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ST GEORGE MINING LIMITED Regulatory Filings 2019

Oct 3, 2019

65782_rns_2019-10-03_c433272e-e8ae-4707-8fe5-71d676305de9.pdf

Regulatory Filings

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ASX / MEDIA RELEASE

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4 October 2019

DEEP DRILLING CONFIRMS CONTINUITY OF MINERALISED ULTRAMAFICS DOWN-PLUNGE ON CATHEDRALS BELT

- Maiden Deep Drilling Along the Cathedrals Belt Confirms Potential for More Nickel Copper Sulphides at Depth:

  • Drill hole MAD160 was completed as a deep stratigraphic hole at the Investigators Prospect and intersected a 20m thick mafic-ultramafic unit from 248m downhole including disseminated and blebby sulphides in a 9m interval from 259m downhole

  • The mineralised interval consists of between 1-5% sulphides comprising pentlandite (pn), chalcopyrite (cp) and pyrrhotite (po) – laboratory assays are pending and will confirm the metal content of the mineralised interval

  • MAD160 confirms a thickening of the mineralised ultramafic in the north-northwest downdip direction, and supports the potential for additional nickel-copper sulphide deposits at depth

  • MAD160 is one of four deep holes completed at the Cathedrals Belt in the current drill programme, with all four drill holes having intersected prospective ultramafic units downplunge of known nickel-copper sulphide mineralisation

  • Down-hole electromagnetic (DHEM) surveys are planned for all deep holes to search for mineralisation around the hole, including below the hole

Growth-focused Western Australian nickel company St George Mining Limited (ASX: SGQ ) (“ St George ” or “ the Company ”) is pleased to announce significant drill results at its flagship Mt Alexander Project, located in the north-eastern Goldfields.

MAD160 is the latest deep drill hole completed at the Cathedrals Belt and intersected a 20m thick mineralised mafic-ultramafic at 248m downhole. The mineralised interval is 100m down-plunge of the closest known high-grade mineralisation – representing a significant extension to the strike of mineralisation down-plunge.

John Prineas, St George Mining’s Executive Chairman, said:

“High-grade nickel-copper sulphides at shallow depths have already been identified by drilling at the Investigators, Stricklands, Cathedrals and Radar Prospects. The east-west strike of this mineralisation extends for 5.5km on the Cathedrals Belt with another 10.5km of the Cathedrals Belt remaining underexplored and prospective for further deposits of mineralisation.

“The significant east-west strike of high-grade mineralisation along the Cathedrals Belt is indicative of a large mineral system which is also likely to have a significant depth extension.

“It is pleasing to see the results of MAD160 fitting perfectly to this geological model and confirming the continuation of the mineralised ultramafic at depth.

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ASX / MEDIA RELEASE

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“With limited drilling at depth, the latest drill results are very encouraging for the potential to discover more mineralisation in the north-northwest down-dip direction of the mineralised ultramafic units.”

The mineral system at the Cathedrals Belt is interpreted to be an intrusive system with the maficultramafic intrusions that host nickel-copper sulphides having passed upwards from the Earth’s mantle through major east-west orientated faults located in the northern section of the Cathedrals Belt.

Four deep stratigraphic drill holes have been completed in the current drill programme – two at the Investigators Prospect and one each at the Stricklands and Cathedrals Prospects. All four were designed to test for the continuation of the mineralised ultramafic towards the north and at depth – being downplunge of the high-grade mineralisation already established at these Prospects.

All four drill holes intersected the intrusive mafic-ultramafic in positions consistent with the interpreted down-dip extension of those units.

These results are very encouraging and additional deep drill holes will be planned to further test for mineralisation at depth. DHEM surveys will be completed in all four drill holes shortly to investigate for potential mineralisation around the holes and to assist in designing follow-up drill holes.

Figure 1 is an orthographic view of the ultramafic at Investigators, which is interpreted to dip towards the north-northwest at 30 to 40 degrees, and highlights the mineralisation intersected by drilling to date including the down-plunge mineralisation intersected by MAD160.

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Figure 1 – 3D orthographic view (looking south-east) of the Investigators ultramafic showing drill holes and known massive nickel-copper sulphide mineralisation. The surface image is the SAMSON EM data showing the large EM anomaly at Investigators. The latest drill results, including MAD160, confirm that mineralisation is open down-plunge.

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ASX / MEDIA RELEASE

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MAD160 at Investigators:

MAD160 was completed to a downhole depth of 300m at Investigators. The hole was designed to test for a continuation at depth and down plunge of the mineralised ultramafic intersected by MAD157 and MAD158.

