Gold at the East Laverton Property

Extensive gold mineralisation has been identified at the East Laverton Property, both by drilling conducted by previous explorers and by the Company’s own exploration activities.  Numerous gold targets have been generated, with several high priority prospects earmarked for definition drilling.

St George Mining has completed a regional multi-element MMI (“mobile metal ion”) soil geochemical survey on tenements covering a total area of 850 sq km.  The regional survey involved the collection of samples on a 500m staggered grid. 

Infill sampling, on a 50 m spacing, was also completed within the immediate areas of interest. This close spaced infill sampling provides a high resolution of the gold and other metal trends provided by the regional survey and allows for more precise definition of drill targets within the broader gold zones.

To date, two significant new prospects have been identified by this regional geochemical survey:

• Balmoral, a large new gold system with a surface expression of approximately 3 km x 2 km. The prospect was identified through the regional MMI survey and then mapped using 50 m spaced sampling in the core area to define three distinct gold zones within this broader zone. Subsequent analysis of the regional multi-element sample data shows a large geochemical footprint surrounding the gold zones with a proximal molybdenum (Mo), silver (Ag), copper (Cu) response and a distal, north trending tungsten (W), arsenic (As) and antinomy (Sb) response.
• Desert Dragon, which lies to the west of the Desert King Prospect, is another gold system that has been identified with approximately 3 km of strike within the southern part of the tenement. Infill sampling has defined three drill target areas for testing in 2011.

Figure 1 (below) shows the new drill target areas (broken black lines) at Desert Dragon generated following the review of the 50 m spaced MMI samples. The background shows the 50 MMI samples, where the red and pink samples are strongly anomalous samples in comparison with background values. Yellow samples are anomalous in comparison with background values. The green line shows the 2010 drilling which is slightly offset from the new target zones to the north and south.

Figure 1 - Desert Dragon Target Gold Zones

Figure 2 (below) shows the new drill target areas (broken black lines) generated at the Balmoral Prospect following the review of the 50 m spaced MMI samples. The background shows the 50 MMI samples, where the red and pink samples are strongly anomalous samples in comparison with background values. Yellow samples are anomalous in comparison with background values. The Balmoral prospect has a large geochemical foot print that is consistent with a large zoned hydrothermal system. The central zone within which these drill target areas are located is geochemically anomalous in gold, silver, copper and molybdenum. The presence of molybdenum (Mo) is indicative of alkaline magmatic fluid involvement. The central zone is surrounded by a broader area of tungsten, antinomy and arsenic over a strike length of 12 km. 

Desert Dragon and Balmoral will be the key focus of the Company’s ongoing drilling programme.

Figure 2- Balmoral Target Gold Zones