The project is located 120 kilometres south-southwest of the Agnew-Wiluna belt which hosts numerous world class nickel deposits.
High grade nickel-copper sulphides were discovered at Mt Alexander in 2008 from drilling at the Cathedrals Prospect.
Follow-up drilling at Cathedrals intersected massive, matrix and disseminated sulphides, with results including:
- 4 metres at 4.9% nickel, 1.7% copper and 3.9g/t total PGEs from 91.4 metres;
- 3 metres at 3.8% nickel, 1.6% copper and 2.7g/t total PGEs from 56.3 metres; and
- 6 metres at 3.3% nickel, 1.5% copper and 2.7g/t total PGEs from 60 metres.
John Prineas, executive chairman, commented:
"This is an important strategic acquisition for St George which we believe will deliver significant value for our shareholders.
"Very impressive intersections of shallow high grade nickel‐copper sulphides have already been discovered by drilling at Mt Alexander.
"We are looking forward to our first drilling campaign at Mt Alexander, and the opportunity to make further significant discoveries of high grade mineralisation."
The completion of the acquisition follows satisfaction of all conditions precedent under the sale agreement.
The acquisition by St George includes all technical and exploration data for the project.
Western Areas retains a 25% interest in the Mt Alexander Project and has also become a shareholder in St George.
St George has also allotted 3,500,000 ordinary shares to Western Areas, which agreed to not exercise its right of pre-emption over Nickel West's interest in the Mt Alexander Project.
- Nickel West has off‐take rights to St George's share of any nickel produced from the Project;
- Nickel West may charge a base royalty of 1% of the proceeds from St George's share of any mineral production at the Project; and
- Nickel West may charge an additional royalty of 1% of the proceeds from St George's share of any nickel produced from the Project provided that the additional royalty is only payable if a minimum measured and indicated JORC resource of at least 25,000 tonnes of contained nickel is defined at the Project and payments of the additional royalty start 12 months after commercial production from the Project.
St George has initiated a detailed geological review of the exploration data for Mt Alexander.
The company said that the first joint venture meeting with Western Areas' technical team will take place next week, with a view to preparing a multi-phase exploration program in 2016.