ASX Release 28 th May 2012

Transcription

1 ASX Release 28 th May 2012 Sovereign Gold Company Limited ACN Level 2, 131 Macquarie Street Sydney NSW 2000 Tel: Fax: Contact Michael Leu CEO CEO Presentation following Annual General Meeting In accordance with the requirements of Listing Rule 3.1 we submit the attached material being presented to shareholders following the Annual General Meeting being held today at 3pm on Level 2, 131 Macquarie Street, Sydney. mleu@sovereigngold.com.au Latest News Directors / Officers John Dawkins AO Michael Leu Peter Meers Jacob Rebek Qinjing Qiu ASX Symbol: SOC For further information please contact: Henry Kinstlinger Investor Relations Telephone: Sovereign Gold Company is exploring for large Intrusion-Related Gold Systems in New South Wales. Sovereign Gold s project area covers over 2,650 square kilometres. The principal project is located around the township of Uralla, 21km southwest of Armidale, New South Wales, Australia, with superb infrastructure logistics. It is close to major roads, rail, airport, labour source, university, power, and engineering. Available production records indicate that the Rocky River-Uralla Goldfield yielded 5,193 kg (approximately 167,000 ounces) of gold mostly from Tertiary deep leads during the period Qualifying Statements The information in this Report that relates to Exploration Information is based on information compiled by Michael Leu who is a member of the Australian Institute of Geoscientists. Mr Leu is a qualified geologist and is a director of Sovereign Gold Company Limited. Mr Leu has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of exploration Results, Mineral Resources and Ore Resources. Mr Leu consents to the inclusion in this announcement of the Exploration Information in the form and context in which it appears. References to Mines refer to geographical names, and no inference should be made that Sovereign Gold is operating any mines at this stage of its development. Sovereign Gold s exploration objective is to locate the hard rock ore sources.

2 SOVEREIGN GOLD COMPANY LIMITED (ASX: SOC) NEWLY DISCOVERED INTRUSION-RELATED GOLD SYSTEM (IRGS), ROCKY RIVER-URALLA GOLDFIELD, AUSTRALIA. POTENTIAL TARGET IN EXCESS OF 1M OZ GOLD (Au) BASED ON SIMILAR IRGS DEPOSITS WORLDWIDE Visible Gold in Core, Martins Shaft 1

3 Nine Exploration Licences (EL 6483, EL 7491, EL7700, EL7701, EL7770, EL7766, EL7768, EL7769, EL7770,) covering 2,700 square km. -Excellent Logistics for Operating Environment: Located 21km south-west of Armidale, N.S.W. -Superb infrastructure logistics, close to major sealed roads, rail, airport, labour source, University, water, power, engineering, foundries and other key services etc. -Positive landowner relations. -Open access: predominately grazing country for fine wool and cattle. -Low impact, continuous rehabilitation exploration methods. 2

4 WHAT ARE INTRUSION-RELATED GOLD SYSTEMS (IRGS)? IRGS gold derived from magmatic (granitic fluids) associated with specific suite of diagnostic characteristics. IRGS are a newly-defined (1999) deposit classification, hence opportunity overlooked by previous explorers. Many systems overseas typically contain greater than 3 Moz. Blevin, World Expert, 2005, Geoscience Australia. IRGS Host to the some of the largest recently discovered gold systems Donlin Creek Alaska, <30 million ounces of Gold. 3

5 Sovereign s Gold Project has Many Diagnostic Features of an IRGS The presence of weakly reduced to moderately oxidised, intermediate to felsic fractionated I-S type magmatism. Geophysical signature, Intrusive may appear as magnetic lows. A tectonic setting well inboard of a convergent plate boundary. An extensional environment within a thickened-post collisional portion of a convergent plate margin setting. A location in a magmatic province best known for tungsten (W) and/or tin (Sn) deposits Key alteration styles (phyllic and tourmalinisation) Typical metallogenic signature: polymetallic character of Au, As, Sb, and most importantly Bi. Controls on mineralisation include late stage, exsolved felsicaplitic dykes and areas of potential bulk mineable, sheeted veins. 4

