Sovereign Gold Company Limited Castor High-grade Drilling Program

Sydney, Australia (ABN Newswire) - Sovereign Gold Company Ltd. (ASX:SOC) announce that the Mt. Adrah Gold Project - Wedge drilling program to commence using diamond hole GHD009 as the mother hole, aiming to more fully assess the high-grade Castor reef structure.

- The wedge hole program is designed to determine the shape, orientation, width and grade of the Castor gold mineralised structure (10m @ 17.7 g/t Au from 506m downhole) intersected during 2013 drilling and announced on 28th October 2013

- The discovery of high-grade reefs at depth on the northeastern side of the Hobbs Pipe may add a significant dimension to the potential project economics at the Mount Adrah Gold Project Diamond drilling will recommence on Monday 19th May 2014.

An array of up to five wedge holes will be drilled from the HQ-size GHD009 from two wedge points approximately 50m and 100m back up-hole from where the Castor structure was first hit.

The daughter holes will be drilled in NQ-size and will be terminated soon after they penetrate the Castor structure. Their main purpose is to deliver a tight cluster of intersections around the initial intersect that can then be used to extrapolate its extent, to correlate it with similar structures in adjoining holes, and to position drill holes to test the extent of the Castor structure on increasingly wide spacings with more confidence: the mineralisation bodies need to be characterised before they can be effectively traced.

It is known that other high-grade and silica vein gold mineralisation occurs in adjoining hole (GHD011, 1.2m @ 58.6 g/t) and indicated in historic workings some 400-500m sub-vertically above the existing drill intersections.

Several additional reefs were identified in three deep holes GHD007, GHD009 and GHD011 in the 2013 drilling.

Gold is present in visible grains in some of these and therefore it is anticipated that the nugget effect will have a significant influence on assays and requiring more sample volume to be taken to get representative grade averages. The high density of holes in the proposed wedge drilling is also intended to establish control over sampling methodology.

High-grade intersection of 10m @ 17.7g/t Au from 506m including 2m @ 59.4g/t Au from 514m were returned in hole GHD009, at the Castor Reef

Managing Director, Julian Malnic said, "If the proposed drilling continues to achieve similar results to those in hand, the addition of high-grade reef style mineralisation to the resource picture at the Mount Adrah Gold Project could add a significant new dimension to the project economics."

To view diagrams, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-SOC-796827.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.


Contact:

Sovereign Gold Company Ltd.
Henry Kinstlinger, Investor Relations
Telephone: +61-2-9251-7177