Bonanza Hit Confirms Multiple High-Grade Structures
Sydney, Nov 21, 2013 AEST (ABN Newswire) - Sovereign Gold Company Limited (
ASX:SOC), through subsidiary Gossan Hill Gold Limited, is pleased to announce the discovery of a second high grade reef system proximal to the Hobbs Pipe deposit. The new system, named the White Deer Reef is represented by a 1.2m wide quartz vein bearing significant visible gold, intersected in drill hole GHD011.
The hole also intersected the interpreted continuation of the Castor Reef approximately 60m along strike to the SE of the 10m @ 17.7g/t Au intercept in hole GHD009 - a 40cm quartz vein with visible gold was encountered within an envelope of strong alteration at ~447m in GHD011. Likewise, the continuation of the White Deer Reef is interpreted as a strong quartz and alteration zone at ~720m in GHD009. In the case of both reefs, quartz float and historic workings indicate that they potentially have vertical extents in excess of 600m from the surface.
Gossan Hill Gold CEO, Dr Kris Butera, said: "The continued delineation of high grade mineralisation shows that we are only at the early stages of understanding the true potential of the project. Structures exhibiting high grades are shown to exceed 600m vertical extent, with a number of these apparent at the surface as historic workings, outcropping quartz veins or as significant patches of float."
Procyon Reef
A zone encountered before the Castor Reef in drill hole GHD009, at ~473m, yielded only 2m @ 0.68g/t Au. The intersection is considered a separate reef system, named the Procyon Reef given the intensity of veining, a sulphide-rich wide quartz vein and similar strong alteration. The samples from this zone have been resubmitted for Screen Fire Assay. The presence of this reef in drill hole GHD011 is being assessed.
Encouraging and significant stockwork veining and associated sulphide mineralisation, as well as Hobbs-style monzodiorite bearing sulphide mineralisation, was intersected in hole GHD010 at Hobbs Middle East. Whilst no significant gold assays have yet been received, a 12m zone contained 276ppm Mo (molybdenum) from 340m. The company believes that potential exists for significant mineralisation at Hobbs Middle East and work is underway to secure approval for drill pads that are better sited to test the mineralisation.
No further significant results were received from hole GHD009, however, a number of low grade intersections were associated with alteration similar to that observed in the Castor and White Deer Reef zones. Some of these intersections, where they are believed to represent a significant reef, including the Procyon Reef described above, have been sent for Screen Fire Assays where the chances of larger gold particles being recovered from the assay process is increased (if they are present) - a much more accurate assay method for coarse 'nuggetty' gold.
Arcturus Reef
A review of drilling the Company has undertaken to date has identified number of potential additional reef structures, including in hole GHD004 where 2m @ 1.6g/t Au was returned from 80m. Additionally, 4m @ 1.2g/t from 724m in GHD007 was obtained where significant alteration and a major quartz vein system was intersected, now termed the Arcturus Reef which also appears to have been intersected in holes GHD009 and GHD011. Systematic evaluation and interpretation of known and potential high-grade reefs is ongoing. See current drill hole plan for a very preliminary interpretation of the reef structures based on currently available data and observations - this interpretation is likely to change and become more refined over time.
The exploration plan will continue to focus on both 3DIP targets and high-grade narrow vein targets, with an emphasis on prospects that demonstrate both historical high-grade workings and coincident geophysical and geochemical anomalies. The drill rig has now moved to the recently approved Arcadia drill site and drilling on hole ARC001 has commenced. ARC001 is testing a near surface set of workings (historic high grade gold) and a large chargeability anomaly.
Mount Adrah Hobbs Pipe - Recently Completed Hole Collar Information
--------------------------------------------------------Hole ID East North RL Grid Collar Collar Total (m) (m)(m) Azimuth Incl. Depth(m)--------------------------------------------------------GHD009 583444 6104587 387 MGA94 29* -60 1312.6m Zone 55GHD010 583448 6104593 387 MGA94 120 -55 740.3m Zone 55GHD011 583445 6104592 387 MGA94 41 -55 969.6m Zone 55 --------------------------------------------------------
*Collar Azimuth corrected from previously listed in JORC Table 1 of ASX Release 28th October 2013.
Other than the above table, Sampling Techniques and Data and Reporting of Exploration Results are as presented in Table 1 of ASX Release 28th October 2013.
To view diagrams and charts, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-SOC-769024.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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