Been out bush for 2 weeks doing actual work, so excuse the lateness.
I have been keeping an eye on SGQ for a while because of Cathedrals area / project. The grades are spectacular, for nickel. The problem is it seems to be a dyke (??) which is cutting across the stratigraphy, so I am not sure I fully understand the geology. There's granites, porphyries, pegmatites, all sorts of things cutting through. I can't get my head around it, to be honest, but it doesn't look like the typical komatiite channel deposit. This means that the spotty grades could be a reflection of various phenomena; are the good grades not lining up to create a resurce-worthy set of hits because the granites / pegmatites are stoping them out? Is the geology of the area just not well understood? Is there no basal contact to speak of, meaning there's no target to aim a drill rig at to find a sheet of massive sulphide?
It's quite odd that with such grades, you don't have any real headway on anything even remotely resource-ey. This could use some clarification from the company as to what they think the exploration model is, what they have, and what the upside looks like.
As for Windsor, I haven't seen much from here, but I think that the play is fine. Using EM to target these strung-out vertical shoots of massive sulphide is fine, if spotty. The problem with targeting pencil shoots is drilling the thin cylindrical rod of sulphides or coupling it up well with EM so it produces a conductor you can be sure isn't spurious. Newexco are the guys for it, if anyone is, so it will be interesting to see how it goes.
I guess, everything I see here is the same as it was a year ago - keep an eye on it, and see what comes about. It's not hat throwing time yet.
SGQ Price at posting:
10.5¢ Sentiment: None Disclosure: Not Held
