A century to Mitch Sykes was not enough for South Wagga to chase down St Michaels total.
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Set 312 to win, the Blues fell 28 runs short at Robertson Oval on Saturday.
Sykes brought up his second century of the season before being dismissed by Sam Nicholls for 124.
After a promising start, South Wagga lost three quick wickets to be at 4-56 before Sykes and Luke Gerhard put on 162-run partnership.
Gerhard made 64 before becoming Mitch Black’s second of three wickets.
Nicholls finished with the best figures of 3-65.
The Blues then lost their last six wickets for 66 runs to slip it their fourth-straight loss.
South Wagga hasn’t won a match this year and now have everything to play for against Wagga City next week.
The loss leaves the Blues in fourth spot with one match to play but if Kooringal Colts can score an outright win over Wagga RSL it will end their season.