Sovereign Gold Company Limited Stock Market Press Releases and Company Profile
Activity Update: Recent Drilling at The Mount Adrah Gold Project
Activity Update: Recent Drilling at The Mount Adrah Gold Project

Sydney, June 27, 2014 AEST (ABN Newswire) - Sovereign Gold Company Limited (googlechartASX: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 Ltd (ASX:SOC)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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Contact

Sovereign Gold Co Ltd
T: +61-2-9251-7177
F: +61-2-9251-7500
E: corporate@sovereigngold.com.au
WWW: www.sovereigngold.com.au



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