Nickel and gold focused explorer St George Mining (ASX: SGQ) today announced it hit 17m of nickel-copper sulphides while drilling at the Mt Alexander project in central Western Australia.
The intersection occurred at 37.5m, which was drilled within a large electromagnetic anomaly identified at the Stricklands prospect.
According to the company, the massive nickel-copper sulphides comprised a total of 10.1m of the overall intersection, averaging 5.5% nickel and 2.1% copper.
St George executive chairman John Prineas said the results were “very favourable for the economics of a potential mining operation” at the Mt Alexander project.
“The results in MAD71 are outstanding with thick widths of high grade mineralisation at shallow depths,” he stated.
“We have already established recurrent high grade mineralisation over a 3.5km strike length in the Cathedrals Belt. Now with the exceptional intersection in MAD71, the confidence in the resource potential at Mt Alexander continues to build.”
The large anomaly being tested by MAD71 at the Stricklands prospect was identified from a Samson fixed loop electromagnetic survey completed earlier this year.
MAD71 was drilled 15 metres to the north of an initial test hole, MAD49, and intersected weathered ultramafic with up to 2% nickel in XRF analysis before intersecting primary nickel-copper sulphide mineralisation in saprock and fresh rock.
The company plans to complete a downhole electromagnetic survey later this week, with further drilling at the Stricklands prospect to be prioritised after review of the survey data.
Last week, St George announced the successful intersection of nickel-copper sulphides at the nearby Cathedrals prospect, extending the known high-grade mineralisation at the Mt Alexander project.
One drill hole intersected 3.25m of sulphides on the basal contact of the Cathedrals ultramafic with estimated average values of 8% nickel and 3% copper.
In addition, hole MAD66 intersected 2.24 metres within the Cathedrals footwall fault, with readings ranging from 2% to 11% nickel and up to 1.5% copper.
The Mt Alexander project lies 120 kilometres south-southwest of the Agnew-Wiluna belt in central Western Australia. The project comprises four granted exploration licences.
The Stricklands and Cathedrals are 75% owned and managed by St George Mining, with 25% owned by Western Areas (ASX: WSA). The other three exploration licences in the project are wholly-owned by St George.
Shares in St George Mining closed the day up 73% on the news.