THE BOURSE WHISPERER: Sovereign Gold (ASX: SOC) has identified extension to mineralisation at the company’s Mt Adrah Hobbs gold deposit, located 60 kilometres south-east of Wagga Wagga in New South Wales.
AS part of the company’s ongoing drilling program at Mt Adrah, drilling at Pipe 1 is currently at 770 metres depth.
Sovereign Gold has claimed a strong sulphide-sericite sulphide mineralisation – an indicator of gold mineralisation – has been observed throughout the entirety of the hole from surface.
Drill core has been sent for assaying and a turnaround time of approximately two weeks is anticipated.
Sovereign Gold indicated that previous drilling it has conducted demonstrated the grade of the gold increases with depth.
Sovereign intends to drill this initial hole of its exploration program to more than 1,000m to test the deeper extension of previously identified gold mineralisation.
“Drilling so far has clearly vindicated our theory that this pipe-like intrusion extends to, and is mineralised, at depth,” Sovereign Gold managing director Michael Leu said in the company’s announcement to the Australian Securities Exchange.
“As is typical of other world-class deposits in this region (Cadia, Northparkes) Mt Hobbs Pipe 1 is likely part of a much larger mineralised intrusion-related gold system.
“We are very excited about the findings to date and look forward to the initial set of assay results due in a couple of weeks.”
The Mt Adrah Hobbs deposit also sits on the same geological structure as Newcrest Mining’s (ASX: NCM) Cadia Ridgeway gold mine, which hosts 60 million ounces gold equivalent, and Rio Tinto’s (ASX: RIO) eight million ounces gold equivalent Endeavour gold mine.