St George Mining : Exploration at Mt Alexander and Hawaii Projects

Microsoft Word - 22 January 2016 St George to Accelerate Exploration at Mt Alexander and Hawaii Projects v.3

22 January 2016

ST GEORGE TO ACCELERATE EXPLORATION AT MT ALEXANDER AND HAWAII PROJECTS

HIGHLIGHTS:

• 2016 exploration programme for Mt Alexander and Hawaii Projects is being prepared

  
  

• Extensive exploration of massive nickel‐copper sulphide targets is planned

  
  

• Acquisition of 75% interest in Mt Alexander Project on track to settle on 28 January 2016

  
  

  MAJOR EXPLORATION PROGRAMMES FOR MT ALEXANDER AND HAWAII PROJECTS

  St George Mining Limited (ASX: SGQ) ('St George' or 'the Company') is pleased to announce that major exploration programmes are planned in 2016 for its newly acquired Mt Alexander and Hawaii Projects.

  
  

  These highly prospective but under‐explored projects are located south‐west of the Agnew‐Wiluna belt in Western Australia, which is an established world class region for nickel and gold deposits. These projects complement St George's East Laverton Project, located in the eastern margin of the North Eastern Goldfields and which hosts a number of attractive greenfields nickel sulphide and gold targets. Figure 1 shows the location of these projects.

  
  

  Settlement of the acquisition of a 75% interest in exploration licence E29/638, which is the core tenement at the Mt Alexander Project, is scheduled for 28 January 2016. High grade nickel‐copper sulphides have already been discovered on this tenement with significant intersections including:

  
  

• 4m @ 4.9%Ni, 1.7%Cu and 3.9g/t total PGEs from 91.4m in drill hole MAD012
• 3m @ 3.8%Ni, 1.6%Cu and 2.7g/t total PGEs from 56.3m in drill hole MAD013

For further details of the acquisition of this tenement, please see our ASX Release dated 17 December 2015 'New High Grade Nickel‐Copper Sulphide Project'. All other tenements at the Hawaii and Mt Alexander Projects are owned 100% by St George.

Our technical team has initiated a detailed geological review of the exploration data for the Hawaii and Mt Alexander Projects. The review will be escalated once access to the full data set for the core tenement at Mt Alexander is obtained at the end of next week. A review of the existing data has already identified potential for substantial exploration upside at the Mt Alexander Project.

A further announcement regarding exploration activity for the Mt Alexander and Hawaii Projects will be made after financial completion of the acquisition next week.

John Prineas, Executive Chairman of St George Mining, said:

"We are ready to close the acquisition of Mt Alexander and very excited at starting exploration there to follow‐up the important high grade discovery already made.

"These new projects provide an outstanding opportunity for exploration success and we look forward to announcing more details on our 2016 exploration programme shortly."

Figure 1 - a map of the North Eastern Goldfields showing major nickel projects and highlighting the three St George projects - Hawaii, Mt Alexander and East Laverton.

For further information, please contact:

John Prineas

Executive Chairman

St George Mining Limited ([phone]

[e-mail]

Colin Hay

Professional Public Relations

([phone] mob [phone]

[e-mail]

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 Matthew McCarthy, a Competent Person who is a Member of The Australasian Institute of Geoscientists. Mr McCarthy is employed by St George Mining Limited.

Mr McCarthy 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 Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr McCarthy consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The following sections are 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.	This ASX Release dated 22 January 2016 reports on exploration planning by St George Mining Limited ("St George") at its newly acquired Mt Alexander and Hawaii Projects. This ASX Release refers only to historic exploration drilling and does not report any new drilling results, assay or other sampling exploration work.
Include reference to measures taken to ensure This ASX Release refers only to historic exploration drilling and does sample representivity and the appropriate not report any new drilling results, assay or other sampling calibration of any measurement tools or exploration work. systems used.
Aspects of the determination of mineralisation This ASX Release refers only to historic exploration drilling and does that are Material to the Public Report. not report any new drilling results, assay or other sampling exploration work. 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.
Drilling techniques	Drill type (eg core, reverse circulation, open‐ hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, 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).	This ASX Release refers only to historic exploration drilling and does not report any new drilling results, assay or other sampling exploration work. References to reverse circulation and diamond drilling on E29/638 are to drilling conducted by BHP Billiton Nickel West Pty Ltd ("Nickel West"), the party from which St George has acquired its 75% majority interest in the tenement (see Section: Exploration Done by Other Parties)
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	This ASX Release refers only to historic exploration drilling and does not report any new drilling results, assay or other sampling exploration work.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	This ASX Release refers only to historic exploration drilling and does not report any new drilling results, assay or other sampling exploration work.

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