ST GEORGE MINING LIMITED 26 November 2015
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Expert review of exploration data endorses potential for significant gold mineralisation at East Laverton
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Potential for multi‐million ounce gold deposits in under‐explored region which hosts recent world‐class gold discoveries at Tropicana (+8MozAu) and Gruyere (+5MozAu)
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New Ascalon gold target identified on high priority Minigwal greenstone belt
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Strong portfolio of key gold targets with multiple other gold targets under review
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Major gold‐focused drilling programme scheduled for East Laverton early next year
- Escalation of gold exploration alongside advanced nickel sulphide prospects provides a diversified commodity exposure
St George Mining Limited (ASX: SGQ) ('St George Mining' or 'the Company') is pleased to announce that an expert technical review has identified new targets with potential for significant gold mineralisation at its 100% owned East Laverton Project.
The Yilgarn Craton of Western Australia is a world class gold province with an endowment of over 300 million ounces of gold. Figure 1 illustrates the major gold‐bearing greenstone belts of the Yilgarn. The most recent large greenfields gold discoveries in Australia ‐ the +8MozAu Tropicana deposit and the +5MozAu Gruyere deposit - are located in the eastern margin of the North Eastern Goldfields.
St George's East Laverton Project is also situated within this highly prospective but under‐explored area.
The new gold targeting at East Laverton was completed by our technical team, assisted by Dr Jon Hronsky, Chairman of the Centre of Exploration Targeting in Western Australia, who has been associated with a number of major gold discoveries in Western Australia.
'The gold targets have been generated by utilising a substantial amount of technical data from our ongoing field work. These are very robust targets, supported by multiple layers of technical data.
'Our technical team believe the new Ascalon target, in particular, is as good as any other major gold project in the Yilgarn at this early stage of exploration. This is very encouraging and indicates the enormous gold potential at our Project.
'We are very pleased to be able to escalate exploration of these strong gold targets, which will complement our advanced portfolio of nickel sulphide prospects.'
Figure 1 - the main gold‐bearing greenstone belts of the Yilgarn Craton. The East Laverton Project is within the North Eastern Goldfields, along with Tropicana and Gruyere.
The area to the east of the Laverton gold camp (+40MozAu) has received little modern exploration due to previous remoteness and the much greater extent of post‐mineralisation cover in this area.
The growth of infrastructure in this region, together with the introduction of new exploration methods and technology, has facilitated a new wave of successful exploration in this under‐explored area of the North Eastern Goldfields. This is demonstrated by the two most recent and important gold discoveries in Australia being made within this region.
The Tropicana discovery (+8MozAu) was made in 2005 and is now Australia's fourth largest gold mine, with additional discoveries being made near mine. The Gruyere gold deposit (+5MozAu) was discovered in 2013 and is now in the feasibility stage. These successes highlight the unrealised potential of this area and validate our strong focus on the under‐explored greenstones within St George's East Laverton Project.
A significant advance in the gold targeting at East Laverton has resulted with the completion of a detailed camp‐scale ground gravity survey in August this year. The gravity data was collected on a 400m x 200m grid that covered most of the tenement holding; see Figure 2.
Gravity data is a critical component in targeting orogenic gold deposits as it highlights fundamental structures, which are first‐order controls on the concentration of gold mineralisation. There is a strong association between major gold deposits and gravity gradients, the multi‐scale edges of positive gravity features.
The new Ascalon target was identified by our technical team as the highest ranking conceptual gold target at East Laverton. This target is located on the Minigwal belt (see Figure 2) and has the potential to result in a major gold discovery. Ascalon is discussed in more detail below.
The Stella Range belt, in the west of the tenement package, remains highly prospective for massive nickel sulphides as well as gold. It continues to be the focus of our nickel sulphide drilling programme that is currently underway, with further announcements on exploration results being imminent.
In addition to the Ascalon target, several other high priority gold targets have been established at East Laverton. Further details regarding these prospective targets will be announced over the coming weeks. A gold‐focused drilling campaign, that will include the first ever drilling of the Ascalon target, is planned for early in 2016.
Figure 2 - the East Laverton tenements with 1VD Bouguer gravity data. The strongest gravity features (red colour) are present in the Minigwal belt where Ascalon is located.
ASCALON - A NEW HIGH PRIORITY GOLD TARGETThe Ascalon gold target is located on the Minigwal greenstone belt and has a strike of approximately 2km. This target area is totally concealed by the post‐mineral cover.
The gravity survey recently completed over the Minigwal belt has identified a curvilinear domain of high‐ gravity response that is interpreted as a major regional rift zone. A prominent deflection in the regional trend is highlighted by the gravity data; see Figure 3.
This deflection is likely to be an important control on mineralisation at the camp‐scale. The Ascalon target is focused on this change in the strike of the rift trend and is a target for gold mineralisation at the prospect‐scale.
Figure 3 - the Ascalon target with its highly prospective features highlighted.
The Ascalon target area has never been drill tested and has been concealed from previous surface prospecting and exploration by a veneer of Permian and Quaternary cover sediments. Two historical drill holes located immediately outside the main target area were geochemically anomalous in gold (up to 174ppb Au). Figure 3 shows the previous drilling in the Minigwal belt with gold results.
Historical gold exploration drilling on the belt focused on an area about 1.5km NW of the Ascalon target, and along the same regional NW striking rift trend. This historical drilling was completed mostly by WMC Resources in the early 1990s and defined a linear zone of gold anomalism in bedrock.
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