Quarterly Activities Report
Sydney, Jan 31, 2014 AEST (ABN Newswire) - Sovereign Gold Company Limited (
ASX:SOC) announce the quarterly operations report dated 31 January 2014 and is for the three months ending 31st December 2013.
Corporate
$4 million funding facility (ASX 16 December 2013)
During the quarter Sovereign secured a funding facility of up to $4 million over the next 2 years.
The funding was provided by New York based fund, Bergen Global Opportunity Fund under a Convertible Securities Agreement (Agreement) managed by Bergen Asset Management, LLC.
$1 million was drawn down in December.
Corporate Advisor Appointment (ASX 27 November 2013)
Sovereign Gold announced the appointment of Simon Bird as Corporate Advisor to the Company to assist the board and executive team as the Company transitions from exploration to development of the Company's IRGS projects at Mount Adrah and Uralla NSW.
Community and Landholder Liaison Program
Sovereign Gold published its Community and Landholder Liaison Program on its website at sovereigngold.com.au/cllp. The site includes detailed maps showing the location of Sovereign Gold's tenements.
Exploration
Gossan Hill Gold Limited
Hobbs Pipe - Mineral Resource Update Additional Information (ASX 27 December 2013)
Sovereign Gold reported an updated Mineral Resource estimate of 770,000 ounces gold, from a total Mineral Resource estimate of 20.5 Mt at 1.1 g/t gold, at various cut-off grades at Hobbs Pipe1.
Bonanza hit of 1.2m @ 58.6 g/t Au confirms multiple high-grade structures at Mount Adrah (ASX 21 November 2013)
- Hole GHD011 intersects a new high-grade gold reef - the White Deer Reef returned 1.2m @ 58.6g/t Au from 624m downhole
- Potential for multiple parallel high-grade gold reefs in the immediate Hobbs Pipe vicinity emerging from interpretation of drilling results and surface mapping
- Hole GHD010 intersects new mineralised system at Hobbs Middle East
White Deer Reef
A second high grade reef system proximal to the Hobbs Pipe deposit was discovered. 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.
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. Approval has been obtained 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 a 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 moved to the Arcadia drill site. ARC001 is testing a near surface set of workings (historic high grade gold) and a large chargeability anomaly.
Drill hole ARC001, testing the combined 3DIP anomaly-surface geochemical-historic workings, encountered a broad zone of highly anomalous to low grade gold mineralisation between about 40m to 270m down hole, with peak results of 26m @ 0.14g/t Au from 176m. The presence of gold will require follow up.
For the full quarterly, including figures and diagrams, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-SOC-780254.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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