Ann: More Thick Intercepts Down-Plunge of Shallow Deposits, page-10

Hi @mitis @rhsurfer

You two must have read a different announcement to the one published this morning as I found today’s announcement very encouraging and further reason to be excited.

St George has hit further sulphides with some massive sulphides at depth. This makes 3 consecutive at depth sulphide hits even though they have missed all 3 target EM plates. The MAD173 hole deviated 10m (which is huge in the scheme of things) and yet it still hit 11.2m of nickel sulphides including 0.23m of massive sulphides and MAD 174 hit 4.57m of nickel sulphide including 0.36m of massive sulphide. Sure this isn’t much massive sulphide, but the results prove they are there along with lots of disseminated and blebby sulphides even though they missed the 3 targets at depth.

Also the last 3 drilling results confirm an east-west strike of nickel-copper sulphide mineralisation at depth for more than 800m with down plunge high-grade mineralisation increased to more than 300m. This is HUGE imo.

Imo St George is looking more and more attractive and compelling with every announcement and we will soon be well rewarded.

Some very positive and important extracts from today’s announcement:

MAD173 and MAD174 are large step-out holes located down-dip at the Investigators Prospect and, together with MAD172, confirm an east-west strike of nickel-copper sulphide mineralisation at depth for more than 800m.

Down-plunge extent of high-grade mineralisation is increased to more than 300m with mineralisation open to the north-west and in the down-dip direction Style of mineralisation intersected is consistent with mineralisation that has been structurally remobilised from a larger and proximal source of high-grade nickel-copper sulphides

Drilling of deeper EM conductors has delivered more thick intercepts of high-grade mineralisation.

Drill holes MAD173 and MAD174 have intersected nickel-copper sulphide mineralisation along the down- dip extension of the Investigators ultramafic unit at depths not previously explored.

Together with MAD172 – reported in our ASX Release dated 12 November 2019 ‘Thick Intercept in Deeper Drilling of Conductors’ – the drill holes establish a deeper east-west strike of high-grade mineralisation of more than 800m.

The shallow nickel-copper sulphide deposits at Investigators commence 30m from surface. The latest intersections increase the down-plunge extent of high-grade mineralisation to more than 300m.

“These drill results are further evidence of the large high-grade mineral system at the Cathedrals Belt, with significant down-plunge extensions established and mineralisation open in the down-dip direction. With only limited drilling at depth, we believe there is strong potential to significantly increase the scale of defined mineralisation, both along strike and at depth.”

MAD173 intersected 11.2m of nickel-copper sulphides from 263.1m downhole:

263.1m to depth 272.36m Ultramafic with disseminated sulphides and blebby sulphides increasing with (5-10% sulphides comprising pentlandite (pn), chalcopyrite (cp) and pyrrhotite (po)

272.36m to 272.43m Massive sulphides with average XRF readings of 0.4% Ni and 11.8% Cu* (100% sulphides comprising pn, cp, po)

272.43m to 274.14m Ultramafic with disseminated sulphides (10% sulphides comprising pn, cp, po)

274.14m to 274.3m Massive sulphides with average XRF readings of 7.2% Ni and 3.88 %Cu* (100% sulphides comprising pn, cp, po)

The target EM plate was modelled with conductivity of 10,000 Siemens, which is consistent with massive sulphides.

Whilst successfully intersecting nickel-copper sulphides, the drill hole diverted over 10m from the planned trajectory and did not intersect the target EM plate. This suggests that there is potential for additional massive sulphides proximal to MAD173.

The chalcopyrite (copper sulphide) observed in the mineralisation intersected by the recent deeper holes, including MAD173, appears to be of a higher proportion of the total sulphides typically seen elsewhere in the Cathedrals Belt.

As chalcopyrite is generally more readily remobilised than pentlandite (nickel sulphide), this may indicate that the mineralisation intersected by these holes has been sourced from a nearby and larger accumulation of nickel-copper sulphides. Importantly, the drilling is open at depth and to the north-west.

MAD174 intersected 4.57m of nickel-copper sulphides from 223.45m downhole:

223.45m to 225.58m Ultramafic with rare disseminated sulphides (<5% sulphides comprising pentlandite (pn), chalcopyrite (cp) and pyrrhotite (po)

225.58m to 225.94m Massive and stringer sulphides (80% sulphides comprising pn, cp and po)

225.94m to 227.64m Ultramafic with stringer sulphides and strongly disseminated sulphides (30% sulphides comprising pn, cp, po)

227.64m to 228.02m Ultramafic with occasional stringer sulphides and weakly disseminated sulphides (10% sulphides comprising pn, cp, po)

The mineralisation intersected by MAD174 may not fully account for the strong target conductor.

The current drilling is located within an area of strong SAMSON EM anomalism which has not yet been explained by drilling, and is interpreted as likely to be related to further nickel-copper sulphide mineralisation.

These holes have successfully intersected sulphide mineralisation at depth, possibly adding a significant volume of mineralisation to a potential resource at this Prospect and indicating significant further exploration upside down-dip.

Happy Days

SandyC