Latest assays from the Hobbs Pipe 1 deposit show a continuous gold intercept from surface to a depth of 886 metres, which supports the conceptual exploration target for Pipe 1 of between 2.25 to 4 million ounces of contained gold.
Managing Director Michael Leu said the drill results further indicate that Pipe 1 is part of a broader substantial new gold system, which Sovereign has estimated to contain an overall gold resource of up to 40 million ounces of gold as part of a broader conceptual exploration target.
“The final drill results further validates our belief that MountAdrah can be a world class deposit,” Mr Leu said.
“Diamond drilling of the second hole – designed to test the width of Pipe 1 – is underway and early results indicate it has contacted mineralisation at approximately 335 metres from surface as predicted.”
Mr Leu added that recent metallurgical testing by ALS Burnie has shown an overall 95% gold recovery in a flotation concentrate validating historical metallurgical work carried out in 1996 that showed gold recoveries of 94 per cent. The 1996 tests established an overall 90% recovery of total gold.
Sovereign Gold will shortly update the market on results from the second drill hole. Mt Adrah Hobbs sits on the same large-scale tectono-structural system as Newcrest Mining’s Cadia Ridgeway gold mine (which hosts 60 million ounces of gold equivalent) and Rio Tinto¹s Northparkes gold mine (8 million ounces of gold equivalent).