Sovereign Gold claims new Mt Adrah gold discovery
THE DRILL SERGEANT: Sovereign Gold (ASX: SOC) has claimed discovery of a high-grade gold mineralisation system at the company’s Mt Adrah Hobbs gold project, near Wagga Wagga in New South Wales.
The company has received initial assay results from drill hole GHD009, which it has interpreted to have confirmed the discovery of the system at the Castor prospect.
The Castor prospect is the first to be drilled outside of the main Hobbs Pipe 1 deposit.
Results received so far include:
– 10 metres at 17.7 grams per tonne gold from 506 metres, including 2m at 28.4g/t gold from 506m and 2m at 59.4g/t gold from 514m.
Drill hole GHD009 was completed to a depth of 1312.6m and the company is now waiting to receive results for the remainder of the hole.
According to Dr Kris Butera, chief executive of Sovereign Gold’s 87 per cent-owned subsidiary company Gossan Hill Gold, the geology of hole GHD009, with the intensity of alteration and quartz veining in the metasediment, can be interpreted to show potential for nearby mineralised gold zones.
“These exceptional initial drilling results have demonstrated increased scope for the delineation of significant gold mineralisation outside of Hobbs Pipe 1 deposit and enhanced confidence that the project may host multiple gold systems,” Dr Butera said in Sovereign Gold’s announcement to the Australian Securities Exchange.
“Going forward, the ongoing drilling program will continue to investigate further gold systems close to the main pipe and we will continue to upgrade the Hobbs Pipe 1 JORC-compliant resource.
“These combined efforts will see the scale and value of the project grow rapidly over the next six months in line with plans to become a profitable mid-tier gold developer in the medium term.”
Sovereign Gold has commenced drilling hole GHD010 in order to test a near surface anomaly of the Hobbs Middle East prospect.
The company explained the Hobbs Middle East Prospect lies some 400m to south east of Hobbs Pipe 1, and bears similarities with the main pipe.
Hobbs Pipe 1 currently has a JORC-compliant inferred resource of 16.36 million tonnes at 1.23 grams per tonne gold for 650,000 ounces of contained gold (using a 0.75g/t gold cut-off).