Sovereign Gold Company Limited (ASX:SOC) Mt Adrah New High Grade Gold Discovery at Castor Prospect

Sydney, Australia (ABN Newswire) - Sovereign Gold Company Ltd. (ASX:SOC), through subsidiary Gossan Hill Gold Limited, is pleased to announce the discovery of high grade gold mineralisation outside of the Hobbs 1 Pipe, providing further encouragement that the Mt Adrah district will potentially host gold mineralisation additional to the current resource.

Drill hole GHD009 included an intercept of 10m @ 17.7g/t Au from 506m from a zone of narrow quartz veins, intense sulphide veining and alteration within skarn-altered rocks adjacent to the Hobbs Pipe 1 (true width not known).

This intercept included 2m @ 28.4g/t Au from 506m and 2m @ 59.4g/t Au from 514m.

Drill hole GHD009 was completed at a depth of 1,312.6m. The drill hole exited Hobbs Pipe 1 near surface and entered a substantial alteration zone, progressing through garnet-pyroxene skarn (hosting the newly discovered mineralisation) and then into sericite-chlorite-quartz-sulphide (pyrite-arsenopyrite-pyrrhotitechalcopyrite) altered metasediment until end of hole.

The intensity of alteration and quartz veining in the metasediments is interpreted to exhibit significant potential for proximal mineralised intrusive pipes or stockwork quartz vein gold zones. These will be targeted by follow-up drilling from drill pads closer to the targets once regulatory approvals are obtained (Figure 6 in link below).

Gossan Hill Gold CEO, Dr Kris Butera, said: "This is the first confirmation of gold mineralisation outside of the Hobbs Pipe 1 deposit, both in holes GHD009 and GHD007. The presence of high-grade gold mineralisation adds a significant new perspective on how we view the mineralised systems."

Assays are pending for the remainder of GHD009, both above and below the high-grade zone.

Drill hole GHD007, also drilled through skarn alteration, yielded broad low-grade zones of gold mineralisation including 2m @ 2.7g/t Au from 548m, 62m @ 0.3g/t Au from 214m, 16m @ 0.6g/t Au from 724m. The hole ended in 2.1m @ 0.49g/t Au from 922m. These results highlight strong potential for a proximal gold system outside of the Hobbs Pipe 1 that will be targeted by future drilling. Near the surface, the hole intersected 144m @ 1.3g/t Au related to the Hobbs Pipe.

Drill hole GHD008, drilled within the pipe, intersected 483m @ 1.2g/t Au from 6m, including higher grade near surface zones of 56m @ 1.7g/t Au from 6m and 128m @ 1.5g/t Au from 6m.

Drill Hole GHD010 has commenced with the intention of testing a near surface chargeability anomaly similar in nature to and along strike from Hobbs Pipe 1. Hobbs Middle East Prospect lies to the ESE of Hobbs Pipe 1, approximately half way to the Hobbs SE Prospect. The anomaly dips slightly to the north, similar to the Hobbs 1 pipe.

To view diagrams, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-SOC-763697.pdf

About Sovereign Gold Company Limited:

Sovereign Gold Company Ltd. (ASX:SOC) is an Australian-based gold exploration and development company that holds a highly prospective tenement package, for Intrusion-Related Gold Systems (IRGS), in New South Wales, Australia. Sovereign Gold holds 11 Exploration Licences covering over 3,240km2 near Armidale in NSW, including the historic Rocky River-Uralla Goldfields. Sovereign Gold's aggressive exploration program in several of these licence areas is funded via a joint venture (at the tenement level) with Jiangsu Geology & Engineering Co Ltd (SUGEC), a major Chinese State-owned geology enterprise. The other area of focus is the Mt. Adrah Project, approximately 50km southeast of the regional NSW centre of Wagga Wagga and 23km northwest of the historic mining district of Adelong, via an 87% interest in unlisted Gossan Hill Gold Limited. This area contains the recently discovered, world-class, Hobbs IRGS deposit which is currently under evaluation.

Source:

Sovereign Gold Company Ltd.

Contact:

Sovereign Gold Company Ltd.
T: +61-2-9251-7177
F: +61-2-9251-7500
WWW: www.sovereigngold.com.au