MOUNT ALEXANDER NORTH AND HAWAII PROJECTS
On 18 September 2015, St George announced that it had entered into a binding agreement to acquire 100% of the Mount Alexander North and Hawaii Projects from BHP Billiton. For details of the acquisition terms, refer to our ASX Release dated 18 September 2015 ‘St George Acquires Nickel Sulphide Projects’.
The Projects are located along the Ida Fault, a significant Craton‐scale structure that marks the boundary between the Eastern Goldfields Superterrane to the east and the Youanmi Terrane to the west.
The Mt Goode Rift that hosts the Cosmos nickel complex (“Cosmos”) to the north is interpreted to be a splay off the Ida Fault (see Figure 5). The geology at Hawaii and Mt Alexander North could be contiguous with the stratigraphy that hosts Cosmos.
Cosmos, with a resource of over 500,000 tonnes of contained nickel, includes one of the highest grade nickel mines ever discovered.
St George has augmented the acquisition from BHP Billiton with additional tenement applications over contiguous geological and strategically important areas.
The Mount Alexander North Project is immediately north of the Mount Alexander Project comprised in E29/638 and which is currently held in joint venture by Nickel West (75%) and Western Areas (25%).
High grade nickel‐copper sulphides were discovered at the Cathedrals prospect at the Mount Alexander Project in 2008 with intersections including 4m @ 4.9%Ni, 1.7%Cu and 3.9g/t total PGEs from 91.4m and 3m @ 3.8%Ni, 1.6%Cu and 2.7g/t total PGEs from 56.3m (see ASX Release dated 2 April 2008 by Western Areas Ltd).
The Cathedrals Fault that hosts the high grade Ni‐Cu‐PGE discovery on E29/638 is interpreted to extend into the tenements acquired by St George, with potential for a continuation of the high grade mineralisation onto St George’s ground.
A deep RC drilling programme is planned for the Hawaii Project in Q4 2015, following completion of a moving loop electromagnetic survey this month.
This will be the first ever drilling of the bedrock at Hawaii, and has the potential to provide a major exploration breakthrough.
Three magnetic anomalies have been identified at the Mount Alexander North Project for priority exploration, and these targets are planned for drill testing in early 2016.
SGQ Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
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