Sovereign Gold has potentially made a significant gold discovery in New South Wales at its Mt Adrah Hobbs deposit with initial drill results confirming mineralization at every metre from surface to a depth of 576 metres.
Results at the site, 60km south-east of the city of Wagga Wagga, underpin a conceptual exploration target of up to 4 million ounces of gold, which is potentially a company-making asset.
“These initial assay results are outstanding and have confirmed our concepts and targets; pending the remaining results we believe we have made a new and significant discovery,” says managing director Michael Leu. “We are very excited about the future prospects for this area.”
The first drill hole at Hobbs Pipe 1 confirmed mineralization over a depth of at least 576 metres, extending known mineralization from previous exploration. The initial results continue to underpin Sovereign’s conceptual exploration target for Pipe 1 of 3 to 4 million gold ounces, with drill results within the target grades of 1.13 grams/tonne and 1.4 grams/tonne gold.
Initial results from the first hole of Pipe 1 include 284 metres @ 1.2 grams/tonne gold from 292 metres. This further includes 104 metres @ 1.6 grams/tonne of gold from 292 metres and 50 metres @ 1.9 grams/tonne of gold from 300 metres. Results are still pending for 746 metres of core from the hole. Historical drilling showed 313 metres @ 1.42 grams/tonne of gold from 2 metres, which is currently being verified by the latest drill results.
During drilling, continuous mineralization was observed from surface to a depth of 886 metres.
Last month, Sovereign announced a conceptual exploration target for the overall Mt Adrah Hobbs deposit of 25 to 40 million gold ounces. The deposit sits on the same large-scale tectono structural system as Newcrest Mining’s Cadia Ridgeway gold mine (which hosts 60 million gold equivalent ounces) and Rio Tinto’s Northparkes gold mine (8 million gold equivalent ounces.)
Drilling of the second deep hole was due to start by the end of July and is designed to test the mineralization width of Pipe 1 of the Hobbs deposit. Drilling is expected to take two weeks with assay results to follow.