Sovereign Gold encounters higher grade zone at Hobbs Pipe 1

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THE DRILL SERGEANT: Sovereign Gold (ASX: SOC) has reported continued positive results from an exploration program currently underway at Hobbs Pipe 1, situated within the company’s  Mt Adrah Hobbs gold project in New South Wales.

The company has taken much encouragement form the results achieved from high-grade gold mineralisation intersected in drill hole GHD006.

Results from this hole include:

–    178 metres at 2 grams per tonne gold from 400 metres, within a broader zone of 826 metres at 1.3 grams per tonne gold from surface, also including 408 metres at 1.6 grams per tonne gold from 400 metres.

 

Typical high-grade core from hole GHD006 – this zone averaging approx. 2.5g/t gold. Source: Company announcement

 

“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,” Gossan Hill Gold Limited chief executive officer Dr Kris Butera said in the Sovereign Gold ASX announcement.
 
“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.”

Sovereign Gold acquired an 87 per cent interest in private company Gossan Hill Gold Limited in early 2013.

Other recent drilling has included drill hole GHD007, which Sovereign Gold said had been designed to target the NE edge of Hobbs Pipe 1 near the surface, and then continue on to test the geology beneath historical anomalous hornfels metasediment hosted mineralisation.

According to the company the hole left Hobbs 1 pipe and entered into an altered and skarnified zone of hornfels characterised by semi-continuous zones of stockwork quartz veining.

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 was drilled to test the width of Hobbs Pipe 1 along strike, which indicated consistent mineralisation.

GHD008 is currently at a depth of approx. 500m and has continuously been in altered and mineralised monzodiorite.

Sovereign Gold explained this hole was designed to test the western edge of the pipe at depth, and to follow up on a broad higher-grade gold zone intersected previously in hole GHD006.