(MENAFN - ProactiveInvestors - Australia) Sovereign Gold (ASX: SOC) has intersected shallow grades of up to 12.35 grams per tonne (g/t) gold in mineralisation similar to that of the Martins Shaft just 2.7 kilometres to the southeast in New South Wales.
Importantly, the discovery supports the company's target model of several satellite mineralised zones of 50,000 to 100,000 ounces of gold along the mineralised structures in the field, with a global target of hosting 0.5 million to 2 million ounces.
The peak gold intercept was located within a broader 5 metre at 2.72g/t gold interval from 7 metres that included 1 metre at 7.8g/t and 0.5 metres at 12.35g/t gold intervals.
Other results include:
- 12 metres at 1.07g/t gold from 3 metres including 0.6 metre at 4.93g/t gold. This also held 0.72 metres at 129.6g/t silver from 13.6 metres;
- 3 metres at 1.16g/t gold from 39 metres including 1 metre at 1.93g/t gold; and
A fourth hole encountered anomalous gold mineralisation with analysis showing that it had penetrated the outer alteration halo of the main gold mineralisation; indicating the bulk of the gold mineralised system is still potentially preserved.
Sovereign added the find confirmed the closest analogue to this mineralisation is the 32 million ounce Donlin Creek Gold Deposit in Alaska, where mineralisation is structurally controlled along north to northeast-trending extensional fault/fracture zones and best developed where those zones intersect favourable host lithologies such as competent felsic intrusive dykes and greywacke.
This is precisely the setting for the recently discovered gold mineralisation which shares remarkably similar, multiple diagnostic characteristics as Donlin Creek.
This discovery is currently being developed with Jiangsu Geology and Engineering (SUGEC) who are spending 2 million on this tenement to March 2014, as part of a total exploration budget of 21 million.
SUGEC has proposed providing a deep diamond drill rig, able to drill to 500 metres, to comprehensively drill this gold mineralisation along the 730-metre strike and to depth with the goal of reporting JORC resources throughout 2013.