Both of these holes encountered significant thicknesses of nickel-copper mineralisation, including massive sulphide in MAD157 with assays pending; see our ASX Release dated 23 September 2019 ’Thick NickelCopper Sulphide Intercepts Extend Continuation of Investigators Mineralisation’ .

MAD160 successfully intersected the targeted mafic-ultramafic unit with a thick 20m intercept from 248m downhole including a 9m interval with sulphide mineralisation as follows:

MAD160 Style of Mineralisation
Interval
248.14m to
259.2m
Mafic(upper portion of intrusive) – no sulphides observed
259.2m to Ultramafic with disseminated and blebby sulphides increasing with depth(1-5%
268m sulphides comprising py, cp and po)

MAD159 at Investigators:

MAD159 was completed at Investigators East to a downhole depth of 300m.

The hole was drilled to the south, and designed to test for a continuation at depth of the mineralised ultramafic intersected by MAD112 (3.55m @ 4.67% Ni, 2.27% Cu, 0.2% Co and 2.94g/t total PGEs).

MAD159 intersected a thin, fault-bound ultramafic from 154.9m to 155.5m downhole, suggesting a structural ‘pinch out’ of the main intrusive unit which is known to be thicker along strike. No sulphides were observed.

MAD154 at Stricklands:

MAD154 was completed at Stricklands to downhole depth of 450m. The hole was drilled towards the south-east and underneath the known shallow mineralisation of MAD71 at Stricklands ( 17.45m @ 3.01%Ni, 1.31%Cu, 0.13%Co and 1.68g/t total PGEs from 37.45m ).

MAD154 intersected several thick mafic and ultramafic units with sulphide mineralisation as follows:

MAD154 Style of Mineralisation
Interval
28.4m to Mafic with rare sulphides and extensive quartz/chlorite/epidote veining(5-10%
41.3m sulphides comprising py andpo)
41.9m to Foliated Ultramafic with quartz/chlorite/epidote vein hosted disseminated sulphides
58m (10% sulphides comprising py, cp andpo)
81.56m to Mafic with quartz/chlorite/epidote vein hosted disseminated sulphides(5-10%
101.5m _sulphides comprising py, cp, po) _
135.55m to
141m

Ultramafic with disseminated sulphides(10% sulphides comprising py and po)

MAD153 at Cathedrals:

MAD153 was completed at the Cathedrals Prospect to 450m downhole and drilled towards the southsoutheast. The hole was designed to test for structural repititions in the area underneath the shallow highgrade nickel-copper sulphide mineralisation at the Cathedrals Prospect.

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ASX / MEDIA RELEASE

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MAD153 intersected three ultramafic sequences – between 128m to 130.3m, 246.08m to 247.8m and 319.3m to 320.8m, which confirms the continuation of the prospective units. Rare sulphides were observed within the ultramafic.

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Figure 2 – plan view map of the Cathedrals Belt (set against SAM data) highlighting the four deep drill holes recently completed.

The confirmation of intrusive mafic-ultramafic units at depth is very positive for the potential of further nickel-copper sulphides down-plunge from known high-grade mineralsation. Additional deep drilling is planned with another deep drill hole at Investigators currently underway.

DRILL PROGRAMME CONTINUES Table 1 contains details of the completed drill holes for the current drill programme at Mt Alexander.

Diamond drilling is continuing with MAD161 currently in progress at Investigators. This is another deep stratigraphic hole planned to a depth of 350m and designed to test for further mineralisation in the downplunge area.

RC (reverse circulation) drilling has paused while we await arrival of a more powerful RC drill rig to complete a number of deep RC holes.

Radar Prospect:

Earthworks have been completed for the drill pads required for the follow-up drilling of the MAD152 discovery hole at Radar – see our ASX Release dated 2 September 2019 ‘ New Discovery of Nickel-Copper Sulphides’ .

Drilling at Radar is scheduled to commence shortly.

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ASX / MEDIA RELEASE

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Bullets Prospect:

Earthworks have also been completed at Bullets for the inaugral drilling of EM conductors at this target area. Drilling at Bullets will be prioritised after drilling is completed at Radar.

Fish Hook Prospect:

The Programme of Works required to commence drilling at Fish Hook has been approved by the Department of Mines, Industry Regulation and Safety.

Assays for the recently completed soil survey are expected within the next two weeks, following which an EM survey and/or drilling will be progressed at Fish Hook.

West End Prospect:

The crew for the moving loop EM (MLEM) survey planned for West End is due to return to site shortly. They will complete the MLEM survey towards the Ida Fault in the western section of the Cathedrals Belt.

Drill targets at West End will be finalised once the results of the MLEM survey are reviewed.

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Figure 3 – map of the Mt Alexander tenements (against RTP 1VD magnetic data) with key prospects on the Cathedrals Belt highlighted. New targets generated at Bullets and Fish Hook have yet to be drilled and have the potential to significantly extend the strike of mineralisation along the 16km Cathedrals Belt.

