SGQ (ASX) Ann: Diamond Drilling Underway at Mt Alexander

Originally posted by helmenesh: ↑

Greetings Gracie and gc2016
My sincere apologies for staying off the radar and failing to post over the last few months. Whilst I am improving slowly health-wise, I have welcomed the slow progress with SGQ to reflect on the company’s direction and came to the conclusion that due to the geological nature in the region; the focus has to change from an approach of shallow near-surface exploration philosophy to a search for deep-seated targets which are very time consuming and expensive. I think SGQ have realised this and proceeded to pursue these targets with the use of the seismic surveys.

Whilst I have used geophysical techniques extensively during my career, I am not a qualified geophysicist and therefore cannot comment on the merits of the seismic surveys the company is carrying out. Major mining companies use seismic to compare seismic results from major sized orebodies with results of peripheral seismic anomalies. SGQ does not have proven mineralised structures to which they can compare the 450m anomaly the seismic survey threw up. In other words, to go from the known to the unknown.

I will agree with ozblue and mulac1 however that 3D surveys may prove more reliability in the result interpretations as 2D really sees one vector. If I am not mistaken, the seismic surveys will result in a better definition of stratigraphy and lithology, but it is known that we have intrusive ultramafics in a granitic or porphyritic regime comprising this structure. I’m sure SGQ has its reasons for doing seismic, but I would have thought electrical geophysical techniques would ultimately offer better returns for their buck.

I would now guess that the 450m structure will be drilled with a hope and a prayer that it contains economic sulphides tucked in one of the swells along the - dipping/plunging - structure mentioned in Sandy’s reply to ozblue.I imagine that this will be used as a mother hole to optimistically fan out drillholes into other anomalies along the 450m. structure. Otherwise, the exercise will have to be repeated elsewhere.

The question arises whether SGQ can really afford this sort of exploration and the reason why I backed off from commenting in recent reporting.
I wish all our friends on HC well and to everyone a very happy festive season.

Cheers,
Helmenesh

Expand

Hi @helmenesh

Glad to hear from you and that you are getting better, albeit very slowly.We all miss your posts.

Appreciate your very knowledgeable views and I don’t think anyone disagrees that 3D seismic is much better that 2D but it comes at a significant cost.I’m estimating the 3 x 1km spacing lines over the 12 lineal kms cost St George around $80K to $100K.Covering the same area with a 3D seismic survey where the spacing between the lines needs to be around 100m to do it properly means it would cost the company $800K to $1M.Even if you increase the spacing it’s still big money.

It also acknowledge that major mining companies with huge reserves and millions of dollars in the bank use seismic with great success to compare results from major sized ore bodies with results of peripheral seismic anomalies.What I question is your comment that St George does not have any proven mineral structures and / or results to which they can compare so they are going from the know to the unknown.I say this because the announcement contains the following important statements that suggest otherwise:

“Modelling and interpretation of the new seismic data have identified a large target along the down-dip continuation of the Cathedrals structure at depths yet to be explored. The target has the same reflective properties as the known shallow massive sulphides.”

“Significantly, there are no other rocks known to be present in the Cathedrals Belt that could record a similar seismic recording to massive sulphides.”

“The target is modelled in 2D with a dip-extent of more than 450m. The east-west strike length and thickness cannot yet be modelled due to the 2D nature of the survey.”

“The target dips to the north-northwest, consistent with the dip of the host structure.”

“The seismic data shows that the Cathedrals Belt structure continues in the down-dip direction into E29/548 (100% St George), with the new large target located within that tenement.”

“Line 1 of the seismic survey was completed over an area with extensive drilling at Investigators. The type of rocks intersected included massive nickel-copper sulphides, mafic rocks and granite. The drill hole data for these various intersections provides a reference point for interpreting the seismic recordings.”

“Encouragingly, the reflective properties at the new target are consistent with the reflective properties of the known massive sulphides identified from existing drill core.”

Figure 1’s down plunge vectoring also provides lots of encouragement.

This is all ample reason for me to back management’s decision to spend around $220k to $260k to drill a deep hole into this 450m target rather than spend $800K to $1M doing a comprehensive 3D seismic which will take at least 3 months to complete, as that’s how long the simpler 2D seismic took.

Once St George drill the hole which I’m hoping will be completed by late February 2022, we will all know lots more and hopefully be very happy holders.

Look after yourself Helmenesh and hope to see you very soon.

Cheers
SandyC