SGQ Ready to Drill Nickel-Copper Sulphide Targets at Mt Alexander Project

SGQ Ready to Drill Nickel-Copper Sulphide Targets at Mt Alexander Project

Mining and exploration company, St George Mining Limited (ASX: SGQ) is a micro-cap company with the market capitalization of circa $38.76 Mn as of 12 February 2019. Recently, the company has announced that the group is ready to drill Nickel-Copper Sulphide Targets at the Mt Alexander Project which is scheduled to commence on 18 February 2019. As at 30 June 2018, the current ratio stood at 4.32x which is 93.5% higher than the prior year, signifying decent liquidity position to meet its short-term liabilities.

As per the release, the drilling will start with an RC drill programme which will have 37 drill holes for more than 5,500 metres of drilling. Further, the company is also planning a diamond drill programme which will start at a later date to test the Downhole electromagnetic (DHEM) conductors. Further, the company has launched its drill programme for 2019 in which the company will be drilling at the newly defined prospects at Fairbridge and West End. While commenting on the launch of the Drill programme for 2019, the company’s Executive Chairman, Mr. John Prineas told that there is strong potential to discover further nickel-copper sulphides at each of these prospects.

The Fairbridge Prospect is currently covering a 1,000m east-west strike of the Cathedrals Belt, and in December 2018, the company’s technical team identified Nine new nickel sulphide gossans at Fairbridge. The presence of new nickel sulphide gossans at the Fairbridge Prospect suggests that this region of Cathedrals Belt may have high-grade nickel-copper sulphides at depth.

The company has also informed about a 2.5km extension of the Cathedrals Belt. As per the company’s announcement, the Cathedrals Belt is interpreted to extend from the western margin of the Investigators Prospect to the Ida Fault.  A major part of the western extension of this belt is interpreted to lie underneath a paleochannel which could interfere with the effectiveness of surface EM surveys.

At the Cathedrals Belt, the company has identified copper values at the Cathedrals Prospect that are higher than those at the Investigators Prospect which suggests that Investigators may be closer to the source. The company believes that a drill testing the western extension of the Cathedrals Belt will help in assessing whether the mineralization is associated with the Ida fault.

The company is going to complete the series of wide-spaced, deep holes and it will complete DHEM surveys to further investigate for sulphide mineralization at depth. The company has also informed about Mt Alexander Belt which is an unexplored 7Km strike of mineralized ultramafic. The historic drilling at Mt Alexander Belt has intersected widespread nickel sulphides which consist of large nickel-copper sulphides.

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The Sultans Prospect of the Mt Alexander Belt has two drill holes (MARC40, MAD1) which have intersected massive sulphides.

The array results of the two drill holes include –

  • MARC40 – 2m @ 2.14% Nickel from 64m
  • MAD1 – 80cm @ 2.85% Nickel, 0.13% Copper and 1 g/t PGEs from 115.4m

Now, let us have a quick look at St George Mining Limited’s stock performance and the return it has posted over the last few months. SGQ’s shares traded at $0.130 with a market capitalization of ~$38.76 Million. Meanwhile, the stock has generated a negative YTD return of 7.14% but posted positive returns of 8.33% in the last six months (as at February 12, 2019). It had a 52-week high price of $0.230 and touched 52 weeks low of $0.105, with an average volume of 285,539 approximately.


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