Quarterly Activities Report
Sydney, July 31, 2013 AEST (ABN Newswire) - Sovereign Gold Company Limited's (
ASX:SOC) quarterly operations report is dated 31 July 2013 and is for the three months ending 30 June 2013.
Corporate
On 28 May 2013 Sovereign Gold Company Limited (Sovereign Gold) held its annual general meeting. All resolutions put to the meeting were passed on a show of hands.
At 30 June 2013, cash and receivables for the Sovereign Gold Group were approximately $1.5m.
Sovereign Gold provided funding of $525,000 to Gossan Hill Gold Limited through the sale of 1.5 million Precious Metal Resources Limited (PMR) shares in July, Sovereign Gold's equity position in PMR reduced to 79.5% from 81.2%.
Exploration Highlights
- Deep diamond drilling at Mt Adrah Hobbs Pipe 1 commenced on 24 June. At the date of this report a continuous homogenous 886m gold intercept has been assayed @ 1.2 g/t Au.
- Mt Adrah conceptual exploration targets for Hobbs Pipe 1 increased to 65 - 90M tonnes at 1.1 g/t - 1.4 g/t for 2.25M to 4M ounces contained gold.
- Drilling commenced at EL7491 using a large track mounted deep drilling diamond drill rig provided by cooperation partner Jiangsu Geology and Engineering's (SUGEC) and has so far confirmed mineralisation widening with depth along a 1.55 km gold-bearing structure, originally thought to be only 730 metres long.
Gossan Hill Gold Limited
During the quarter, Sovereign Gold acquired a majority interest in Gossan Hill Gold Limited (Gossan Hill) having received 93.91% acceptances for its offer. Settlement was effected resulting in Sovereign Gold issuing 1,878,125 of its shares plus cash of $187,813 as consideration in April 2013.
Gossan Hill has numerous Intrusion Related Gold System (IRGS) prospects in New South Wales.
The acquisition of Gossan Hill provides multiple benefits for Sovereign Gold, including an expanded exploration footprint in New South Wales with an additional 3 quality project areas within 8 Exploration Licences.
Previous exploration has indicated significant resource upside at the Gossan Hill properties and in particular, the Hobbs Deposit which should enable Sovereign Gold to rapidly deliver resource growth and leverage off its experience and expertise in exploring for Intrusion Related Gold Systems in New South Wales.
The principal project is the Mt Adrah Hobbs Gold Deposit on EL 6372, believed to belong to the IRGS deposit category. It lies on the Gilmore Suture, north west of the old gold mining centre of Adelong.
Mineralisation in the deposit has been confirmed to 1,030m depth. There are a number of near-by prospects yet to be tested by drilling for additional mineralisation of this type.
Deep diamond drilling at Mt Adrah Hobbs Pipe 1 commenced on 24 June.
At the date of this report a continuous homogenous 886m gold intercept has been assayed @ 1.2 g/t Au.
The Mt Adrah Hobbs Gold Deposit also sits on the same geo-structural system as Newcrest Mining's Cadia Ridgeway gold mine (which hosts 60 million ounces gold equivalent) and Rio Tinto's Endeavour gold mine (8Moz gold equivalent).
Drilling confirms mineralisation widening with depth in EL7491 (ASX 5 June 2013)
- First deep diamond drill hole (ZK001) establishes mineralised zone is widening with depth
- Ongoing Deep drilling to assess full potential of 1.55km identified gold-bearing structure
- Joint venture partner, SUGEC, funding $2m exploration program on EL 7491 to March 2014
Diamond drilling continues on the 1.55km long gold-bearing structure, discovered with Sovereign Gold's cooperation partner, SUGEC, in EL 7491 (ASX 29 April 2013). This newly discovered mineralisation is part of the large Rocky River-Uralla IRGS and has confirmed the repetition of Martins Shaft style mineralisation.
Geochemical sampling (soil and rock chips) and mapping programs have now located additional parallelmineralised structures several hundred metres long.
Diamond drill hole ZK001 (Dip: 75deg, Azimuth 121deg; 345906mE, 6611563mN, WGS84, 56J) was drilled under diamond drill hole SGRDD036 that intersected 2.72g/t Au over 5m from 7-12 metres downhole including 7.8g/t Au over 1m and 12.35g/t Au over 0.5m (ASX 30 January 2013).
ZK0001 has so far intersected two mineralised horizons over a total downhole width of 15.5 metres at 76.24-84.75 metres and 89.9-96.9 metres downhole. This hole demonstrates the width of mineralisation is increasing with depth from 4 metres true width in SGRDD036 to 11 metres true width over 76.24 to 96.9m downhole in ZK001.
The discovery is in EL 7491 currently under joint venture with SUGEC who are spending $2 million on EL 7491 to March 2014 (earning 30%), as part of a total exploration funding commitment of $21 million on 10 tenements where Sovereign Gold has a majority interest.
SUGEC'S large tracked diamond rig is capable of drilling to depths of 800 metres. Sovereign Gold and SUGEC have designed a deep drilling program to test the gold grades laterally and vertically along the 1.55km long goldbearing structure and to establish a JORC resource through 2013.
The original discovery was made by locating within the dyke swarm, hosting Martins Shaft, several diagnostic characteristics (magnetic and radiometric geophysical characteristics, alteration and structure) that coincide with the closest analogue - the 32 million ounce Donlin Creek IRGS gold deposit in Alaska.
This predictive success further supports proof of concept of the large IRGS potential in this area.
The deep drilling program will now include additional holes to test the full length of this 1.55km long mineralised structure that is exposed at surface and has potential for a large, low cost open cut operation.
Sovereign Gold and PMR Tenement Portfolio
Qualifying Statements
The information in this Report that relates to Exploration Information is based on information compiled by Michael Leu who is a member of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists.
Mr Leu is a qualified geologist and is a director of Sovereign Gold Company Limited.
Mr Leu has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person 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 announcement of the Exploration Information in the form and context in which it appears.
References to Mines refer to geographical names, and no inference should be made that Sovereign Gold is operating any mines at this stage of its development.
True Widths
Downhole length, true width not known. All drill intersections are stated as downhole lengths, true width not yet determined.
To view the full report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-SOC-747357.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.
| ||
|
