Ann: Drilling Underway at Mt Alexander, page-72

GROWING ‘FIELD OF EM CONDUCTORS’ POINTS TO COMPELLING NICKEL-COPPER SULPHIDE POTENTIAL AT MT ALEXANDER• Exceptionally strong off-hole electromagnetic (EM) conductor identified from downhole EM (DHEM) survey in MAD202 at the West End Prospect• New conductor is modelled with conductivity of 81,000 Siemens and has an electrical signature consistent with a massive sulphide source• The conductor is coincident with a series of large gravity and magnetic highs, further supporting the potential of this target to represent massive sulphides• New conductor is within a ‘field of EM conductors’ recently identified at the West End and Investigators Prospects, indicating potential for the presence of a significant volume of mineralisation in or near this areaGrowth-focused Western Australian nickel company St George Mining Limited (ASX: SGQ) (“St George” or “the Company”) is pleased to announce an exciting new EM target for massive nickel-copper sulphides at its flagship high-grade Mt Alexander Project, located in the north-eastern Goldfields.The EM conductor is modelled with conductivity of 81,000 Siemens, one of the highest of any conductor identified at Mt Alexander to date. The conductor was observed in the mid to late time data of the DHEM survey and recorded a time constant of 100 milliseconds. The combination of conductivity and time decay of this kind are typical of massive sulphides.The new EM conductor is coincident with a trend of prominent gravity highs that are interpreted to represent dense rocks – further confirming the conductor as a compelling target for mineralisation.Importantly, the new conductor is proximal to several other EM conductors recently identified by the DHEM surveys at West End and Investigators – in drill holes MAD196, MAD199, MAD200 and MAD201. This field of multiple conductors supports the potential of significant sulphide mineralisation in this underexplored area of the Cathedrals Belt.John Prineas, St George Mining’s Executive Chairman, said:“Our systematic and concurrent use of drilling and downhole EM surveys has delivered another stand-out result with the identification of one of the most exciting EM conductors at Mt Alexander to date.“We have a 100% success rate in confirming conductors of this kind as nickel-copper sulphides, so we are confident that drilling this target will deliver another discovery of high-grade mineralisation.“The growing number of significant mineralised intercepts and downhole EM conductors at West End and Investigators demonstrates a very large and fertile mineral system and further supports the potential for a significant deposit in this area.ST GEORGE MINING LIMITED ACN 139 308 973Suite 2, 28 Ord Street West Perth WA 6005 |PO Box 100 West Perth WA 6872www.stgeorgemining.com.au | Phone +61 8 6118 2118 1 ASX / MEDIA RELEASE“With demand for new sources of nickel sulphide booming and investors actively looking for nickel growth stories, we are excited that more opportunities to expand the mineralised footprint at Mt Alexander are continuing to evolve for our shareholders.”DRILLING OF GRAVITY TARGET DELIVERS OUTSTANDING EM CONDUCTORMAD202 was drilled to test a large coincidental gravity and magnetic anomaly at West End – factors that are indicative of potential intrusive rocks and nickel sulphide mineralisation. See our ASX Release dated 27 May 2021 Nickel-Copper Sulphides Intersected Down-Plunge for details of this target.MAD202 was drilled to a downhole depth of 444.1m and intersected intrusive rocks from 421.95m to 436.8m. The volume of intrusive rocks intersected in MAD202 is unlikely to explain the large gravity high.The DHEM survey in MAD202 indicated that a strong conductive body is located slightly below and to the north-east of the intrusive unit intersected by the hole, consistent with our geological interpretation of the location of the mineralised Cathedrals horizon and along the trend of gravity highs.An EM plate with conductivity of 81,000 Siemens and dimensions of 13m x 10m has been modelled for this conductor. The EM plate is considered the strongest part of the conductive response in the survey data. Testing of similar EM plates in the Cathedrals Belt has indicated that they do not represent an accurate size and volume of total sulphides, but are more often vectors to larger areas of mineralisation.The MAD202 conductor is coincident with a large gravity high and strong magnetic trend which supports the potential for this conductor to be associated with significant mineralisation along strike or down-dip.Figure 1 – plan view map of West End and Investigators (against gravity data) showing new DHEM conductors and prior drilling. Gravity highs are shown by warmer colours (white, red and yellow). High density massive sulphides and their host rocks will typically present as gravity highs. Less dense material or cover are represented by cooler colours (blues and purples). 