Next Investors logo grey

St George defines large VMS prospect at East Laverton

|

Published 05-SEP-2014 13:18 P.M.

|

3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

St George Mining (ASX:SGQ) has provided further information regarding the new volcanic massive sulphide prospect identified at its East Laverton property in Western Australia.

VMS potential at the East Laverton Property was highlighted through the results of the 2012 reconnaissance drilling completed by BHP Billiton Nickel West as part of the previous Project Dragon farm-in arrangement.

That drilling intersected thick metal‐rich and sulphide‐rich sediments with elevated levels of zinc and copper mineralisation. The sulphide units intersected by the drilling were up to 90 metres thick with mineralisation grading up to 4460 ppm zinc and 1400ppm copper.

The presence of both komatiite hosted nickel sulphide mineralisation and VMS hosted base metal at East Laverton is consistent with the genetic relationship that exists between these styles of mineralisation.

Volcanic massive sulphide lenses are an important source of crustal sulphur which is required for the formation of nickel sulphide deposits.

The relationship between nickel sulphide and VMS mineralisation means that preserved VMS deposits would typically be hosted by rocks away from the main ultramafic belt.

St George Mining Executive Chairman, John Prineas noted:

“This is an exciting development which backs up our great confidence in the potential for a range of metal discoveries at East Laverton in addition to the proven nickel prospectivity there.

“We are really looking forward to returning there in October for the next round of drilling as we continue to define the great exploration opportunity we have at East Laverton.”

Favourable prospect geochemistry

A review of the geology and geochemistry suggest that a marginal section of a larger VMS system may have been intersected.

The modelled electromagnetic conductor Dragon 3 is adjacent to the banded sulphide mineralisation intersected, and could represent a more central part of the VMS system, where there is a greater likelihood of more massive style mineralisation and higher base metal grades.

This area remains to be tested and is a priority drill target for the Phase 2 drilling program, scheduled for October.

VMS deposits have a stacked and zoned alteration profile with a predictable geochemical zonation which assists in understanding where a single drill intersection is situated within the wider mineral system.

The geochemical and alteration profile of the intersection is consistent with a distal part of a VMS mineral system, with elevated levels of sulphur, magnesium, potassium, barium, and lead in comparison to the country rocks.

This is a typical geochemical profile for VMS mineralisation; elevated potassium is related to sericite alteration, and elevated magnesium is related to peripheral magnesium‐rich chlorite alteration formed by interaction with sea‐water.

The more central parts of the mineral system, which are preserved from extensive sea water interaction, are iron‐chlorite dominant.

The elevated zinc and copper in the sediments are formed in a dynamic exhalative environment associated with volcanic vents, again consistent with distal VMS‐style mineralisation.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.