Ann: Mt Alexander - Exploration and Development Update, page-45

Got a reply from JP from a concerned email I sent last night about a few company issues:


thanks for your email and ongoing support.



I will take your comments on board and give them some thought.



We have at times been criticised for having too many announcements that create unwarranted volatility in our share price. We have tried to strike a balance where we keep shareholders fully informed of material matters at regular intervals.



In regard to the 40+ EM conductors, these are largely at Investigators. After testing several and confirming nickel-copper sulphides, we put the rest “in the bank” – the conductors are small and close to known nickel sulphides, and therefore more suitable for a resource drill-out. Which is what we are planning at Investigators now.



This approach allowed us to explore new targets on other parts of the Cathedrals Belt, including at depth, which offered the potential of a game-changing discovery. I think we have messaged this very clearly this year with our deeper drilling.



The deeper holes this year have successfully intersected the host mafic-ultramafic unit as well as some disseminated sulphides which, although may not be economic in their own right, are highly supportive of the potential for higher grade mineralisation along strike.



Drill rig availability in WA this year has been extremely stretched. We were unable to get the continuity we wanted but are lucky to have a diamond rig lined up for January to test the best new EM conductors.



I know some shareholders are excited about our deeper exploration and would like to see us do more of that. Others contact me and suggest we cease deep exploration and focus on the development activities only.



We think the best approach is a dual strategy where we progress both the starter mine proposal and the deeper exploration.



Our technical team is one of the best in the business – both our in-house geologists and our external geophysicists. They have worked on many nickel sulphide discoveries and successful nickel mines in WA. Our Mt Alexander Project is in good hands.



If we haven’t yet delivered the outcome in investors expectations, its more likely due to the unique nature of our mineralisation. Its freakish – an east-west belt rather than the typical north-south orientation of nickel belts in WA, and high grade nickel-copper-cobalt-PGE mineralisation never seen before in WA.



The wait is frustrating but we are closer to unlocking the true value in our project. My advice is that it is not the time to blink. But investors can make their own investment decisions to suit their personal circumstances.



Best wishes for the festive season. We will be working hard to deliver a Happy New Year to St George shareholders.



Regards

John P