Gold and nickel focused St George Mining (ASX: SGQ) has received fresh analysis of core from previous discovery holes at its Pine Creek Property in the Northern Territory, indicating visible gold in discovery hole FEND 18.
The analysis is part of exploration activities at the Blue Thunder Gold Project, within Pine Creek, ahead of drilling due to commence in October 2011.
The company would be encouraged by the visible gold as it indicates "the mineralising fluids contained elevated levels of gold, in excess of what could be absorbed by the carbon and sulphide rich host rocks, which form as free gold."
The discovery hole confirms the presence of a large gold system at Blue Thunder and the potential for vertical and lateral extensions to the known gold mineralisation.
The Pine Creek Property is within the extensive and highly mineralised Koolpin Formation which also hosts the Cosmo Howley gold mine about 30 kilometres to the northeast.
The close similarities between the geological structures at the Cosmo Howley deposit and the Blue Thunder Gold Project provide additional support for the potential gold intersections in holes FEND14 and FEND18.
At the Cosmo Howley deposit 2+ million ounces gold has been recovered by open and underground mining.
Leading edge CSIRO technology is being used for the drill core analysis and a report on the results of this analysis is expected shortly. Results should indicate the potential for rare earths and uranium in the previously drilled part of the Pine Creek Property and assist in future drill hole placement.
The new diamond drilling program scheduled for the fourth quarter 2011 will confirm the high grade intersections in FEND18, identify the up-dip potential of mineralisation and the “top” of the system, and test the down dip extensions of the ore shoot in this area.
A Mine Management Plan has been submitted to the Department of Resources and and finalisation of the plan is expected within about 30 days.