886m gold intercept confirmed Hobbs Pipe 1
Sydney, July 30, 2013 AEST (ABN Newswire) - Sovereign Gold Company Limited (
ASX:SOC) presents the final report for diamond drill hole GHD001, affirming the significant scale of gold mineralisation in Hobbs Pipe 1.
Assay results certified by ALS are:
886m @ 1.2g/t Au from surface,
Including: 400m @ 1.4g/t Au from surface
Including: 720m @ 1.3g/t Au from surface
Assay results and geological logging of drill core show that GHD001 skipped out of the pipe and left the mineralised zone after 886m.
Exclusion of results below 886 metres, which are below the likely economic cut off grade, does not detract from the understanding of this report.
Assay results confirm that the exploration target for Hobbs Pipe 1: 65 - 90M tonnes at 1.1 g/t - 1.4 g/t for 2.25M to 4M ounces contained gold continues to be valid.
The potential quantity and grade of exploration targets is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.
Dr. Kris Butera, CEO of Gossan Hill Gold (SOC owns 87%), noted that "An outstanding intersection of 886m @ 1.2g/t Au from surface to the southern contact of the monzodiorite with the enveloping sediments confirms our conceptual models and validates our belief that Mount Adrah will become a world class gold deposit. The current second hole will help identify the width of the system at depth."
Next Deep Diamond Drill Hole (GHD004)
The next drill hole, diamond drill hole, GHD004 is primarily testing 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 Pipe 1 beneath Mount Adrah. It may also confirm that Hobbs Pipe 1 continues to depth.
The hole contacted mineralisation at ~335m from surface. Drilling continues to establish the exit contact point at depth.
GHD004 is a deep steeply inclined hole designed to test the width of Hobbs Pipe 1 between 220m and ~1,000m vertical depth.
Metallurgical Testing
Samples for metallurgical testing have been received by ALS Metallurgy in Burnie Tasmania.
Tests are 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 concentrate.
Overall gold recovery was in the order of 90%.
For diagrams, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-SOC-747032.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.
| ||
|