Based on the intersection angle of the drilling with the modelled ultramafic unit, downhole widths are interpreted to be close to true widths.

Nickel and copper values shown above for recently completed drill holes are based on portable XRF analysis. They are preliminary in nature and a conclusive determination of the nickel, copper, cobalt and PGE values of the sulphide mineralisation will be confirmed when laboratory assays are available.

Average XRF readings in the massive sulphide interval are based on at least four readings per metre (unless otherwise stated) and are not length and density weighted.

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ASX / MEDIA RELEASE

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Metal content for intervals of disseminated sulphides are not accurately determined by portable XRF analysis and estimates for this style of mineralisation are based on geological logging.

Hole ID Prospect East North RL Depth Azimuth Dip Target
MAD144 Investigators 231010 6806499 419 230 165 -71 EM plate 82,000
siemens
MAD145 Investigators 231650 6806569 424.6 230 196 -77 EM plate 20,000
siemens
MAD146 Investigators 231377 6806531 422.8 220 170 -75 EM plate 34,000
siemens
MAD147 Investigators 231299 6806305 422 150.8 353 -75 EM plate 30,000
siemens
MAD148 Investigators 231234 6806400 421 210.9 358 -80 EM plate 28,000
siemens
MAD149 Investigators 231219 6806454 421 240.6 28 -68 EM Plate 20,000
siemens
MAD150 Investigators 231170 6806452 421 217 201 -78 EM Plate 15,000
siemens
MAD151 Fairbridge 233270 6807080 423 330.5 155 -70 Stratigraphic hole
MAD152 Radar 234933 6807257 414 81.7 180 -70 EM Plate 30,000
siemens
MAD153 Cathedrals 233627 6807171 420 450 155 -65 Stratigraphic hole
MAD154 Stricklands 232284 6806673 442 450 135 -65 Stratigraphic hole
MAD155 Investigators 231925 6806510 420 120.8 120.8 -70 EM Plate 8,000
siemens
MAD156 Investigators 231651 6806571 426 220.1 220.1 -78 EM plate 30,000
siemens
MAD157 Investigators 231008 6806504 418.7 220.1 220.1 -78 EM plate 89,000
siemens
MAD158 Investigators 231174 6806451 420 211.2 211.2 -85 EM Plate 8,000
siemens
MAD159 Investigators 231982 6806672 431 300 300 -65 Step-out
Stratigraphic hole
MAD160 Investigators 231110 6806639 420 300 300 -65 Step-out
Stratigraphic hole
MARC123 West End 228729 6806529 407 226 180 -65 SAM Stratigraphic
hole
MARC124 Investigators 230871 6806300 418 155 180 -70 SAM Stratigraphic
hole
MARC125 Investigators 231158 6806262 421 101 200 -70 SAM Stratigraphic
hole
MARC126 Investigators 231272 6806262 422 89 180 -70 SAM Stratigraphic
hole
MARC127 West End 230701 6806679 417 203 180 -65 SAM Stratigraphic
hole
MARC128 Stricklands 232361 6806549 441 166 96 -76 EM Plate 10,000
siemens

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MARC129 West End 230552 6806287 416 143 180 -70 SAM Stratigraphic
hole
MARC130 Bullets 236227 6807439 420 120 150 -65 SAM Stratigraphic
hole
MARC131 Bullets 236184 6807516 420 154 150 -65 SAM Stratigraphic
hole

Table 1 – drill holes completed and underway in current drill programme at Mt Alexander.

About the Mt Alexander Project:

The Mt Alexander Project is located 120km south-southwest of the Agnew-Wiluna Belt, which hosts numerous world-class nickel deposits. The Project comprises five granted exploration licences – E29/638, E29/548, E29/962, E29/954 and E29/972.

The Cathedrals, Stricklands and Investigators nickel-copper-cobalt-PGE discoveries are located on E29/638, which is held in joint venture by St George Mining Limited (75%) and Western Areas Limited (25%). St George is the Manager of the Project, with Western Areas retaining a 25% non-contributing interest in the Project (in regard to E29/638 only) until there is a decision to mine.

For further information, please contact:

John Prineas Peter Klinger Executive Chairman Media and Investor Relations St George Mining Limited Cannings Purple +61 (0) 411 421 253 +61 (0) 411 251 540 [email protected] [email protected]

Competent Person Statement:

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Dave O’Neill, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr O’Neill is employed by St George Mining Limited to provide technical advice on mineral projects, and he holds performance rights issued by the Company.

Mr O’Neill has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr O’Neill consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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The following section is provided for compliance with requirements for the reporting of exploration results under the JORC Code, 2012 Edition.