6 IRGS Type Area, Tintina Gold Province (TGP), Alaska Yukon Extensive research has defined numerous diagnostic IRGS characteristics in Sovereign Gold s Project - when you find a new IRGS you have a high probability of finding +1Moz gold (Au). TGP 2,000 km long Gold Province, comparable to Eastern Australia Examples, similar to Sovereign Gold s IRGS: DONLIN CREEK: g/t <30Moz FORT KNOX : BREWERY CREEK: DUBLIN GULCH: 1000m x 600m intrusion 0.9g/t 7Moz 10 orebodies in 12km corridor Eagle 2.3Moz, 3 other ore bodies 5

7 Eastern Australia has Potential for Discovery of Further IRGS within the New England Orogen/Tasman Fold Belt 6

8 HIGHLIGHTS of the YEAR Exploration, although early stage, has confirmed Sovereign Gold has discovered a very large IRGS. Never explored in modern times and never drilled prior to Sovereign Gold. Proof of Concept validates potential for a major discovery The Gold mineralisation discovered at Martins Shaft and the Goldsworth Mine is very significant as this style of mineralisation is predicted by Sovereign s IRGS exploration model. Application of the exploration s teams understanding of controls on gold mineralisation in this large system has identified several high priority drilling targets. Potential target model of several satellite mineralised zones of up to 100,000 ounces Au along the mineralised structures within the field, with a global target of hosting >1M oz. 7

9 HIGHLIGHTS Airborne geophysical survey and ground mapping has revealed a system of kilometres of gold channelling conduits that define a very large gold mineralised system that extends at least 11km from north to south and 6.5km from east to west. Multiple walk-up, near-surface drill ready targets. Sovereign has identified more than 15 separate gold lodes and numerous geophysical and geochemical anomalies in a large mineralising system over 60 sq. km. Airborne geophysical survey has identified 36 additional targets for follow-up. Senior Geoscientists from the NSW Geological Survey are collaborating with Sovereign as the new understanding of these gold systems has potential to invigorate gold exploration in the New England Fold Belt. Purchased MAC200 Diamond Drill rig, reduces drilling costs by at least 60% whilst providing increased mobility for multiple target testing. 8

10 HIGHLIGHTS Sovereign Gold is now a leader in exploration for IRGS and has the ability to swiftly identify multiple potential gold lodes and target this mineralisation through cleverly calculated programmes Drilling campaign commenced Saturday 26 May

11 HIGHLIGHTS Martins Shaft: Gold mineralisation in felsic dykes, nearest analogue is the large Donlin Creek IRGS of Alaska. The body of mineralisation is widening with depth and may extend to 500 metres vertically. Similarly the Goldsworth Mine and Frasers Find mineralisation represent gold mineralisation in granite. Nearest analogue Dargues Reef, Major Creek Gold Mine, Braidwood, NSW. A deep drilling project is being planned. 10

12 The Gold mineralisation at Martins Shaft is very significant. Proof of Concept, as this style of mineralisation was predicted from the application of Sovereign s IRGS Model The mineralisation comprises sheeted veins and disseminated gold mineralisation within a felsic dyke and confirms the potential of the large IRGS to host several primary hard rock gold deposits. Diamond Drill Hole SGRDD002: 3.28 g/t gold from metres downhole including g/t gold from metres downhole and g/t gold from 35-37m metres downhole. Shallow, open-pittable mineralisation. Diamond Drill Hole SGRDD004: g/t gold from metres downhole, including g/t gold from metres downhole and g/t gold from metres downhole. 11

13 Martins Shaft: Visible Gold in Core SGRDD002, from 35-36m, 22.5 grams per Tonne Gold (Au), grams per Tonne Silver (Ag), 0.66% Antimony (Sb) Scale Clump of gold on left-hand-side 6mm x 3mm 12

14 Martins Shaft: Microphotograph of the polished thin section from diamond drill hole core shows a composite aggregate containing gold grain (largest grain about 60 µm across), aurostibite (very pale creamy pink) and pale grey stibnite, adjacent to a large stibnite aggregate and hosted in dark grey carbonate. Plane polarised reflected light, field of view 0.5 mm across. Some free milling, gravity recoverable gold present. 13

