St George Mining Ltd (ASX:SGQ) has opened higher on identifying significant exploration potential for lithium pegmatite mineralisation extending south from its high-grade Mt Alexander Nickel-Copper-PGE Project in the North-Eastern Goldfields of Western Australia.
The company's initial field mapping and rock chip sampling have confirmed numerous outcropping pegmatite dykes occurring in swarms that extend over 15 kilometres within the project.
Notably, assays from initial pegmatite rock chip sampling at Mt Alexander have returned anomalous values for lithium, caesium, tantalum and rubidium supporting the potential for lithium mineralisation to occur at depth.
What’s more, St George has identified rubidium values as high as 0.6%, with the anomalous metal seen in sampling across the 15-kilometre project area. This is a key indicator element for potential lithium mineralisation in weathered environments.
The news has been well received by investors with shares as much as 38.5% higher in early trading to $0.036.
Moving forward, systematic rock chip sampling and field mapping of pegmatites are underway at Mt Alexander to finalise targets for drilling in the December quarter.
“Case to accelerate exploration”
St George executive chairman John Prineas said: “The results from our initial fieldwork to scope the lithium potential at Mt Alexander are very encouraging and support a compelling case to accelerate exploration for lithium pegmatite mineralisation.
“We will advance the lithium exploration in tandem with drill testing several very promising, recently identified nickel targets announced on September 1, 2022.
“We are particularly excited by the strong rubidium values in sample assays received to date – this is an excellent indicator of pegmatites favourable for lithium mineralisation.
“The initial results highlight the lithium potential from the extensive pegmatite outcrop at our project.
“Mt Alexander has never been explored for lithium, providing St George with an outstanding opportunity to make a greenfields discovery in what has become a lithium exploration hotspot.
“The pegmatites at Mt Alexander may be part of the same system that hosts the major lithium discovery announced by Red Dirt Metals at its Mt Ida Project to the southeast of our ground, which further underpins the lithium prospectivity at our project.
“The lithium opportunity at Mt Alexander is a perfect complement to our nickel sulphide discoveries at the project and expands our focus on EV and clean energy metals.”
Forward plan
St George has kicked off a detailed field exploration campaign at Mt Alexander to define targets for drill testing.
This fieldwork includes mapping and systematic sampling of the numerous outcropping pegmatite dykes along the belt.
The width at the surface of the pegmatites mapped to date is up to 15 metres though the true thickness is not yet known because of the uncertainty of the dip angle. This will be further clarified by the current field mapping.
Importantly, the prospective pegmatite outcrops have the width and strike that could provide scale to any potential discovery.
Targets for drill testing will be finalised once the results of the field campaign are assessed.
Furthermore, the maiden drill program for the lithium targets is scheduled to commence in the December quarter.