St. George Mining Ltd. · ASX:SGQ
St. George Mining — Precious & Battery Metals Summit, Zurich and London 2018
29 slides from St. George Mining's conference presentation, Nov 6, 2018
Slide 1: Western Australia's Next Big Nickel Sulphide Story
Western Australia’s Next Big Nickel Sulphide Story Precious & Battery Metals Summit, Zurich and London 6 and 8 November 2018 ASX: SGQ
Slide 2: St George – Growth Nickel Stock
St George – Growth Nickel Stock Nickel-copper sulphide discovery in WA Major Drilling to expand re-rating resource potential of St George Upswing in nickel price On right: Diamond drilling at Mt Alexander 2
Slide 3: Breaking News
Breaking News Best intercepts of massive nickel- copper sulphides at the Investigators Prospect Announced 25 October and 1 November 2018 MAD126: 14.37m of mineralisation from 177m incl. 5.25m @ 8.8%Ni and 4.5%Cu MAD127: 12.02m of mineralisation from 180m incl. 6.39m @ 8.08%Ni and 5.06%Cu (average XR
Slide 4: Nickel Market Dynamics are Changing
Nickel Market Dynamics are Changing 4
Slide 5: Upswing in Cycle
Upswing in Cycle Decreasing Stockpiles Support a Rising Nickel Price: Glencore note “demand is much stronger than most market participants recognise, and the deficit is much higher than people think”, noting a substantial fall in global inventory since 2015. “There is very limited supply-side respon
Slide 6: EV Demand
EV Demand Demand Rises on Electric Vehicle Revolution • Nickel sulphide (Class 1 nickel) is required for EV batteries; nickel pig iron, etc (Class 2) is not suitable for batteries • 1Mt deficit in 2025 = price pressure Source: McKinsey Basic Materials Institute Australian Financial Review, 7 August
Slide 7: Nickel Price to Outperform
Nickel Price to Outperform LME Week, 8 October 2018 – 55% of metal traders vote nickel as the most exciting commodity for upcoming 12 months. UBS, Miner’s Price Review, June 2018: Best Commodities on Risk/Return ? “Nickel is our preferred play on a >12 month view.” Commodity Units Current Price LT F
Slide 8: Securing Nickel Supply
Securing Nickel Supply UBS, Miner’s Price Review, June 2018: “EV battery demand is emerging faster than expected. Inventory is falling, premia are rising, indicating a scramble for nickel metal. Meanwhile little battery-ready mine supply investment is being made.” The West, The West, 18 August 2018
Slide 9: St George – Corporate Overview
St George – Corporate Overview 9
Slide 10: Market Profile and Capital Structure
Market Profile and Capital Structure Listed shares (SGQ): 298,116,211 Share Ownership Listed options (SGQOB): 24,579,714 Top 10: 19% Top 20: 27% SGQOB - exercise price of 20c, expiring on 30 Sept 2020. Directors: 6% Market cap: A$42m (@14 per share) Cash: A$3.8m (at 30 Sept 2018) Largest Shareholder
Slide 11: Highly Qualified Team
Highly Qualified Team Directors, Management and Consultants with a Track Record of Success John PRINEAS, Executive Chairman – founding shareholder with over 25 years experience in mining, and the banking and legal sectors servicing the resources industry. Tim HRONSKY, Technical Director – over 25 ye
Slide 12: The Discovery at Mt Alexander
The Discovery at Mt Alexander 12
Slide 13: Mt Alexander
Mt Alexander Favourable Location Three Projects in Western Australia: • Stable and reliable mining jurisdiction MT ALEXANDER DISCOVERY • Exceptional discovery in Western Australia • High-grade nickel-copper sulphides Favourable Location: • Located S-SW of world class nickel and gold mines of the Agn
Slide 14: Exceptional Nickel-Copper Sulphide Discovery
Exceptional Nickel-Copper Sulphide Discovery Cathedrals Belt Discovery at Shallow Depths: • Massive sulphide mineralisation 30m from surface • Deeper drilling is underway to scope continuity at depth High Grade and Polymetallic: • Nickel sulphide plus copper, cobalt and PGEs • Key battery/EV metals
Slide 15: Large Mineral System
Large Mineral System • Investigators, Stricklands and Cathedrals Prospects are located within the 4.5km strike of the Cathedrals Belt – each with increasing resource potential • Definition drilling underway to fully scope the scale of the discovery Above: Mt Alexander tenements against RTP magnetics