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

Criteria
JORC Code explanation
Commentary
Sampling
techniques
Nature and quality of sampling (eg cut channels,
random chips, or specific specialised industry
standard measurement tools appropriate to the
minerals under investigation, such as down hole
gamma sondes, or handheld XRF instruments,
etc). These examples should not be taken as
limiting the broad meaning of sampling.
Drilling programmes are completed by Reverse Circulation (RC) and
Diamond Core drilling. Surface Electro‐Magnetic (EM) surveys are
completed by GAP geophysics.
Diamond Core Sampling:_The sections of the core that are selected
for assaying are marked up and then recorded on a sample sheet for
cutting and sampling at the certified assay laboratory. Samples of HQ
or NQ2 core are cut just to the right of the orientation line where
available using a diamond core saw, with half core sampled
lengthways for assay.
_RC Sampling:
All samples from the RC drilling are taken as 1m samples
for laboratory assay.
_EM Surveying:_All data is collected in a Moving Loop (MLEM) survey
configuration using MLEM TX transmitter with a SMARTem 24
receiver.
Appropriate QAQC samples (standards, blanks and duplicates) are
inserted into the sequences as per industry best practice. Samples are
collected using cone or riffle splitter. Geological logging of RC chips is
completed at site with representative chips being stored in drill chip
trays.
Onsite XRF analysis is conducted on the fines from RC chips using a
hand‐held Olympus Innov‐X Spectrum Analyser. These results are
used for onsite interpretation and preliminary assessment subject to
final geochemical analysis by laboratory assays.
Include reference to measures taken to ensure
sample representivity and the appropriate
calibration of any measurement tools or
systems used.
_RC Sampling:_Samples are taken on a one metre basis and collected
using uniquely numbered calico bags. The remaining material for that
metre is collected and stored in a green plastic bag marked with that
specific metre interval. The cyclone is cleaned with compressed air
after each plastic and calico sample bag is removed. If wet sample or
clays are encountered then the cyclone is opened and cleaned
manually and with the aid of a compressed air gun. A blank sample is
inserted at the beginning of each hole, and a duplicate sample is
taken every 50thsample. A certified sample standard is also added
according to geology, but at no more than 1:50 samples.
Geological logging of RC chips is completed at site with representative
chips being stored in drill chip trays. Downhole surveys of dip and
azimuth are conducted using a single shot camera every 30m, and
using a downhole Gyro when required, to detect deviations of the
hole from the planned dip and azimuth. The drill‐hole collar locations
are recorded using a hand‐held GPS, which has an accuracy of +/‐ 5m.
All drill‐hole collars will be surveyed to a greater degree of accuracy
using a certified surveyor at a later date.
_Diamond Core Sampling:_For diamond core samples, certified sample
standards were added as every 25thsample. Core recovery
calculations are made through a reconciliation of the actual core and
the driller’s records. Downhole surveys of dip and azimuth were
conducted using a single shot camera every 30m to detect deviations
of the hole from the planned dip and azimuth. The drill‐hole collar
locations are recorded using a hand‐held GPS, which has an accuracy
of +/‐ 5m. All drill‐hole collars will be surveyed to a greater degree of
accuracy using a certified surveyor at a later date.

