Activity Update: Recent Drilling at The Mount Adrah Gold Project
Sydney, June 27, 2014 AEST (ABN Newswire) - Sovereign Gold Company Limited (
ASX:SOC) is pleased to provide shareholders with an update on the current activities of Mount Adrah Gold Limited (Mount Adrah).
Recent drilling at the Mount Adrah Gold Project (MAGP), in southern NSW, tested peripheral high-grade gold reefs, both proximal and distal, to the main Hobbs Pipe resource (Figure 1 in link below). The initial program using the Company's own Mac200 scout rig comprised three short holes drilled at the Hobbs SE, Arcadia and Crown Reef prospects.
This was followed by a two-hole wedge drilling program to ascertain the geometry and extent of high-grade gold reef style mineralisation in close proximity to the Hobbs Pipe gold deposit with a Mineral Resource of 770,000 oz of gold at various cut-off grades with Indicated - 440,000 oz from 12.1 Mt at 1.1 g/t gold and Inferred - 330,000 oz from 8.4 Mt at 1.1 g/t.
-----------------------------------------------------------------Prospect Hole ID Easting Northing RL Dip Azimuth Total MGA94 MGA94 (m) (degress) (degress) Depth Zone 55 Zone 55 -----------------------------------------------------------------Hobbs SE MAGD001 584155 6104115 332 90 0 42.5Arcadia MAGD002 583622 6104158 300 60 22.5 66Crown Reef MAGD003 583622 6104678 408 90 0 57Castor Reef GHD009A 583444 6104587 387 60 29.5 524.3Castor Reef GHD009B 583444 6104587 387 60 29.5 522.6-----------------------------------------------------------------
Table 1 (also in link below) - Collar locations and drill hole parameters for exploration holes
Exploration Drilling (MAGD001-3)
Hobbs Southeast (MAGD001)
- Hobbs Southeast prospect is located 800m SE of the Hobbs Pipe deposit
- The prospect is on a rounded knoll with extensive but irregular outcropping monzodiorite lithologically similar to Hobbs Pipe, also carrying some gold values
- A breccia of unaltered monzodiorite and hornfels was intersected, with minor sections of silica and sericite alteration similar to the Hobbs Pipe style
- 1m @ 2.6 g/t Au from 14m was the peak value recorded, corresponding with the most altered section of the core
- Results indicate potential for an underlying auriferous monzodiorite pipe
Arcadia (MAGD002)
- Arcadia prospect is located 400m south of the Hobbs Pipe deposit
- Targeted a sheared quartz vein hosted in hornfels
- 1m @ 14.7 g/t Au from 6m, associated with shear-hosted quartz veins
- Result illustrates additional potential for higher grade peripheral reefs to contribute to resources
Crown Reef (MAGD003)
- Crown Reef prospect is located 100m northeast of the Hobbs Pipe on Mount Adrah
- The prospect is characterised by brecciated quartz reefs in quartz-muscovite schist
- 7m @ 1.0 g/t Au from 21m, in veined and altered hornfels
- 2m @ 1.1 g/t Au from 33m, in hornfels-hosted quartz reefs
- 6m @ 0.9 g/t Au from 43.1m, in hornfels-hosted quartz reefs
- Represents mineralization within the 'waste rock' volume modelled in open cut mining scenarios considered for the upper section of the Hobbs Pipe Resource
--------------------------------------------------Prospect Hole ID Depth Depth Interval Grade from to (m) (g/t Au) (m) (m)--------------------------------------------------Hobbs SE MAGD001 14 15 1 2.6Arcadia MAGD002 6 7 1 14.7Crown Reef MAGD003 21 28 7 1.0Crown Reef MAGD003 33 35 2 1.1Crown Reef MAGD003 43 49 6 0.9--------------------------------------------------
Table 2 (also in link below) - Summary of assay results from Exploration Drilling
Wedge Drilling - Castor and Procyon Reefs
Previous drilling by Mount Adrah intersected three reefs in two zones of high-grade gold mineralisation peripheral to (and north of) the main Hobbs Pipe Resource. Table 3 lists the high-grade intersections and depths for Mount Adrah diamond hole GHD009. The Company recently completed two wedge holes from the parent hole GHD009 wedged from 450m downhole, to determine the orientation and continuity of these reefs.
- Wedge holes successfully intersected three reefs within a downhole distance of 56m; one Procyon Reef and two Castor Reefs
- Strong nugget effect observed, with visible gold in GHD009B at Procyon Reef
- Orientation of the three reefs now determined from drill hole correlation and structural analysis
- New orientation allows for plausible correlation of gold mineralisation in adjacent drill holes
Second half of the core is currently being re-assayed (screen fire), over the visually mineralised intervals, to get a better statistical determination of the likely grade of the reefs.
-------------------------------------------------------------Reef Hole ID Depth Depth Interval Grade from to (m) (g/t Au)-------------------------------------------------------------Procyon GHD009 472 474 2 6.3 GHD009A 472.5 474.5 2 1.5 including 3.2 over 0.5m from 473.1- 473.6m GHD009B 472.7 474.6 1.9 1.0*-------------------------------------------------------------Castor 1 GHD009 506 508 2 28.4 GHD009A 507.5 509.5 2 1.1 including 3.3 over 0.5m from 508.4- 508.9m GHD009B 504 506 2 0.02* GHD009B 510 511 1 0.95-------------------------------------------------------------Castor 2 GHD009 514 516 2 59.4 GHD009A 516 518 2 0.1* GHD009B 512.8 516.1 3.3 2.3 including 4.1 over 0.6m from 515.0- 515.6m--------------------------------------------------------------
Table 3 (also in link below) - Summary of screen fire assay results from wedge drilling - Castor and Procyon Reefs
*The nuggetty nature of gold within these reef systems has proved problematic for sampling. For example, the sample of Procyon Reef from GHD009B (473.4 - 474.1m) that was sent for assay returned a value of 1.96 g/t Au. However the grade is potentially much higher as visible gold was observed in the half core that was retained in the core trays.
To view all figures and all tables, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-SOC-803946.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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