St George Mining for High Quality Nickel Exploration

St George Mining has been a beneficiary of the strategic exit of BHP Billiton from the nickel market. It has acquired assets cheaply that had been highly regarded within the BHP nickel division but for which funding was withdrawn. The company’s large and growing number of potential mineral targets means St George Mining could be construed as an unusually long term exploration investment. While not located on a defined belt, the style of mineralisation sought by the company is consistent with other mineralised systems including well known deposits at Kambalda, Forrestania and the Agnew-Wiluna nickel regions of Western Australia. Mineralised systems of this type are now rarely discovered from single point exploration holes from surface. Programs of incremental drilling, consistent with the approach being followed, stepping out from defined geophysical anomalies or past drill results are proving increasingly successful. As well as its exploration potential, the company provides leverage to nickel market conditions without the risk of dramatic loss of value arising from a single drill result.