2 ASX / MEDIA RELEASESeveral other EM conductors have been identified from the DHEM surveys completed in drill holes proximal to MAD202:• MAD196 – three off-hole EM conductors identified, with the strongest having conductivity of 69,926 Siemens• MAD200 – three off-hole EM conductors identified, with the largest having a strike length of 250m For further details of these additional EM conductors, see our ASX Release dated 6 July 2021 New EMConductors at Mt Alexander.ASSAYS CONFIRM PLUNGE EXTENT FROM MAD199 DISCOVERYMAD201 was drilled as the first step-out hole from the deep MAD199 discovery at Investigators which intersected:11.07m @ 1.58% Ni, 0.71% Cu, 1.23g/t total PGEs from 333.5mincluding3.9m @ 3.98% Ni, 1.8% Cu, 3.1g/t total PGEs from 340.67mand including1.28m @ 6.54% Ni, 2.96% Cu, 3.88g/t total PGEs from 342.12mMAD201 intersected 2.4m of nickel-copper sulphides from 434.6m downhole – 125m down-plunge of MAD199 – with assays now confirming:2.4m @ 1.66% Ni, 0.55% Cu, 0.52g/t total PGEs from 434.6mand including0.26m @ 6.18% Ni, 1.2% Cu, 0.79g/t total PGEs from 436.76mThe downhole EM survey in MAD201 identified three very strong conductors located up-dip towards the high-grade intersection in MAD199. The conductors are modelled with conductivity of 120,400 Siemens, 30,000 Siemens and 23,000 Siemens, respectively.The DHEM conductors are interpreted to have a massive sulphide source, strongly supporting the potential for more massive nickel sulphides along the 125m down-plunge extent between MAD199 and MAD201.The field of multiple EM conductors identified at West End and Investigators suggests that this area is a very active part of the Cathedrals Belt mineral system, with potential for the conductors to be associated with a greater volume of mineralisation along strike or down-dip.For further details of the MAD199 discovery, see our ASX Release dated 22 June 2021 Assays Confirm High- Grade Discovery at Mt Alexander. Table 1 below contains assay details for MAD199 and MAD201.Technical commentary on DHEM modelling:The modelled plates for the EM anomalies are interpreted to represent a vector to the strongest part of the EM conductors and are a reliable targeting tool to test for the presence of sulphide mineralisation.Modelling cannot always accurately predict the geometry and size of sulphide deposits, particularly if complex, and the modelled plate is not a definitive measure of the scale of all potential mineralisation.A DHEM survey may reliably see 50m to 75m around the hole, depending on the surrounding geology and whether any other conductive material is in range.EM anomalies located near the detection limit of the DHEM system may record weak conductivity and represent a vector to stronger, more distant mineralisation.3 ASX / MEDIA RELEASEThe detection of an anomalous response in a DHEM survey does not preclude the presence of further conductive mineralisation beyond the location of that anomalous response.Continued Exploration:Further diamond drilling is planned to test the EM conductors at West End and Investigators. The depths being explored and the prevailing hard granitic terrain render reverse circulation (RC) drilling unsuitable for drilling of the EM targets.Surface-based EM surveys cannot reliably see to the depths of the new EM conductors, requiring the continued concurrent use of diamond drilling and DHEM surveys to scope out the extent of the deeper mineralisation.Prior to the commencement of the diamond drilling programme, a seismic survey will be completed over parts of West End and Investigators. The seismic survey is designed to map geological features up to 2km below surface, and will better delineate the mineralised corridor at West End and Investigators.The results of the seismic survey will assist in designing drill holes to test the multiple EM conductors identified in this area.The scheduled start of the seismic survey was delayed because of the unavailability of the field crew due to interstate travel restrictions arising from COVID-19 issues in NSW. The seismic survey is now expected to commence within the next few weeks.Figure 2 – map (against magnetic RTP 1VD and MMR data) showing the area for the seismic survey (yellow lines) as well as areas of known nickel-copper sulphides. The actual survey lines will be longer and extend to the north to provide optimum reflection angles on the intrusive unit. 4 ASX / MEDIA RELEASEHole IDFromToIntervalNi (%)Cu (%)PGEs (g/t)Au (ppm)Co (ppm)MAD199333.5344.5711.071.580.711.230.09593incl.340.67344.573.93.98 1.8 3.10.234 1,445 incl.342.12343.41.286.542.96 3.880.26 2,298MAD201434.62 437.022.41.6 0.55 0.52- 610 incl.436.76 437.020.266.18 1.20.79-2,140 COVID-19:Table 1 – laboratory assays for MAD199 and MAD201.St George continues to manage its operations in compliance with COVID-19 regulations issued by State and Commonwealth authorities. We will continue to proactively manage drilling and other field programmes to protect the health and safety of our team and service providers.Border restrictions in Western Australia and elsewhere have impacted on the movement of personnel for drill rig crews which is constraining the availability of drill rigs. St George is in close contact with its drilling contractors to best manage access and continuity to drilling services.About the Mt Alexander Project:The Mt Alexander Project is located 120km south-southwest of the Agnew-Wiluna Belt, which hosts numerous world-class nickel deposits. The Project comprises six granted exploration licences – E29/638, E29/548, E29/962, E29/954, E29/972 and E29/1041 – which are a contiguous package. A seventh granted exploration licence – E29/1093 – is located to the south-east of the core tenement package.The Cathedrals, Stricklands, Investigators and Radar nickel-copper-cobalt-PGE discoveries are located on E29/638, which is held in joint venture by St George (75%) and Western Areas Limited (25%). St George is the Manager of the Project, with Western Areas retaining a 25% non-contributing interest in the Project (in regard to E29/638 only) until there is a decision to mine. All other Project tenements are owned 100% by St George.

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