(MENAFN - ProactiveInvestors - Australia) Sovereign Gold Company (ASX: SOC) has been granted an exploration licence covering the Swamp Oak Goldfield in New South Wales that hosts 30 mines and prospects, including the Highland Mary Mine that averaged 100 grams per tonne (g/t) gold.
The Swamp Oak Goldfield is situated around the village of Weabonga about 45 kilometres east-southeast of Tamworth, and until recently, post 2006, received little exploration.
The granted ELA 4645 encompasses all of the historic licence EL6620 in addition to some 288 square kilometres of additional ground.
Historical reports show that the Highland Mary Mine shut down in 1916, with ore grading at 3 ounces per tonne at a depth of 110 metres, having produced 171 kilograms of gold from about 1,700 tonnes of ore at an average grade of 100g/t.
At the mine gold is hosted by quartz veins in sub-vertical fractures that cross-cut and post-date the cleavage in the host sediments.
High grades occurred in steeply dipping shoots up to 10 metres long and 100 metres deep
Meanwhile, sampling of mullock dumps at the Rainbow workings at Weabonga returned two bonanza grade gold results of 50g/t and 32g/t gold.
Reverse-fault-associated quartz-pyrite-filled extension vein systems linked with gold concentration at the Wattle Gully Mine in Victoria, which has produced 12,900 kilograms of gold at 10.5g/t, are very similar to reverse fault-associated pyrite-quartz filled extension veins in the Highland Mary Mine and Rainbow Prospect.
Gold grades at Highland Mary Mine and Rainbow Prospect are likely to be comparable to those at the Wattle Gully Mine.
Significant past exploration has defined drill target areas.
Sovereign Gold's exploration program will focus on drilling and structural mapping of the geophysical and geochemical targets identified by previous exploration work.