St George Mining has moved quickly to top up the company’s landholding at the Mt Alexander project near Leonora following the discovery of lithium mineralisation during its maiden drill program, adding an exploration licence to its portfolio and lodging an application for a prospecting licence.
Both tenements sit adjacent to the company’s Jailbreak prospect where lithium mineralisation has been identified from on-site analysis of assays from pegmatites and where St George is pursuing an aggressive exploration push. Diamond core drilling is about to start in parallel with the RC drilling already underway.
St George Mining Executive Chairman, John Prineas said: “This tenement acquisition further strengthens our land position at Mt Alexander and stamps St George as a dominant player in this new lithium province."
“Our work has already identified pegmatite outcrops on the new ground, indicating expansion potential for the lithium mineral system at our existing tenements. We are keen to commence field mapping and rock chip sampling on the new tenements as we try to replicate the success that delivered the high-grade lithium results at our Jailbreak prospect.”
Field mapping and sampling is to begin within weeks.
In mid-October, the company’s first batch of 10 samples of rock chips at Jailbreak returned grades as high as 2.72 per cent lithium oxide, plus a host of other derivatives such as tantalum, rubidium and caesium. The first lithium-focused drilling at Mt Alexander which began shortly after the collection of the rock chip samples was planned as an initial test down-dip from outcropping pegmatites at Jailbreak with 20 RC holes ranging between 60m and 150m for about 2000m. On-site analysis has already identified visible lithium mineralisation with pegmatite intervals up to 13m thick.
Additional drilling will be conducted pending a review of results. Deeper holes at the lithium targets will be completed by diamond core drilling.
The new ground, E29/1143, is contiguous with St George’s existing Mt Alexander tenure and provides near-continuous coverage over 15km of pegmatite corridor as well as contact with the Copperfield Granite – the interpreted source of the mineralised pegmatites.
The total payments made in connection with the acquisition comprised of $50,000 cash and 4,475,319 in fully paid ordinary shares of St George. A 1 per cent net smelter royalty in regard to any minerals mined also attaches to E29/1143.
The general area has been something of a lithium hot spot in recent times and the subject to some intense interest by explorers both small and large. Red Dirt Metals proved to be the bellwether for the latest surge in activity after unveiling significant lithium discoveries at its Mt Ida project approximately 15km to the south of Mt Alexander in September last year.
To Mt Alexander’s north sits Liontown Resources’ Kathleen Valley lithium deposit. Zenith Minerals is drilling for lithium at its Mt Ida North project, to the southeast of Mt Alexander and Hawthorn Resources is in a joint venture with Hancock Prospecting at Mt Bevan to the project’s south. Other neighbours include BHP nickel mines and IGO’s Cosmos nickel mine.
As the world scrambles for lithium to pursue the global strategy of decarbonisation, any possible hint of a major lithium province being confirmed will likely see a conga line of explorers itching to get onboard.
St George’s move to top up its holding in the area may prove to be portentous.
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By Matt Birney
