Respectfully disagree. St George has found enough nickel at very shallow depths to make mining the nickel economically profitable for them by selling the off-take to others to process as all the required infrastructure is there. John Prineas has even gone on record confirming this. St George has elected to hold off on this though until they have defined a large JORC either at one of the specific Cathedrals Belt prospects or across the whole belt.
St George can define a JORC with what they have found so far but have elected not to do so as they are hunting the source, and extending the North West down dip and West to East strike to maximise any defined JORC. Sure you can upgrade JORCs but more often than not companies shoot themselves in the foot by rushing out with a small JORC which sets view that is hard to shift unless you have a massive hit. Also opens up the company to predators. Management know this.
Re WSA being the only logical acquirer, I don't agree with this view as there are many other more powerful players circling and if they like what St George has money talks. Sure WSA's 25% stake in this MA tenement makes it complicated but St George owns 100% of many other very attractive tenements that they haven't even been drilled / properly drilled yet including Fish Hook, Hawaii, East Laverton, Windsor, North of MA, etc, etc. If WSA relinquished their stake in the MA tenement for equity in St George then that would indicate they are serious but until then I would back other big players making a strategic investment and then a takeover attempt.
IMO St George is so undervalued atm based on the quality tenements it has and the very little exploration it has conducted - it's joke. I have said this before in a previous post and that is one great opportunity that will bring in funds to up our nickel exploration activity at MA and the other nickel tenements and not dilute shareholders is to do a "farm in" on the East Laverton gold tenements with the likes of Newcrest, Independence Group or some other big gold player. They then pay St George for a % of JV equity based on them committing funds to do all the exploration. St George will no longer have 100% equity on East Laverton but it will progress and perhaps hit something significant. 30 to 50% of something big is better than 100% of nothing and St George remaining a cheap target. Encounter Resources has used this approach and done 5 JVs with Newcrest recently, exploration is now underway and their share price has increased 40% since with the significant potential to increase based on the exploration activity.
As I have said many times before, there is lots and lots of upside for St George and not just based on their excellent Cathedrals Belt work.
Read all the announcements and form your own opinion as this is just my take.
