BLT:LN) agreed to farm into a core of SGQ’s tenements in 2011. Exploration results were positive but BHP withdrew in late 2013 due to BHP’s company-wide pullback in exploration-related expenditure.
Experienced technical management and consultants
SGQ has followed a systematic exploration programme that has identified extensive ultramafic belts, with multiple occurrences of disseminated nickel sulphides. Massive high-grade nickel sulphides, which are the commercial objective of the exploration, are often in proximity to the disseminated sulphides. SGQ’s technical management and its geophysical consultants have extensive experience in nickel exploration in the region and have been associated with several prominent discoveries. Conventional exploration plus advanced geophysics are being employed to define targets. Reconciliation work has established a portfolio of quality targets. An escalation of exploration activity will now start drilling of massive sulphide targets.
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