Half Yearly Report and Accounts
Sydney, Aug 29, 2013 AEST (ABN Newswire) - During the reporting period, Sovereign Gold Company Limited (
ASX:SOC) (Sovereign Gold) acquired a majority interest (93.91% of the issued shares) in Gossan Hill Gold Limited (Gossan Hill), an unlisted gold exploration company. The acquisition was funded by the issue of 1.9 million Sovereign Gold shares at 25 cents plus $187,813 cash. Following fundraising by Gossan Hill, Sovereign Gold's equity position in Gossan Hill at the date of this report is 87.14%.The acquisition provided 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.
The principal Gossan Hill 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.
Previous exploration of the Gossan Hill tenements had indicated significant resource upside and in particular, the Hobbs Deposit at Mt Adrah contained a JORC resource of 239,000 oz of gold at 1.13 g/t to a depth of 120 metres at a cutoff of 0.5 g/t Au. At the date of this Report, the JORC Resource had increased to 650,027 oz of gold (1.23 g/t) @ 0.75 g/t cut-off. Metallurgical tests show that gold recoveries were of the order of 92%.
The Hobbs Deposit Pipe 1 has an initial exploration target of 1.5 - 2.5 million oz of gold with a grade range 1.13 - 1.45 g/t contained in 41.2 - 53.6 tonnes but this target has been subsequently revised to 80-104 million tonnes at 1.23 g/t for 3.2 M to 4.6 M oz contained gold. 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.
Funding for the initial Gossan Hill exploration project was obtained from the sale of 1.5 million Precious Metal Resources Limited (PMR) shares reducing Sovereign Gold's equity position in PMR reducing to 79.5%.
Further exploration funding was raised in August 2013 by the placement of a further 8 million shares at 20 cents each to institutional and sophisticated investors.
In early April 2013 Sovereign Gold's cooperation partner, Jiangsu Geology and Engineering Company (SUGEC), as part of its $21 million funding commitment to earn 30% by March 2014 on 10 tenements where Sovereign Gold has a majority interest, provided a large track mounted deep drilling rig with capacity to drill to 800 metres downhole for drilling on EL 7491and EL 7768.
In February 2013 Sovereign Gold raised $500,000 capital, before costs, following a placement of 2.5 million shares at 20 cents each to sophisticated and professional investors. A further $1.6 million was raised in August 2013 through the issue of 8 million shares.
To view the full report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-SOC-752779.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.
| ||
|