1

Criteria
JORC Code explanation
Commentary
Aspects of the determination of mineralisation
that are Material to the Public Report.
In cases where ‘industry standard’ work has
been done this would be relatively simple (eg
‘reverse circulation drilling was used to obtain 1
m samples from which 3 kg was pulverised to
produce a 30 g charge for fire assay’). In other
cases more explanation may be required, such
as where there is coarse gold that has inherent
sampling problems. Unusual commodities or
mineralisation types (eg submarine nodules)
may warrant disclosure of detailed information.
_RC Sampling:_A 1m composite sample is taken from the bulk sample
of RC chips that may weigh in excess of 40 kg. Each sample collected
for assay typically weighs 2‐3kg, and once dried, is prepared for the
laboratory as per the Diamond samples below.
_Diamond Core Sampling:_Diamond core (both HQ and NQ2) is half‐
core sampled to geological boundaries no more than 1.5m and no less
than 10cm. Samples less than 3kg are crushed to 10mm, dried and
then pulverised to 75µm. Samples greater than 3kg are first crushed
to 10mm then finely crushed to 3mm and input into the rotary
splitters to produce a consistent output weight for pulverisation.
Pulverisation produces a 40g charge for fire assay. Elements
determined from fire assay are gold (Au), platinum (Pt) and palladium
(Pd) with a 1ppb detection limit. To determine other PGE
concentrations (Rh, Ru, Os, Ir) a 25g charge for nickel sulphide collect
fire assay is used with a 1ppb detection limit.
Other elements will be analysed using an acid digest and an ICP finish.
These elements are: Ag, Al, As, Bi, Ca, Cd, Co, Cr, Fe, K, Li, Mg, Mn,
Mo, Nb, Ni, P, Pb, S, Sb, Sn, Te, Ti, V, W, Zn. The sample is digested
with nitric, hydrochloric, hydrofluoric and perchloric acids to effect as
near to total solubility of the sample as possible. The sample is then
analysed using ICP‐AES or ICP‐MS.
LOI (Loss on Ignition) will be completed on selected samples to
determine the percentage of volatiles released during heating of
samples to 1000°C.
Drilling
techniques
Drill type (eg core, reverse circulation, open‐hole
hammer, rotary air blast, auger, Bangka, sonic,
etc) and details (eg core diametre, triple or
standard tube, depth of diamond tails, face‐
sampling bit or other type, whether core is
oriented and if so, by what method, etc).
_Diamond Core Sampling:_The collars of the diamond holes were
drilled using RC drilling down through the regolith to the point of
refusal or to a level considered geologically significant to change to
core. The hole was then continued using HQ diamond core until the
drillers determined that a change to NQ2 coring was required.
The core is oriented and marked by the drillers. The core is oriented
using ACT Mk II electric core orientation.
_RC Sampling:_The RC drilling uses a 140 mm diametre face hammer
tool. High capacity air compressors on the drill rig are used to ensure
a continuously sealed and high pressure system during drilling to
maximise the recovery of the drill cuttings, and to ensure chips
remain dry to the maximum extent possible.
Drill sample
recovery
Method of recording and assessing core and
chip sample recoveries and results assessed.
Measures taken to maximise sample recovery
and ensure representative nature of the
samples.
_Diamond Core Sampling:_Diamond core recoveries are recorded
during drilling and reconciled during the core processing and
geological logging. The core length recovered is measured for each
run and recorded which is used to calculate core recovery as a
percentage.
_RC Sampling:_RC samples are visually checked for recovery, moisture
and contamination. Geological logging is completed at site with
representative RC chips stored in chip trays.
_RC Sampling:_Samples are collected using cone or riffle splitter.
Geological logging of RC chips is completed at site with representative
chips being stored in drill chip trays.
_Diamond Core Sampling:_Measures taken to maximise core recovery
include using appropriate core diameter and shorter barrel length
through the weathered zone, which at Cathedrals and Investigators is
mostly <20m and Stricklands <40m depth. Primary locations for core
loss in fresh rock are on geological contacts and structural zones, and
drill techniques are adjusted accordingly, and if possible these zones
are predicted from the geological modelling.

2

Criteria
JORC Code explanation
Commentary
Whether a relationship exists between sample
recovery and grade and whether sample bias
may have occurred due to preferential loss/gain
of fine/coarse material.
To date, no sample recovery issues have yet been identified that
would impact on potential sample bias in the competent fresh rocks
that host the mineralised sulphide intervals.
Logging
Whether core and chip samples have been
geologically and geotechnically logged to a level
of detail to support appropriate Mineral
Resource estimation, mining studies and
metallurgical studies.
Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc)
photography.
The total length and percentage of the relevant
intersections logged.
Geological logging is carried out on all drill holes with lithology,
alteration, mineralisation, structure and veining recorded.
Logging of diamond core and RC samples records lithology,
mineralogy, mineralisation, structures (core only), weathering, colour
and other noticeable features. Core was photographed in both dry
and wet form.
All drill holes are geologically logged in full and detailed litho‐
geochemical information is collected by the field XRF unit. The data
relating to the elements analysed is used to determine further
information regarding the detailed rock composition.
Sub‐sampling
techniques and
sample
preparation
If core, whether cut or sawn and whether
quarter, half or all core taken.
If non‐core, whether riffled, tube sampled,
rotary split, etc and whether sampled wet or
dry.
For all sample types, the nature, quality and
appropriateness of the sample preparation
technique.
Quality control procedures adopted for all sub‐
sampling stages to maximise representivity of
samples.
_Diamond Core Sampling:_Diamond core was drilled with HQ and NQ2
size and sampled as complete half core to produce a bulk sample for
analysis. Intervals selected varied from 0.3 – 1m (maximum) The HQ
and NQ2 core is cut in half length ways just to the right of the
orientation line where available using a diamond core saw. All
samples are collected from the same side of the core where
practicable.
Assay preparation procedures ensure the entire sample is pulverised
to 75 microns before the sub‐sample is taken. This removes the
potential for the significant sub‐sampling bias that can be introduced
at this stage.
RC samples are collected in dry form. Samples are collected using
cone or riffle splitter when available. Geological logging of RC chips is
completed at site with representative chips being stored in drill chip
trays.
RC Sampling: Sample preparation for RC chips follows a standard
protocol.
The entire sample is pulverised to 75µm using LM5 pulverising mills.
Samples are dried, crushed and pulverized to produce a homogenous
representative sub‐sample for analysis. A grind quality target of 90%
passing 75µm is used.
Quality control procedures include submission of Certified Reference
Materials (standards), duplicates and blanks with each sample batch.
QAQC results are routinely reviewed to identify and resolve any
issues_.
_RC Sampling:
Field QC procedures maximise representivity of RC
samples and involve the use of certified reference material as assay
standards, along with blanks, duplicates and barren washes.
_Diamond Core Sampling:_Drill core is cut in half lengthways and the
total half‐core submitted as the sample. This meets industry
standards where 50% of the total sample taken from the diamond
core is submitted.

