NEW South Wales miner Sovereign Gold has announced a strategic, rapid resource expansion plan for its Mt Adrah Hobbs deposit following confirmation of a multimillion ounce gold target at the project in the state’s south.
Surrounded by some of the world’s most highly profitable porphyry gold mines along the Gilmore Suture, the Mt Adrah Hobbs gold deposit was always a promising prospect. Sovereign’s principle geologists conducted extensive initial
technical reviews of gold concentrations at the site, producing a highly conservative initial exploration target of between 1.5 million ounces of gold and 2.5moz of gold.
Sovereign speculated that further geophysical and geochemical anomalies and several deep tapping pipe-like intrusives found in very close proximity to the area indicated the potential for several million more ounces to be discovered.
With these highly attractive initial findings Sovereign, in conjunction with its Chinese partner Jiangsu Geology and Engineering, announced that it would step up its rapid expansion plan, featuring a fully funded $21 million work program across the next two years.
Compliant with Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves standards, the exploration assignment was assigned to only drill to 120m depth.
At this depth, Sovereign announced inferred resources from Mt Adrah Hobbs of 239,000oz of gold at a 0.5 gram per tonnes gold cut-off. Beyond the 120m cut off, Sovereign reported that simple extrapolation of known mineralisation in the surrounding area indicated the potential for several million more ounces of gold to be established at the site, to a minimum of 315m.
“Our assessment of the Mt Adrah Hobbs deposit has highlighted significant potential to delineate meaningful gold resources,” Sovereign managing director Michael Leu said.
“With exploration in close proximity to Hobbs … Sovereign is well positioned in New South Wales to become a multi-million ounce gold developer in the medium term.”