Mineral Resource Update
Sydney, Dec 12, 2013 AEST (ABN Newswire) - Sovereign Gold Company Limited (Sovereign Gold) (
ASX:SOC) commissioned AMC Consultants Pty Ltd (AMC) to carry out a block model estimation and Mineral Resource estimate report for the Mount Adrah Hobbs Pipe deposit.
The updated Mineral Resource estimate is 923,400 ounces gold, from 26.3 Mt at 1.1 g/t gold at a minimum cutoff grade of 0.4 g/t gold.
-------------------------------------------------------Classification Material COG Tonnage Au Au Au(g/t) (kt) (g/t) (oz)-------------------------------------------------------Indicated Above 200m RL Oxide 0.4 250 1.1 9,000Indicated Above 200m RL Primary 0.5 3,187 1.2 121,400Indicated Below 200m RL Primary 0.5 6,688 1.3 278,500-------------------------------------------------------Total Indicated 10,125 1.3 408,900-------------------------------------------------------Inferred Above 200m RL Oxide 0.5 270 0.7 6,100Inferred Above 200m RL Primary 0.9 2,392 0.9 67,400Inferred Below 200m RL Primary 0.9 13,448 1.0 441,000-------------------------------------------------------Total Inferred 16,110 1.0 514,500-------------------------------------------------------Total 26,235 1.1 923,400-------------------------------------------------------
Notes:
1 The Mineral Resource is reported in accordance with the JORC Code, 2012.
2 All Mineral Resources have been rounded to the nearest 1,000 tonnes.
3 Ounces have been rounded to the nearest 100 oz.
4 COG is defined as cut-off grade.
5 Top cut / top cap of 5 g/t gold has been used to reduce 8 composited samples to 5 g/t gold.
6 200 m RL is approximately 225 m below surface, COG increased for depth.
For the purpose of comparison with the last reported Mineral Resource estimate (ASX 22 August 2013) the following is provided from the current block model estimation at a 0.75 g/t COG:
-------------------------------------------------------Classification Material COG Tonnage Au Au Au(g/t) (kt) (g/t) (oz)-------------------------------------------------------Total Indicated 0.75 10,125 1.3 408,900Total Inferred 0.75 12,630 1.1 444,900-------------------------------------------------------Total 22,755 1.2 853,800-------------------------------------------------------
Notes:
1 The Mineral Resource is reported in accordance with the JORC Code, 2012.
2 All Mineral Resources have been rounded to the nearest 1,000 tonnes.
3 Ounces have been rounded to the nearest 100 oz.
4 COG is defined as cut-off grade.
5 Top cut / top cap of 5 g/t gold has been used to reduce 5 composited samples to 5 g/t gold.
6 200 m RL is approximately 225 m below surface, COG increased for depth.
The Mineral Resource has been reported with a lower cut-off grade from surface to a depth of 225 m below surface. The different cut-off grades take into account possible different mining methods. Further mining concept study work will better define possible mining methods.
It is noted that the average grade of the deeper portion of the system may be amenable to bulk underground mining at 1 to 1.3 g/t gold. The pipe is currently open at depth and further strategic drilling may increase the Mineral Resource.
Dr Kris Butera, CEO of Gossan Hill Gold Limited, said "The increase in the Mineral Resource from holes GHD005 to GHD009 was achieved by drilling 1,870m within the pipe for an all inclusive cost of less than $600,000. This maintains our cost-effective approach of adding value to the project."
Geology
The Mount Adrah Gold Project is a Mesozonal to Epizonal Intrusion-Related Gold System (IRGS) in a dilational zone, located along the Gilmore Suture on the edge of a buried pluton, see Figure 1. The deposit is a structurally controlled micro-breccia within a diorite body that intrudes to the current topographic surface. The mineralisation in Hobbs Pipe is predominantly monzodiorite-hosted disseminated gold in arsenopyrite and pyrite, and also native gold in stockwork quartz veins. A cross section is shown in Figure 3.
Mount Adrah Concept Study
A conceptual mining study for the Mount Adrah Gold Project is to be commenced to provide an indication of the viability and economic potential of the Mount Adrah Gold Project. This work will be constrained to the currently available data, and assist Gossan Hill Gold Limited in prioritising and planning for future exploration and development of the Mt Adrah Gold Project.
The study will investigate the optimal depth and configuration of a conceptual open-pit based on the existing Hobbs Pipe Mineral Resource. The depth of any potential open-pit will include consideration of potential underground mining.
The output of the conceptual mining study will be used as a basis from which to plan resource infill drilling and exploration step out drilling on Hobbs Pipe 1 system, while also continuing to assess the potential for the Hobbs Middle East and Hobbs SE prospects, to add to the overall mine plan.
To view diagrams and charts, please visit:
http://www.abnnewswire.net/companies/en/34476/Sovereign-Gold-Company-Limited
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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