Hobbs Pipe 1 JORC Resource Upgrade and Revised Conceptual
Sydney, Aug 22, 2013 AEST (ABN Newswire) - Sovereign Gold Company Limited (Sovereign Gold) (
ASX:SOC) commissioned an independent review by Geosun Pty Ltd (see note 1) (Geosun) of exploration work completed to date, together with an updated geological computer model of Hobbs Pipe 1. As a result of this work by Geosun, Sovereign Gold is pleased to announce an improved JORC Resource estimate at Mt Adrah Hobbs Pipe 1 of 650,027 ounces gold (1.23 g/t) @ 0.75 g/t cut-off.
In addition, this work has resulted in a revised Conceptual Exploration Target for Hobbs Pipe 1 of 80 - 104M tonnes at 1.23 g/t - 1.37 g/t for 3.2M to 4.6M ounces contained gold developed by Geosun.
The potential quantity and grade of exploration targets is conceptual in nature. Other than the declared Mineral Resource there has been insufficient exploration to define a further Mineral Resource and it is uncertain if further exploration will result in the determination of a further Mineral Resource.
Key conclusions from the Geosun study include:
- 650,027 ounces gold (1.23 g/t) @ 0.75 g/t cut-off
- JORC Resource upgrade has included an increase in Resource in the Measured and Indicated category.
- Revised Conceptual Exploration Target of 80-104M tonnes at 1.23 g/t - 1.37 g/t for 3.2M to 4.6M ounces contained gold
- Drilling underway to test the strike extent of the Hobbs 1 Pipe to the ESE, which is expected to further increase the JORC Resource
Highlights from recent drill work on Hobbs Pipe 1
- GHD001 - Visible mineralisation observed throughout entire hole depth of 1,030m
and 886m @ 1.2 g/t Au continuous intercept from surface
- GHD004 - Approximate true width of Hobbs Pipe 1 ~110 metres
- Resources - 650,027 ounces gold (1.23 g/t) @ 0.75 g/t cut-off
- Exploration Target - 80-104M tonnes at 1.23 g/t - 1.37 g/t for 3.2M to 4.6M ounces contained gold
Further Work Underway
Sovereign Gold has a comprehensive program on Hobbs Pipe 1 comprising:
- Additional 2 deep drill holes designed to determine the strike length of the pipe, now estimated to be 250-300m (an increase from initial estimates of 200m):
-- GHD005 will test strike length toward the ESE (inclined to 75deg); and
-- GHD006 will test the strike length toward the WNW (inclined to 78deg)
- Metallurgy Report: results from test work on suitability to BIOX(R) process technology underway (metallurgy tests to date confirmed 9-10% free gold; 95% recovery of remainder in sulphide flotation concentrate)
- Bond Ball Mill Work Index (BBMWI) test
- A review of mining methodology
In addition, Sovereign Gold will undertake a 3DIP review of further targets in close proximity (within 500m) of Hobbs Pipe 1, seeking to confirm the position and strike of additional structures similar to Hobbs Pipe 1.
Revised Exploration Target
Geosun completed an extensive review of Hobbs Pipe 1 and created a computer geological model of the mineralisation. This resulted in a revised Conceptual Exploration Target of 80 - 104M tonnes at 1.23 g/t - 1.37 g/t for 3.2M to 4.6M ounces contained gold including the current JORC estimate of 650,027 ounces at a grade of 1.23 g/t at .75 g/t cut-off reported in this report.
The potential quantity and grade of exploration targets is conceptual in nature. Other than the declared Resource there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a further Mineral Resource.
The limits of Geosun's assessment were based on a Conceptual Exploration Target of 1,200m to 1,300m deep, 100m to 120m wide and a strike length of 220m to 250m.
The Exploration Target is not an extrapolation of the existing resource and is conceptual in nature and the potential quantity and grade of exploration targets is also conceptual in nature.
Geosun has also reviewed the objectives of Sovereign Gold for the August/September 2013 drill program to grow the overall inventory to over 3.1 million ounces of gold. This objective is within the range considered in the Conceptual Exploration Target.
This objective should not be viewed as an estimate of Mineral Resources or Ore Reserves. However, it is based on experience gained in developing the current JORC estimate of 650,027 ounces at a grade of 1.23 g/t at .75 g/t cut-off and additional knowledge being gained from the current exploration program.
Careful consideration of the following factors in an ongoing drilling strategy will provide additional support for the upper range of the exploration target:
- the number and spacing of drill holes planned and optimized;
- the likely strike and depth extent of the mineralisation delineated; and
- the likely widths of any mineralisation to be encountered and average resource grades.
Note:1 Geosun Pty Ltd is a privately-owned Melbourne, Australia based mining consulting company that provides multidisciplinary services to clients in the global mining resources industry.
To view tables, figures and resource estimation method, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-SOC-751000.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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