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St George Mining to drill high-grade nickel-copper sulphide targets after raising $4 million in share placement

Last updated: 01:30 27 Jun 2019 EDT, First published: 11:30 26 Jun 2019 EDT

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Lead manager to the placement was Argonaut

St George Mining Ltd (ASX:SGQ) has completed a placement of more than 37 million shares at 11 cents each, raising a total of $4 million.

Raised capital from the placement will fund upcoming exploration at St George’s Mt Alexander Project in Western Australia and other projects.

READ: St George Mining has commitments to raise $4 million for Mt Alexander exploration

St George executive chairman John Prineas said: “We are very pleased with the strong investor backing which recognises the substantial exploration upside at the high-grade Mt Alexander Project at a time of heightened investor interest in the nickel sulphide market.

“We thank new and existing shareholders for their continued support.”

READ: St George Mining intersects thick high-grade nickel-copper-cobalt-PGE mineralisation at Mt Alexander

The upcoming phase-II drilling program will build on the recent phase-one program which was designed to generate multiple new electromagnetic (EM) targets to expand the potential scale of mineralisation.

Phase-one drilling returned thick and high-grade nickel-copper-cobalt-platinum group elements (PGE) sulphide mineralisation at Mt Alexander.

The best intersections were drilled at the Investigators prospect with results establishing further continuity of high-grade mineralisation.

This mineralisation continues both in the northerly down-dip direction and along the east-west trend of the Cathedrals belt.

READ: St George Mining identifies high priority nickel-copper targets at Mt Alexander ahead of drilling

Prineas said that this was an exciting time for St George shareholders.

He added: “We are preparing a major drill program for Mt Alexander that will test nickel-copper sulphide targets across the highly-mineralised Cathedrals Belt, including a large number of EM conductors."

The combined diamond and reverse circulation program will test the new downhole EM conductors identified from the phase-one drill holes as well as the northern anomalies at Investigators.