Ann: Drilling to Resume at Mt Alexander, page-19

Hi @Corker.

Yes, very exciting that St George is now looking at the 100% northern tenement they own. About time!

I’m not sure why everyone is still down on St George as this announcement and the quarterly report contain some very promising information. Yes, the St George cashflow is lower than expected at $3.4m but that is to be expected as this stock is in the mining exploration game and it is risky. In addition, the timing of the RC drill for March 2021 is disappointing given the company has had ample time to arrange the drilling and I am disappointed with this. However even with these disappointments, in the overall scheme of things there are some very positive takes out from the latest announcements.

I say this because in addition to the confirmation that the Stricklands metallurgical and the deeper DHEM drilling targets are starting this week, and which we all new was going to happen, I really like the additional developments that shows the overall St George plan and exploration opportunities for the Mt Alexander area. The key takeouts are:

• There is progress regarding the northern 100% owned St George tenement E29/548 that lit up the MT/AMT survey. Many of us would have gone all out and drilled a couple of holes 6 months ago as the potential mineralisation starts at the surface and looks to get stronger as it goes straight down past 1,000m but we should all be happy St George is now doing something to progress this area. The ground Moving Loop EM survey to test the juicy yellow / orange fault structures identified by last year’s MT / AMT survey “Road Map” parallel to the Cathedrals Belt will hopefully identify conductive bodies that represent massive nickel- copper sulphides which will give them the confident to finally start drilling.

• They are planning to do deep stratigraphic holes down dip from the latest DHEM targets are Westend and Investigators. These will step out around 200m to 400m north from the MAD185, MAD192 and MAD193 holes which are approximately 500m to 800m north-west of known massive sulphides in the Cathedrals Belt.
• The petrographic analysis completed on drill cores from the MAD180 and MAD181 49.45m thick intersect of mafic-ultramafic intrusive unit 500m north of Investigators confirms that the rock types (leuconorite and **bronorite) are the same intrusive as the nickel-copper sulphide deposits found at Nova-Bollinger, Savannah and Nebo-Babel and indicates a deeper magmatic chamber. The presence of small amounts of zinc-lead sulphides in addition to magmatic nickel-copper sulphides suggests contamination with sedimentary sulphides or volcanic massive sulphides (VMS) in the magmatic plumbing at depth. This is typically associated with the kind of geological event that is associated with the formation of very significant mineral deposits.
• There will be new airborne magnetic surveys for two recently acquired tenements E29/972 and E29/1041 that will search for linear magnetic features that may represent ultramafic belts similar to the nickel-copper sulphide bearing Cathedrals Belt.
• The rock chip samples from E29/1041 returned elevated readings for nickel and copper supporting the potential for nickel-copper sulphide mineralisation within the area and a new geochemical soil survey will be completed over a broad area to test for the presence of mineralised ultramafics. There are two interpreted structures over an 8km strike cross-cut and present as distinct east-west orientated magnetic feature. A similar combination of magnetic features defines the east-west Cathedrals Belt. A soil geochemical survey will be completed over the area of interest at E29/1041 in Q1 2021. The aim of the soil survey is to confirm the presence of mafic-ultramafic units and or nickel-copper anomalism in the area.
• A program of Works has been approved by the Department of Mines, Industry Regulation and Safety (DMIRS) for the drill-out with 5,000m of drilling planned at Investigators and 6,000m of drilling planned at Cathedrals for the validation of additional highly profitable shallow mines.
• St George has been acquiring additional tenements around the Mt Alexander area which indicates that they are very confident about the future discovery and further discoveries in the Cathedrals Belt.

In my view and given the above, now is not the time to be selling as even though shareholders patience and faith has been tested this story has not ended – far from it!

Very exciting times ahead.

Cheers, good luck to everyone and stay patient!
SandyC