Slide 16: Drilling Success Continues
Drilling Success Continues Wide intersections of high-grade Ni-Cu-Co-PGEs 2017 – some of the best intersections (with assays): MAD71 (Stricklands Prospect): 17.45m @ 3.01%Ni, 1.31%Cu, 0.13%Co and 1.68g/t total PGEs from 37.45m, including 5.3m @ 4.39%Ni, 1.45%Cu, 0.21%Co and 2.09g/t total PGEs from 3
Slide 17: Extensions of High-Grade Mineralisation
Extensions of High-Grade Mineralisation 17
Slide 18: Investigators Prospect
Investigators Prospect Multiple high-grade hits over a 1,500m strike High powered SAMSON electromagnetic (EM) survey identifies large areas of EM conductivity indicating potential for extensive sulphide mineralisation Mineralised ultramafic unit dips 30 degrees to the north Drilling on three n
Slide 19: Plunge Increased by Latest Drilling
Plunge Increased by Latest Drilling Drilling and downhole EM surveys used concurrently to identify more high-grade mineralisation at depth MAD60 Line (approx. 231225E) has down plunge strike of high- grade mineralisation to 320m DHEM in MAD119, a 150m step- out to the north, has identified a str
Slide 20: MAD111 Line
MAD111 Line Thickest Massive Sulphides at Investigators MAD126 and MAD127 - thick massive sulphides with +8%Ni and +4%Cu Strong EM conductors up-dip and down plunge (e.g. circa 200,000 Siemens) Channelised lava flow with likely extensions of mineralisation Above: Schematic cross section of the MAD11
Slide 21: Stricklands Prospect
Stricklands Prospect +400m strike with wide intercepts Multiple high-grade hits including drill hole MAD71: 17.45m @ 3.01%Ni, 1.31%Cu, 0.13%Co and 1.68g/t PGEs from 37.45m, including the massive sulphide zones of: 5.3m @ 4.39%Ni, 1.45%Cu, 0.21%Co and 2.09g/t PGEs from 39.3m; and 2.02m @ 5.05%Ni, 2
Slide 22: Cathedrals Prospect
Cathedrals Prospect High grade mineralisation on two surfaces Numerous intersections of nickel-copper sulphides on two surfaces – the Cathedrals ultramafic and the footwall fault below including MAD56: 7.5m @ 3.90%Ni, 1.74%Cu, 0.12%Co and 3.32g/t total PGEs from 57.8m, including 3.15m @ 6.36%Ni, 2
Slide 23: Metallurgical Testwork
Metallurgical Testwork High Recoveries from Ore: • >99% recoveries of Ni and Cu to concentrates from preliminary testwork on massive sulphides Clean Concentrate: • No deleterious elements like MgO, talc or arsenic Standard Flotation: • Separate nickel and copper concentrates produced by standard flo
Slide 24: Opportunity for Low Cost/High Margin Project
Opportunity for Low Cost/ High Margin Project Shallow Mineralisation Existing Infrastructure Clean Concentrate Low cost drilling/ low Nearby processing High grade Ni and Cu cost potential mining plants plus cobalt and PGEs Well defined zones of Close to existing roads, Excellent metallur
Slide 25: Upside with Regional Exploration
Upside with Regional Exploration 25
Slide 26: Mt Alexander Belt
Mt Alexander Belt Underexplored belt with proven massive nickel sulphides Mt Alexander Belt is north-northwest trending with a strike of 7km Historical drilling has intersected widespread nickel sulphides including massive sulphides Prior drilling completed mostly as wide-spaced drill holes (u
Slide 27: Northern Areas
Northern Areas Newly recognised magnetic trends, never explored New high resolution magnetic data for the northern tenements – E29/548 and E29/954 – has recognised east-northeast structures parallel to the Cathedrals Belt These structures may represent ultramafic sequences similar to the Cathedr
Slide 28: St George Mining: creating shareholder wealth through exploration success
St George Mining: creating shareholder wealth through exploration success Above: diamond drill rig at Stricklands, Cathedrals Belt. Right: Drill core from MAD108. 28
Slide 29: Disclaimer: Competent Person Statement
DISCLAIMER: Certain statements contained in this presentation, including information as to the future financial or operating performance of St George Mining Limited (ASX:SGQ) and its projects, are forward looking statements: -may include, among other things, statements regarding targets, estimates a
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