Confirms Major New Gold Deposit by Assays at Hobbs Pipe 1, Mount Adrah
Sydney, July 18, 2013 AEST (ABN Newswire) - The Board of Sovereign Gold Company Limited (
ASX:SOC) are extremely pleased to announce a major extension to the depth potential of the Mount Adrah Hobbs Pipe 1, with assays extending known mineralisation to at least 576m depth.
Priority was given to assay core cut commencing at 284m as gold grades to 300m have already been reported, such as DGG1: vertical hole with 313m @ 1.42g/t Au from 2m - 315m. New core from GHD001 for this interval is being assayed to provide validation of the earlier results and if confirmed will increase the aggregate grade from surface accordingly.
These results provide a clear picture of the grade of mineralisation to 576 metres. Assay results from the rest of the hole to 1,030 metres are pending and will be reported as received.
Dr. Kris Butera, CEO of Gossan Hill Gold (SOC owns 87%), noted that "in conjunction with previous results and drilling, every meter, from surface to 576m (so far!), has contained gold, now confirmed by assays. This continuous mineralisation is significant and bodes well for the future of this deposit."
Managing Director of Sovereign Gold, Michael Leu, stated that, "these initial assay results are outstanding and have confirmed our concepts and targets. Pending the remaining assay results we believe that we have made a new and significant gold discovery. Three additional deep drill holes are planned to commence immediately. They are designed to test the width and strike extension of this pipe and provide additional input for a resource estimate. As Pipe 1 could be part of a much larger Intrusion-Related Gold System we are very excited about the future prospects for this area."
Grades are concordant with visual logging, confirming interpreted visual mineralisation throughout the hole and core.
Grades are underpinning the company's previously reported conceptual geological models and target grades for Mt Adrah Hobbs Pipe 1. The aggregate is within the target grades of 1.13 to 1.4 g/t.
Metallurgical testing is being conducted to validate historic metallurgical work undertaken by Michelago Resources NL in 1996, which yielded gold recoveries of up to 94% of the gold, achieved via flotation into a sulphide concentrate1. Overall gold recovery was in the order of 90%.
Next Deep Diamond Drill Hole (GHD004)
Drilling will commence next week on a second deep hole to test the width of the mineralisation at the Hobbs Deposit, Pipe 1.
The planned diamond drill hole (GHD004) is a deep steeply inclined hole designed to test the width of the Hobbs Deposit Pipe 1 between 220m and 1,000m vertical depth.
This hole will primarily test the lateral extent of the deposit at depth and in a NNE direction, where the company believes the system may be spatially associated with the main intrusive source responsible for the Hobbs Deposit Pipe 1 beneath Mount Adrah.
To view the Video Interview with CEO Michael Leu, please visit:
http://www.abnnewswire.net/press/en/75545/sovereign
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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