Partial relinquishment report Pine Creek Property EL 28463, 25 November 2012 to 24 November 2013

Abstract

An extensive exploration review of the controls on gold mineralisation within the Pine Creek Area was completed after failing to intersect mineralisation in a deep and expensive diamond drill-hole (PCDD-001) drilled by St George on EL 27732. The intention of the 2012 exploration review was to develop a set of key targeting criteria, related to local controls on gold mineralisation at Pine Creek. The application of those criteria to the tenements held by St George was to focus exploration activity and to identify non prospective areas for relinquishment. The targeting criteria were used to highlight and confirm priority exploration areas for further exploration. The lower priority areas were also identified with the intention of relinquishing excess ground so as to maximise the use of finite human and financial resources. To maximise the available expenditure and focus on the key target area, the relinquishment of lower priority areas of EL 28463 was recommended. The blocks selected for relinquishment covered areas of the tenement that did not cover the potentially mineralised parallel shear zone. or were deemed to be of a low priority because the diffuse magnetic response indicated the target formation was too deep and/ or the iron and sulphur contents (associated with magnetite and pyrrhotite) were low.