3

Criteria JORC Code explanation Commentary
Measures taken to ensure that the sampling is
representative of the in situ material collected,
including for instance results for field
duplicate/second‐half sampling.
Duplicate samples are selected during sampling. Samples comprise
two quarter core samples for Diamond Core. Duplicate RC samples
are captured using two separate sampling apertures on the splitter.
Whether sample sizes are appropriate to the
grain size of the material being sampled.
The sample sizes are considered to be appropriate to correctly
represent base metal sulphide mineralisation and associated geology
based on: the style of mineralisation (massive and disseminated
sulphides), the thickness and consistency of the intersections and the
sampling methodology.
Quality of
assay data and
laboratory
tests
The nature, quality and appropriateness of the
assaying and laboratory procedures used and
whether the technique is considered partial or
total.
For RC sampling, a 30 gram sample will be fire assayed for gold,
platinum and palladium. The detection range for gold is 1 – 2000
ppbAu, and 0.5 – 2000 ppb for platinum and palladium. This is
believed to be an appropriate detection level for the levels of these
elements within this specific mineral environment. However, should
Au, Pt or Pd levels reported exceed these levels; an alternative assay
method will be selected.
All other metals will be analysed using an acid digest and an ICP finish.
The sample is digested with nitric, hydrochloric, hydrofluoric and
perchloric acids to effect as near to total solubility of the sample as
possible. The solution containing samples of interest, including those
that need further review, will then be presented to an ICP‐OES for the
further quantification of the selected elements.
Diamond core samples are analysed for Au, Pt and Pd using a 40g lead
collection fire assay; for Rh, Ru, Os, Ir using a 25g nickel sulphide
collection fire assay; and for Ag, Al, As, Bi, Ca, Cd, Co, Cr, Fe, K, Li, Mg,
Mn, Mo, Nb, Ni, P, Pb, S, Sb, Sn, Te, Ti, V, W, Zn using a four acid digest
and ICP‐AES or MS finish. The assay method and detection limits are
appropriate for analysis of the elements required.
For geophysical tools, spectrometres, handheld
XRF instruments, etc, the parametres used in
determining the analysis including instrument
make and model, reading times, calibrations
factors applied and their derivation, etc.
MLEM: 200m x 200m loops with 50m stations were used for the
MLEM surveys. The MLEM TX transmitter uses a base frequency of
0.25 or 0.5Hz and 100amps. The SMARTem 24 is a fluxgate receiver.
XRF: A handheld XRF instrument (Olympus Innov‐X Spectrum
Analyser) is used to systematically analyse the drill core and RC
sample piles onsite. One reading is taken per metre, however for any
core samples with matrix or massive sulphide mineralisation then
multiple samples are taken at set intervals per metre. The
instruments are serviced and calibrated at least once a year. Field
calibration of the XRF instrument using standards is periodically
performed (usually daily).
The handheld XRF results are only used for preliminary assessment
and reporting of element compositions, prior to the receipt of assay
results from the certified laboratory.
Nature of quality control procedures adopted
(eg standards, blanks, duplicates, external
laboratory checks) and whether acceptable
levels of accuracy (ie lack of bias) and precision
have been established.
Laboratory QAQC involves the use of internal lab standards using
certified reference material (CRMs), blanks and pulp duplicates as
part of in‐house procedures. The Company also submits a suite of
CRMs, blanks and selects appropriate samples for duplicates.
Sample preparation checks for fineness are performed by the
laboratory to ensure the grind size of 90% passing 75µm is being
attained.
Verification of
sampling and
assaying
The verification of significant intersections by
either independent or alternative company
personnel.
Significant intersections are verified by the Company’s technical
staff.
The use of twinned holes. No twinned holes have been planned for the current drill
programme.