15 Martins Shaft: Visible Gold in Core SGRDD002, Core from previous photo. Visible gold (1 mm x 1mm, red lines right-hand-side) in sheeted, antimony-quartz-carbonate veins, (around 36.0m; 35-36m 15.2 grams per Tonne Gold (Au) 14

16 Martins Shaft: SGRDD004 From 58-59m, 19.6 grams per Tonne Gold (Au), 67.8 grams per Tonne Silver (Ag), 0.65%/T Antimony (Sb). Vein filling composed of abundant medium to coarse grained carbonate and crudely banded and disseminated medium to coarse grained sulphides. 15

17 Sovereign Gold Purchased MAC200 Diamond Drill Rig Several High Priority Drilling Targets Identified Small footprint environ-friendly Drilling Rig Drilling is the single largest cost in exploration but also the best methods to rapidly add shareholder value. Test drilling has established cost per metre of diamond core will be 30-40% of contracted services. Through being self sufficient Sovereign can substantially reduce cost whilst rapidly testing its multiple drill targets. 16

18 Several High Priority Drilling Targets Identified Frasers Find High gold and silver grades in mineralised structure over 250 metres long Silver up to 1,790 g/t 1.79 kilograms/57.69ounces Gold up to 76.9 g/t (2.47 ounces) Lead up to 5.95% 17

19 Frasers Find, Gold grains in quartz-sulphide ore. Larger gold grain is 180 µm across. Photomicrograph of polished thin section, plane polarised reflected light, field of view 1 mm across. 18

20 Melvaines Mine Martins Shaft Style mineralisation. Gold grades up to grams per tonne associated with sheeted veins in dyke. Walk-up drill target mineralisation exposed at surface. 19

21 Sueys Claim-Hudson/McCrossins Line of Workings Large mineralised structure (fault/shear zone) with multiple shaft and pits that extends north-east for over 600 metres. Mineralisation analogous to the 30 million ounce Donlin Creek Intrusion- Related Gold System (IRGS). Sheeted veins and disseminated mineralisation in felsic dykes, metasediments and volcanics. Mineralised widths up to 65 metres as indicated by shafts and costeans. Recent assays of mineralised dykes and sheeted veins up to 3.67 g/t gold. Felsic dyke, up to 1 metre wide, at Sueys Claim had patchy gold grades up to 2.1 oz/ton according to historical records (Department of Mines New South Wales, Annual Report for 1895, ) Conceptual target for the 600 metre long mineralised structure is bulk open-pittable, around 1 g/t 20

22 Sueys Claim-Hudson/McCrossins Line of Workings Large mineralised structure extends north-east for over 600 metres 21

23 Diggers Shaft Samples of sheeted veins collected from waste piles beside Diggers Shaft assayed up to 2.39 grams per tonne gold, 3.76 ounces per tonne silver and 0.85% lead per tonne. At surface, walk-up drill target mineralisation exposed at surface. 22

24 High Resolution Airborne Geophysical Survey. Tenements showing Surveyed Area with raw, unprocessed data. Survey revealed many Gold occurrences plot on distinct alteration structures that clearly channelled Gold-bearing fluids. 23

25 36 Targets Identified in High Resolution Airborne Magnetic and Radiometric Survey Data Processed through a range of specialist filters to enhance interpretation. 24

26 High Resolution Airborne Magnetic and Radiometric Survey, Known Gold Occurrences, Yellow Triangles, Plot on Major Structures Revealed by Magnetic Images 25

27 36 Targets Identified in High Resolution Airborne Magnetic and Radiometric Survey Arteries of vast gold-bearing fluid plumbing system revealed New targets identified Confirmed: Large gold mineralised system Gold conduits are long, linear, deep tapping structures with potential for gold lodes like Martins Shaft extending several hundred metres vertically. Potential for near surface major gold lodes and mineralised stocks at depth; gold deposits occur over kilometres of the main NE trending magnetic linear. Major areas of gold mineralisation associated with long conduits having channelled gold-bearing fluids. Significant drill targets where major magnetic lineaments intersect. 26

