Visible Gold Mineralisation Throughout 1 Kilometre Drill Hole
Sydney, July 11, 2013 AEST (ABN Newswire) - Sovereign Gold Limited (
ASX:SOC) Announce the Mt Adrah Hobbs gold bearing deposit - Initial hole completed at 1,030 metres with visible mineralisation observed throughout entire hole depth of 1,030m (beyond initial 1,000m target)
In Addition:
- Continuous intercept from surface to 886m
- Geologists confident mineralisation continues at depth
- First assays due next week
- Drill rig remains on site ready for next evaluation hole
The initial drill hole (GHD001) was completed at 1029.6 metres with mineralisation observed both in altered monzodiorite and quartz veined metasediments throughout. There is a continuous intercept with visible mineralisation from surface to 886m, with zones of mineralised monzodiorite extending to bottom of hole.
Geologists have interpreted the system to extend much deeper than the currently observed mineralisation, enhancing the company's conceptual geological models and targets.
GHD001 geology
- 0-886m: Strongly sericite altered monzodiorite from surface with disseminated sulphide mineralisation
- 886-911m: Mafic intrusive with some sulphide bearing quartz veins near the contact with the monzodiorite
- 911-1030m: Silicified metasediments with sulphide bearing quartz veins and zones of sericite altered monzodiorite up to 4m wide with disseminated sulphide mineralisation
420m of core have been received by testing laboratory ALS and assay results are pending. The remaining core has been split and logged and will be sent to ALS for assay.
GHD001 was designed to test the deeper extension of previously identified gold mineralisation. Visual logging has confirmed interpreted visual mineralisation throughout the hole and core is being assayed to confirm grade.
The Mt Adrah Hobbs Gold Deposit also sits on the same large scale tectono-structural system as Newcrest Mining's Cadia Ridgeway gold mines (which hosts 60 million ounces gold equivalent) and Rio Tinto's Northparkes gold mine (8 million ounces gold equivalent) (see figure on page 3 in link below).
The Hobbs deposit is at a major dilational site along the Gilmore Suture, and the zone of structural complexity immediately to the south of the deposit - representing a major exploration target - is analogous to the giant Donlin Creek system and geologically similar to Goonumbla - Northparkes Porphyry Copper-Gold Deposits.
It is geologically similar to Northparkes in so much as focus of magmatic-hydrothermal system concentrates in a field of 'pipe' shaped ore bodies. And in actual fact, the difference between Northparkes and Mount Adrah is the oxidation state of the magma responsible for the generation of the hydrothermal system. Northparkes is classic oxidised porphyry copper system whereas Mount Adrah is a classic reduced intrusion-related gold system (IRGS).
Basically all differences between the two are nothing more than the oxidation state of the magma. It has the greatest geological affinity to Donlin Creek in terms of intrusive nature, metallogeny and regional local structural control.
A detailed comparison of the shared diagnostic characteristics of Donlin Creek and Mt Adrah Hobbs Gold Deposit can be found on the attached table on page 4.
Economic mining rationale
The deposit as drilled so far (to a depth of 1029.6m) has a continuous intercept with visible mineralisation from surface to 886m.
Amenability studies from recent core to assess rock mechanics are underway. A number of bulk underground mining methods are now routinely used in hard rock mining around the world, and there are two examples of successful bulk underground hard rock mining in NSW (Cadia Ridgeway, Newcrest and Northparkes, Rio Tinto).
Qualifying Statements
The information in this report that relates to Exploration Information is based on information compiled by Michael Leu a Member of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists together with Dr Andrew White, a Fellow of the Australian Institute of Geoscientists and Jacob Rebek and Dr Kris Butera, Members of the Australian Institute of Geoscientists Mr Leu and Jacob Rebek are qualified geologists and are directors of Sovereign Gold Company Limited.
Dr White is a director of Gossan Hill Gold Limited.
Dr Kris Butera is CEO and director Gossan Hill Gold Limited.
Mr Leu, Jacob Rebek, Dr White and Dr Butera have sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activity, which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Resources.
Mr Leu consents to the inclusion in this report of the Exploration Information in the form and context in which it appears.
To view figures, please visit:
http://media.abnnewswire.net/media/en/docs/75497-ASX-SOC-744466.pdf
About Sovereign Gold Company Limited
Sovereign Gold Co Ltd (ASX:SOC) is an Australian-based specialist gold exploration company. Sovereign Gold has a portfolio of quality tenements located in Eastern Australia where there is known potential for the occurrence of Intrusion-Related Gold Systems (IRGS). Sovereign Gold has a highly prospective tenement package covering the Rocky River-Uralla Goldfield, 21km southwest of Armidale, NSW, Australia. Sovereign owns the recent Mt Adrah Hobbs IRGS discovery south-east of Wagga Wagga, NSW.
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