4

Criteria JORC Code explanation Commentary
Documentation of primary data, data entry Primary data is captured onto a laptop using acQuire software and
procedures, data verification, data storage includes geological logging, sample data and QA/QC information. This
(physical and electronic) protocols. data, together with the assay data, is entered into the St George
Mining central SQL database which is managed by external
consultants.
Discuss any adjustment to assay data. No adjustments or calibrations will be made to any primary assay data
collected for the purpose of reporting assay grades and mineralised
intervals. For the geological analysis, standards and recognised
factors may be used to calculate the oxide form assayed elements, or
to calculate volatile free mineral levels in rocks.
Location of Accuracy and quality of surveys used to locate Drill holes and EM stations have been located and pegged using a
data points drill holes (collar and down‐hole surveys), DGPS system with an expected accuracy of +/‐5m for easting,
trenches, mine workings and other locations northing and elevation.
used in Mineral Resource estimation. Downhole surveys are conducted using a single shot camera
approximately every 30m or downhole Gyro during drilling to record
and monitor deviations of the hole from the planned dip and azimuth.
Post‐drilling downhole gyroscopic surveys will be conducted, which
provide more accurate survey results.
Specification of the grid system used. The grid system used is GDA94, MGA Zone 51.
Quality and adequacy of topographic control. Elevation data has been acquired using DGPS surveying at individual
collar locations and entered into the central database. A
topographic surface has been created using this elevation data.
Data spacing Data spacing for reporting of Exploration The spacing and distribution of holes is not relevant to the drilling
and Results. programs which are at the exploration stage rather than definition
distribution drilling.
Whether the data spacing and distribution is The completed drilling at the Project is not sufficient to establish the
sufficient to establish the degree of geological degree of geological and grade continuity to support the definition of
and grade continuity appropriate for the Mineral Resource and Reserves and the classifications applied under
Mineral Resource and Ore Reserve estimation the 2012 JORC code.
procedure(s) and classifications applied.
Whether sample compositing has been applied. No compositing has been applied to the exploration results.
Orientation of Whether the orientation of sampling achieves The drill holes are drilled to intersect the modelled mineralised zones
data in relation unbiased sampling of possible structures and at a near perpendicular orientation (unless otherwise stated).
to geological the extent to which this is known, considering However, the orientation of key structures may be locally variable
structure the deposit type. and any relationship to mineralisation has yet to be identified.
If the relationship between the drilling No orientation based sampling bias has been identified in the data
orientation and the orientation of key to date.
mineralised structures is considered to have
introduced a sampling bias, this should be
assessed and reported if material.
Sample The measures taken to ensure sample security. Chain of Custody is managed by the Company until samples pass to a
security duly certified assay laboratory for subsampling and assaying. The RC
sample bags are stored on secure sites and delivered to the assay
laboratory by the Company or a competent agent. When in transit,
they are kept in locked premises. Transport logs have been set up to
track the progress of samples.
Audits or The results of any audits or reviews of sampling Sampling techniques and procedures are regularly reviewed
reviews techniques and data. internally, as is data. To date, no external audits have been
completed on the drilling programme.

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Section 2 Reporting of Exploration Results (Criteria listed in section 1 will also apply to this section where relevant)

