The St George Mining Ltd (ASX: SGQ) share price is off to the races today.
Shares of the ASX resource explorer were up almost 60% at market open. At the time of writing the share price is up 21.62%, trading at 9 cents each.
We look at the company's latest announcement.
What did St George report?
The St George Mining share price is soaring after the company reported it had discovered new high-grade nickel-copper sulphides deposits. The discovery was made at its Mt Alexander Project in the north-eastern Goldfields of Western Australia.
Additionally, the company said the results from 3 separate electromagnetic (EM) conductors were interpreted to have a massive sulphide source.
One of the drill holes (MAD199) was drilled to a downhole depth of 378.8 metres. It returned a "very strong conductivity" of 19,320 Siemens. St George said it also intersected a 10.96-metre interval of continuous nickel-copper sulphides from 333.6 metres downhole, "confirming the conductor as high-grade nickel-copper sulphides".
According to the release, the results support the project's potential to deliver significant additional mineralisation in the area.
Commenting on the results, St George Mining's executive chairman John Prineas said:
At more than 300 metres below surface, this is the deepest massive nickel-copper sulphides identified in the Cathedrals Belt and confirms our interpretation that the large intrusive mineral system at the Cathedrals Belt can host significant mineralisation at depth.
Importantly, there are multiple other EM conductors proximal to the MAD199 intersection – both up-dip and down-dip – which have yet to be tested. The result in MAD199 gives us great confidence that these additional conductors are also mineralisation and that we may have discovered a very fertile section of the Cathedrals intrusive unit.
Drilling and EM surveys continue around the clock.
St George Mining share price snapshot
St George Mining shares are down 11% over the past full year, compared to a gain of 31% on the All Ordinaries Index (ASX: XAO).
Despite today's boost, the St George Mining share price remains down 11% year-to-date.