SOC 9.09% 3.0¢ sovereign gold company limited

potential for ?billions? in uralla gold fields

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    Potential for ?billions? in Uralla gold exploration
    26 Jan, 2011 09:12 AM
    EVIDENCE of a new kind of gold system has been discovered in the Rocky River-Uralla region, with a potential gold deposit value of billions of dollars.
    Sovereign Gold Company Limited is drilling at Martin?s Shaft, located on the Wilson?s Creek Estate approximately 8km west of Uralla, to determine the grade and quantity of the gold there.
    ?We?re drilling to get samples of the mineralisations at Martin?s Shaft, to see the grade, width and volume of the ore body,? chief geologist and director of Sovereign Gold, Michael Leu, said.
    ?It?s a long way to get to a mine, there?s quite a few years of drilling: we plan to drill all the known hard rock deposits and then undertake deeper drilling.?
    The geological characteristics of the area west and north-west of Uralla indicate the possible existence of a large Intrusion-Related Gold System (IRGS), extending from the Goldsworth Mine to the Manuka Deposit approximately 10km south.
    ?Until recently - in the early 2000s - the geological community considered them (the gold mines) to be small unrelated things,? Mr Leu said.
    ?However, geological evidence shows that all nine hard rock deposits are linked to a large Intrusion-Related Gold System - and that changes the potential significantly.?
    IRGS was only recognised as a deposit classification in 1999.
    In a report published by Geo-Science Australia, IRGS deposit sizes range from small and disseminated, to larger systems producing up to 140t of gold, with overseas systems such as the Tintina Gold Province of Alaska and Yukon containing more than three million ounces Au.
    At the time of writing, gold prices were AUD1340.44 per ounce, signifying a potential gold deposit value of up to four billion dollars at the Rocky River-Uralla IRGS.
    An exploration team from Sovereign Gold has been researching the IRGS characteristics of the Rocky River-Uralla gold field since 2005.
    The gold was originally trapped four to six kilometres below ground, however three to six kilometres of earth has eroded to expose the host rock.
    Sovereign Gold is systematically drilling hard rock deposits to the west and north-west of Uralla, starting at Martin?s Shaft.
    Spencer Clifford Martin first discovered hard rock deposits at the site in the late 1930s, mining a dyke 7.6 metres wide from which he averaged between two to 11 grams of gold per ton of ore.
    ?With the current drilling, we?re seeing widths of mineralisation similar to, and in some cases wider than that reported by Martin,? Mr Leu said.
    ?Sovereign Gold believes in maintaining high standards and low-impact exploration.
    ?We can?t explore until we enter into access and compensation agreements with the landowners, and Sovereign Gold?s planning to have a community information night at Why Worry Wines.?
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