Annual technical report Pine Creek Property EL 27732, reporting period 25 November 2011 to 24 November 2012

Abstract

This current reporting year was the second year of exploration by St George in the Pine Creek Area. The drill-hole was logged using the CSIRO HyLogger, a hyperspectral logging tool, before being structurally logged, cut and the core samples sent for analysis. The core was analysed for gold and for representative rare-earth elements (REE). Select light, medium and heavy rare earth elements were assayed for to test the broader potential of this area for REE, especially in light of the Quantum REE Project of TUC Resources Ltd (ASX:TUC) that is immediately north of EL 27732. The gold results were disappointing and indicated a very tight control on the gold mineralisation previously intersected in that same area. The representative REE samples indicated some anomalism and a fuller suite of REE's were submitted for analysis. These results have now been received and don't justify immediate follow-up. The disappointing drilling results for gold and REE samples in PCDD-001 necessitated a complete review on the current understanding of the geological setting and the controls on gold mineralisation. An extensive exploration review of EL 27732, incorporating all previous and new exploration data, was conducted. Particular attention was given to the localised structural controls as viewed in the nearby Cosmo Howley gold deposit, also hosted within the upright folded Koolpin Formation. A new predictive and diagnostic exploration model was developed. The use of a predictability model for mineral zonation associated with various positions within the orogenic gold system was particularly helpful in challenging past assumptions and in the recognition of a new exploration target in the north of the tenement area. A large multi-element MMI soil geochemical survey was planned to assess this new priority gold target during the 2013 field season.