A starter mine for Stricklands

There has recently been a lot of discussion regarding an initial mineral resource estimate for the possible starter mine at Stricklands.

There has also been debate as to how SGQ would move forward on issuing a MRE for Stricklands. The debate has mostly focused on Clause 38 of the JORC 2012 Code that precludes scoping studies from forming the basis of a MRE.

John Prineas has made numerous references to the XPS test work, in announcements and QRs, highlighting the importance of knowing the economic extraction possibilities of the shallow Strickland's metals.

John has provided the following clarification regarding the rationale they are employing.

"Clause 20 of the 2012 JORC Code provides some guidance on what should be considered when issuing a mineral resource. It states that a mineral resource "is a realistic inventory of mineralisation which, under assumed and justifiable technical, economic and development conditions, might, in whole or in part, become economically extractable."

As we have frequently mentioned in our announcements and presentations, the concept for the shallow Stricklands deposit is to potentially have a small starter mine. Given that we are assessing a small polymetallic deposit, it is very important to understand how much of the various metals can be economically extracted. For example, in our ASX Release of 21 December 2020, we indicated that initial metallurgical test work showed that the oxidised disseminated mineralisation that sits at the top of the Stricklands deposit is not economic.

The test work is continuing with XPS in Canada. The work has been delayed due to issues related mainly to COVID-19 restrictions. Until we have final test work, we think it prudent to not make any final decision on the parts of the Stricklands deposit that can be considered economic and a mineral resource."

John has also indicated that adding Cathedrals and Investigators to the MRE is also an option.

From my perspective, it is still very much a wait and see as to whether an initial Strickland's MRE can prove the economic test.

Cheers
Mulac1