Criteria
JORC Code explanation
Commentary
Mineral
Tenement and
Land Status
Type, name/reference number, location and
ownership including agreements or material
issues with third parties including joint ventures,
partnerships, overriding royalties, native title
interests, historical sites, wilderness or national
park and environmental settings.
The security of the tenure held at the time of
reporting along with any known impediments to
obtaining a licence to operate in the area.
The Mt Alexander Project is comprised of five granted Exploration
Licences (E29/638, E29/548, E29/954, E29/962 and E29/972).
Tenement E29/638 is held in Joint Venture between St George (75%
interest) and Western Areas (25% interest). E29/638 and E29/548 are
also subject to a royalty in favour of a third party that is outlined in
the ASX Release dated 17 December 2015 (as regards E29/638) and
the ASX release dated 18 September 2015 (as regards E29/548).
No environmentally sensitive sites have been identified on the
tenements. A registered Heritage site known as Willsmore 1 (DAA
identification 3087) straddles tenements E29/548 and E29/638. All
five tenements are in good standing with no known impediments.
Exploration
Done by Other
Parties
Acknowledgment and appraisal of exploration
by other parties.
Exploration on tenements E29/638 and E29/962 has been largely for
komatiite‐hosted nickel sulphides in the Mt Alexander Greenstone
Belt. Exploration in the northern section of E29/638 (Cathedrals Belt)
and
also
limited
exploration
on
E29/548
has
been
for
mafic/ultramafic intrusion related Ni‐Cu‐PGE sulphides. No historic
exploration has been identified on E29/954 or E29/972.
High grade nickel‐copper‐PGE sulphides were discovered at the Mt
Alexander Project in 2008. Drilling was completed to test co‐incident
electromagnetic (EM) and magnetic anomalies associated with
nickel‐PGE enriched gossans in the northern section of current
tenement E29/638. The drilling identified high grade nickel‐copper
mineralisation in granite‐hosted ultramafic units and the discovery
was named the Cathedrals Prospect.
Geology
Deposit type, geological setting and style of
mineralisation
The Mt Alexander Project is at the northern end of a western
bifurcation of the Mt Ida Greenstones. The greenstones are bound to
the west by the Ida Fault, a significant Craton‐scale structure that
marks the boundary between the Kalgoorlie Terrane (and Eastern
Goldfields Superterrane) to the east and the Youanmi Terrane to the
west.
The Mt Alexander Project is prospective for further high‐grade
komatiite‐hosted nickel‐copper‐PGE mineralisation (both greenstone
and granite hosted) and also precious metal mineralisation (i.e.
orogenic gold) that is typified elsewhere in the Yilgarn Craton.
Drill hole
information
A summary of all information material to the
understanding of the exploration results
including
tabulation
of
the
following
information for all Material drill holes:
• Easting and northing of the drill hole collar
•Elevation or RL (Reduced Level – elevation
above sea level in metres) of the drill hole collar
• Dip and azimuth of the hole
• Down hole length and interception depth
• Hole length
Drill hole collar locations are shown in the maps and tables included
in the body of the relevant ASX releases.
Data
aggregation
methods
In reporting Exploration Results, weighting
averaging
techniques,
maximum
and/or
minimum grade truncations (e.g. cutting of high
grades) and cut‐off grades are usually Material
and should be stated.
Reported assay intersections are length and density weighted.
Significant intersections are determined using both qualitative (i.e.
geological logging) and quantitative (i.e. lower cut‐off) methods.
For massive sulphide intersections, the nominal lower cut‐off is 2%
for either nickel or copper. For disseminated, blebby and matrix
sulphide intersections the nominal lower cut‐off for nickel is 0.3%.

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Criteria JORC Code explanation Commentary
Where aggregated intercepts incorporate short Any high‐grade sulphide intervals internal to broader zones of
lengths of high grade results and longer lengths sulphide mineralisation are reported as included intervals.
of low grade results, the procedure used for such
aggregation should be stated and some typical
examples of such aggregations should be shown
in detail.
Any disseminated, matrix, brecciated or stringer sulphides with
(usually) >1% nickel or copper on contact with massive sulphide
mineralisation are grouped with the massive sulphides for
calculating significant intersections and the massive sulphide
mineralisation is reported as an including intersection.
The assumptions used for any reporting of No metal equivalent values are used for reporting exploration
metal equivalent values should be clearly results.
stated.
Relationship These relationships are particularly important in Assay intersections are reported as down hole lengths. Drill holes are
between the reporting of exploration results. If the planned as perpendicular as possible to intersect the target EM plates
mineralisation geometry of the mineralisation with respect to and geological targets so downhole lengths are usually interpreted to
widths and the drill hole angle is known, its nature should be near true width.
intercept be reported. If it is not known and only the down
lengths hole lengths are reported, there should be a
clear statement to this effect.
iagrams Appropriate maps and sections (with scales) and A prospect location map, cross section and long section are shown
tabulations of intercepts should be included for in the body of relevant ASX Releases.
any significant discovery being reported. These
should include, but not be limited to a plane
view of drill hole collar locations and
appropriate sectional views.
Balanced Where
comprehensive
reporting
of
all
Reports on recent exploration can be found in ASX Releases that are
Reporting Exploration
Results
is
not
practical,
available on our website atwww.stgm.com.au:
representative reporting of both low and high
grades and/or widths should be practiced to
avoid misleading reporting of Exploration
Results.
The exploration results reported are representative of the
mineralisation style with grades and/or widths reported in a
consistent manner.
Other Other exploration data, if meaningful and All material or meaningful data collected has been reported.
substantive material, should be reported including (but not
exploration limited to): geological observation; geophysical
data survey results; geochemical survey results; bulk
samples – size and method of treatment;
metallurgical
test
results;
bulk
density,
groundwater,
geotechnical
and
rock
characteristics;
potential
deleterious
or
contaminating substances.
Further Work The nature and scale of planned further work A discussion of further exploration work underway is contained in the
(e.g. tests for lateral extensions or depth body of recent ASX Releases.
extensions or large – scale step – out
drilling).Diagrams clearly highlighting the areas
of possible extensions, including the main
Further exploration will be planned based on ongoing drill results,
geophysical surveys and geological assessment of prospectivity.
geological interpretations and future drilling
areas, provided this information is not
commercially sensitive.

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