Chinese SOE To Invest AU$4M in IRGS Project
Sydney, Mar 28, 2012 AEST (ABN Newswire) - Sovereign Gold Company Limited (
ASX:SOC) has entered into a cooperation and investment agreement with Jiangsu Geology and Engineering Co. Ltd. (SUGEC) of Nanjing, China to contribute AU$4 million toward Intrusion-Related Gold System (IRGS) exploration on EL 7768 and EL 7491 in NSW (SUGEC Gold Tenements).
SUGEC will fund exploration on the SUGEC Gold Tenements in the amount of $2 million over each tenement before 31 March 2014 at which time SUGEC will be entitled to a 30% interest in the respective tenement.
Sovereign Gold is exploring a large IRGS at the Rocky River-Uralla Goldfield in New South Wales.
Whilst Sovereign Gold's primary exploration focus is diamond drilling multiple targets within its 100% owned EL 6483 where Martins Shaft and Frasers Finds and other identified gold-bearing structures are located, SUGEC's participation will enhance Sovereign Gold's understanding of IRGS in NSW and fast track exploration and resource definition.
SUGEC's General Manager, Professor Zhengyou Yu said, "We hope that this cooperation agreement will help to further develop mutual understanding between our two countries. It will assist us in understanding overseas mineral exploration and development, which will promote the development of SUGEC and China's mining industry."
Michael Leu, Sovereign's CEO, welcomed the association with SUGEC, "Through this relationship, Sovereign Gold gains access to a wealth of experience. It brings fresh minds into the study of IRGS and will accelerate our exploration activities."
Recent IRGS discoveries in the Tintina Gold Province in Alaska-Yukon, which is believed to be an analogous province to the New England Fold Belt, have been reported in the order of 52 million ounces.
The recent aeromagnetic survey revealed extensions of the gold channelling structures located in EL 6483 extending into the adjacent EL 7491.
The exploration program with SUGEC will expand the magnetic survey over EL 7491 to locate further potential Martins Shaft-style lodes.
For the full release including diagrams, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-SOC-672909.pdf
About Sovereign Gold Company Limited
Sovereign Gold Co Ltd (ASX:SOC) is an Australian-based specialist gold exploration company. Sovereign Gold has a portfolio of quality tenements located in Eastern Australia where there is known potential for the occurrence of Intrusion-Related Gold Systems (IRGS). Sovereign Gold has a highly prospective tenement package covering the Rocky River-Uralla Goldfield, 21km southwest of Armidale, NSW, Australia. Sovereign owns the recent Mt Adrah Hobbs IRGS discovery south-east of Wagga Wagga, NSW.
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