ST GEORGE MINING LIMITED 10 February 2016
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New gold targets established at East Laverton Project with additional targets being planned
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Strong gold anomalism identified in all three main greenstone belts at East Laverton
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Potential for multi‐million ounce gold deposits in under‐explored region containing recent world‐class gold discoveries at Tropicana (+8MozAu) and Gruyere (+5MozAu)
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Major gold‐focused drill programme at East Laverton will test multiple targets
- Drilling of priority gold targets is scheduled to commence in Q1 2016
St George Mining Limited (ASX: SGQ) ('St George Mining' or 'the Company') is pleased to announce that a major gold‐focused drill programme is planned for Q1 2016 at its 100% owned East Laverton Project.
Historical drilling, as well as recent nickel‐focused drilling by St George, has identified widespread gold anomalism on all three main greenstone belts at the East Laverton Project. This gold anomalism has the potential to be associated with larger gold systems, and justifies an escalation of gold exploration at East Laverton to complement our exciting nickel sulphide projects.
A number of important gold targets have been identified at East Laverton for priority exploration. In addition to the previously announced Ascalon gold target, we are pleased to confirm that the Bristol target and the DDD010 target will be included in the upcoming gold‐focused drill programme. Further detail on these targets is provided below. Additional gold targets are under review and will be announced shortly.
The gold drill programme will be a RC (reverse circulation) programme with over 2,500m of planned drilling. In addition, we will also shortly announce a nickel sulphide drill programme for East Laverton. This programme will utilise diamond drilling to test priority nickel sulphide targets, including the +200,000 Siemens conductor at the Windsor nickel sulphide prospect.
"We are very excited to be launching a major gold drill campaign in an area that is under‐explored for gold and which is near recent major discoveries like Tropicana and Gruyere.
"Previous drilling at our project has identified widespread gold anomalism that warrants further exploration. Our drill targets are located in favourable structural settings that are highly prospective for gold mineralisation.
"This will be a highly anticipated drill programme that has the potential to establish East Laverton as a significant gold project."
The East Laverton Project is situated within the Yilgarn Craton of Western Australia, 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 and shows that two of the most recent large greenfields gold discoveries in Australia ‐ the +8MozAu Tropicana deposit and the +5MozAu Gruyere deposit - are located near the eastern margin of the North Eastern Goldfields, where the East Laverton Project is also located.
The greenstone belts at East Laverton are adjacent to the Yamarna belt where Gold Road Resources Limited (ASX: GOR) discovered the Gruyere gold deposit in 2013.
More recently, Montezuma Mining Company Ltd (ASX: MZM) announced a new greenfields discovery on the Yamarna belt ‐ see ASX Release by MZM dated 3 December 2015 'RC Drilling Confirms High Grade Basement Gold Target'.
These gold discoveries highlight the potential of the eastern margin of the North Eastern Goldfields for further major gold discoveries.
Figure 1 - the main gold‐bearing greenstone belts of the Yilgarn Craton, showing the location of Tropicana and Gruyere ‐ two of the most recent and significant gold discoveries in Australia.
GOLD PROSPECTIVITY AT EAST LAVERTONFigure 2 is a map of the tenements at East Laverton against gravity data with the three main greenstone belts shown.
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.
Figure 2 - the East Laverton tenements against FVD Bouguer gravity data. The first three gold targets for the upcoming gold drill programme - Ascalon, Bristol and DDD010 - are highlighted.
Historical drilling at the Bristol target in the 1990's by a previous explorer intersected widespread anomalous gold (>0.5g/t Au) over a 1km strike length (see Figure 3), with gold grades up to 2.5g/t. This shallow drilling identified gold anomalism in the lower regolith profile, and there has been no drilling to test for gold mineralisation in fresh rock.
Importantly, gold anomalism in six of the seven drill holes occurs at the end of hole (average hole depth is 40m) and no infill or deeper drilling has been completed to test for continuation of regolith gold anomalism or for gold mineralisation in basement rocks.
The gold anomalism at Bristol is situated on the contact between the greenstones and granites, as defined by distinct magnetic and gravity gradients. This is a favourable setting for gold mineralisation. The northern extension of the gold zone is proximal to the interpreted Churchill Lineament, a cross structure that may act as a control on gold mineralisation.
Drill holes are planned to test the bedrock and regolith geology along this extensive gold anomalous zone.
Figure 3 - the Bristol gold target (against RTP magnetics) with proposed drill holes shown. The gold anomalism occurs on a distinct magnetic (and gravity) gradient, a setting that is often associated with gold mineralisation.
The DDD010 target is at Desert Dragon Central; see Figure 4. Drill hole DDD010, completed by St George in 2014, intersected 2m @ 1.42g/t Au from 149m within a larger halo of gold values in the range 0.3‐0.5g/t Au.
This gold intersection is within a highly sulphidic sedimentary unit (26% sulphur), which appears to be associated with a fixed loop electromagnetic (FLEM) plate. This EM plate occurs on a northwest gravity gradient and could represent a significant syn‐gold structure, with the gold intersection in DDD010 representing the edge of a larger gold system.
St George Mining Limited issued this content on 10 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 09 February 2016 23:04:08 UTC
Original Document: http://stgm.com.au/uploads/documents/2016_ASX/10_Feb_2016_Gold_Targets_at_East_Laverton.pdf
