Extensive Higher Grade Gold Zone Encountered at Hobbs Pipe
Sydney, Sep 30, 2013 AEST (ABN Newswire) - Sovereign Gold Company Limited (Sovereign Gold) (
ASX:SOC) is pleased to report continued positive results from the exploration program currently underway at Hobbs Pipe 1 of the Mt Adrah Hobbs Gold Project, particularly the intersection of a large higher-grade zone in hole GHD006.
Extensive higher-grade gold zone encountered at Hobbs Pipe 1
- Higher grade zone of 178m @ 2.0 g/t Au from 400m encountered in GHD006
- 3D IP Survey completed - results expected by mid-October
- Metallurgical testing confirms 92% overall gold recoveries possible
Summary of Material Information
The information in this report relates to Hobbs Pipe 1 of the Mt Adrah Hobbs Gold Project. As per the 2012 JORC reporting guidelines, a summary is presented of the most recent phases of the exploration program (comprising three diamond core holes). A more detailed description is contained in Table 1 and Appendices A and B.
Broad, higher grade zone identified in Hole GHD006
- Higher grade zone of 178m @ 2.0 g/t Au from 400m
- Included within a strongly mineralised intersection of?? 826m @ 1.3 g/t Au from surface, also including 408m @ 1.6 g/t Au from 400m
- Hole ended at 855.9m
Dr Kris Butera, CEO of Gossan Hill Gold Limited said "These results are very significant and show that parts of the deposit host significant gold grades well above the average grades of other bulk tonnage gold-bearing systems in the Lachlan Fold Belt".
"Further intersections of such broad higher grade zones may significantly impact the overall grade and gold content within the deposit, potentially increasing the gold content per vertical metre and consequently the overall project economics."
Completion of 3D IP Survey data collection
- Data collection complete
- Awaiting construction, and interpretation, of final 3D Inversion and Model
Metallurgy test results received from ALS Burnie
- 9.6% free gold
- 96% of gold recovered in rougher flotation concentrate
- 95.6% of gold in rougher flotation concentrate recovered through BIOX process
- Gold grade is 20.7 ppm with 94.9% gold recovery in rougher flotation concentrate
- 92% overall gold recovery
Recent reflected light microscopy on samples of the ore revealed that a significantly larger portion of the gold than previously recognised may be liberated by fine grinding, and that the refractory component of the ore may be much less than indicated by routine initial metallurgical test work based on a conventional grind of samples to <100 microns. If confirmed, this may mean that a simpler processing route and higher gold recoveries than 92% can be achieved.
Mineralisation observed in Hole GHD007 - completed to a depth of 924.1m, key observations include:
Hole GHD008 underway, targeting the western margin of Hobbs Pipe 1 at depth and possible extensions to the higher grade zone intersected in GHD006
- Currently at ~500m down hole, and in mineralised monzodiorite
The Mt Adrah Project is approximately 23km north west of the township and old gold mining centre of Adelong, in NSW. The Hobbs IRGS deposit is close to good infrastructure (power, transport and water) and is held within EL 6372, EL7844, EL 8127 and ELA 4868.
Hobbs Pipe 1 in EL 6372 has a JORC compliant 650,000-ounce resource, consisting of:
-----------------------------------------Category Tonnes Grade (g/t) Oz Au*-----------------------------------------Measured 2,594,000 1.21 101,000Indicated 7,598,000 1.24 303,000Inferred 6,175,000 1.24 246,000 16,367,000 1.23 650,000-----------------------------------------* At cut-off grade of 0.75 g/t. Differences may occur due to rounding.
Extensive gold mineralisation identified in assay results from Drill Hole GHD006
A significant zone of higher-grade gold mineralisation was intersected in drill hole GHD006, where 178m @ 2.0 g/t Au from 400m was returned from within a broader zone of 826m @ 1.3 g/t Au from surface, also including 408m @ 1.6 g/t Au from 400m. GHD006 was completed at 855.9m.
Further encouraging observations were made in drill hole GHD007
Drill hole GHD007 is oriented toward the NE, and was designed to target the NE edge of Hobbs Pipe 1 near the surface, and then continue on to test the geology beneath historical highly anomalous hornfels metasediment hosted mineralisation.
Once leaving Hobbs 1 pipe, the hole entered into a very strongly altered and skarnified zone of hornfels characterised by semi-continuous zones of intense stockwork quartz veining.
Shallow historic holes drilled above this package yielded results of up to 150m @ 0.4 g/t Au from surface (hole MARC-3) and 66m @ 0.6 g/t Au from surface (hole MAAT-58).
Core has been sampled and sent for assay to determine whether there is enough gold mineralisation to warrant further investigation of its economic potential.
Drill Hole GHD008 testing width of Hobbs Pipe 1 along strike and presenting consistent mineralisation
Hole GHD008 is currently at a depth of ~500m and has continuously been in altered and mineralised monzodiorite. The hole has been designed to test the western edge of the pipe at depth, and to follow up on the broad higher grade gold zone intersected previously in hole GHD006 drilled to the north of the current hole.
3D IP Survey completed with results expected by mid-October
A 3D IP Survey, comprising 7 arrays over an area of approximately 2 km x 1,000m has been completed. The objective of the 3D IP survey is to aid in the search of further Hobbs-style intrusion hosted, or quartz stockwork vein-hosted mineralisation within 1km of the Hobbs deposit.
The collection of data for the 3D IP survey is now complete, and a final inverted and assessed 3D model of the data is expected by mid-October.
View images and maps, visit:
http://media.abnnewswire.net/media/en/docs/ASX-SOC-758341.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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