28 36 Targets Identified in High Resolution Airborne Magnetic and Radiometric Survey High resolution data enabled target identification through processing enhancements using a range of specialist filters and software. Peter Gidley, Eureka Geophysics. Identification of conduits for goldbearing magmatic fluids over several square kilometres. 36 targets ranked through a combination of geophysics anomalism, structure, alteration, geology and known gold mineralisation Some targets similar response and setting to Martins Shaft or other gold occurrences. 27

29 Geophysics Reveals Martins Shaft Part of a Much Larger Altered Intrusive Martins Shaft Gold mineralisation hosted in long NW striking dyke (coloured yellow) 8 targets identified based on similar alteration to Martins Shaft mineralisation and structural conduits Radiometric interpretation zones superimposed on the KUT-RGB and geology image. Black lines are faults that potentially channelled gold-bearing fluids. 28

30 Geophysics Reveals Potential Location of Browns Reef Browns Reef is a lost gold mine. Government records state the reef was 3 kilometres long and yielded up to 2.3 ounces per tonne. The estimated location of Browns Reef coincides with a distinct kilometres long north-east. Anomaly 31 may be part of Browns Reef. High Priority Target. 29

31 Sections of Magnetic Linears Showing coinciding anomalous gold in soil, stream and rock chips samples 30

32 Chinese State Owned Enterprise (SUGEC) to contribute $4 million towards IRGS exploration in EL 7768 and EL

33 World Expert Opinion from Dr Philip Blevin I am confident that the mineral occurrences visited form part of an intrusion related gold style mineral system. I think that these deposits represent the "smoking gun" as regards the source of the Au for the Uralla alluvial goldfields. Left to right Dr. Paul Ashley (Adjunct Associate Professor University of New England), Richard Robertson (Honours UNE) and Dr. Phillip Blevin (Senior Geoscientist, Strategic Assessments, Geological Survey of NSW). 32

34 Collaboration with Senior Geoscientists NSW Geological Survey Inspecting Core from Matins Shaft, Left to Right, Dr. Paul Ashley (Adjunct Associate Professor University of New England), Richard Robertson (SOC Site Geologist UNE), Dr. Phillip Blevin (Senior Geoscientist, Strategic Assessments, Geological Survey of NSW). Dr. David Forster, Senior Geologist, Mineral Exploration Assessment, Minerals Systems Group; Dr. Peter Downes, Senior Geologist, Metallic Minerals Isotope studies and age dating of mineralisation and intrusions to better constrain source of gold. A better understanding of Sovereign s IRGS has potential to invigorate gold discoveries in the New England Fold 33 Belt.

35 Repetitions of IRGS in Sovereign Gold s Adjacent Exploration Licences EL7766 contains two historic alluvial and hard rock goldfields. Repetition of geology of the main Rocky River-Uralla Goldfield. Gold (Au) associated with sheeted veins. One assay by Government yielded 4 oz/ton Gold (Au). 34

36 Significant Antimony (Sb) potential in Sovereign Gold s Adjacent Exploration Licences EL7768 Baxters Antimony Mine. Drill intersections of Antimony (Sb) up to 3.5m wide, grades up to 10.1% Antimony (Sb). 35

37 PROJECT SUMMARY, WHY SOVEREIGN GOLD? KEY POINTS Proof of Concept. Newly Discovered, Large Intrusion-Related Gold System (IRGS) Finding a new Large IRGS creates a good probability of finding +1Moz Gold (Au). Many systems overseas typically contain greater than 3 Moz Au. Sovereign has identified more than 15 separate gold lodes and numerous geochemical anomalies in a large mineralising system over 60 sq km. Multiple exploration plays at or near surface 36 new targets identified by high resolution airborne geophysical survey. Rapid success, Martins Shaft, significant Gold discovery. Several potential look-a-like targets. Many walk-up, drill ready targets. 2 nd stage drill program commenced. Excellent logistics. Sovereign is spearheading Eastern Australia s ascent into what may prove to be a significant IRGS exploration boom. As results continue to stream in throughout 2012, Sovereign s leading position in this relatively new golden opportunity is not one to underestimate. 36