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Sovereign Gold is an active gold exploration company with its principle assets located in northern NSW, near Armidale. The company recently entered into a JV agreement with a Chinese state owned company which will provide up to A$21m of exploration funding and significant technical capabilities to earn 30% in 10 licences. EL 6483 (excluded from the JV) hosts the Martins Shaft prospect where significant intercepts of gold mineralisation have already been identified.
Sovereign Gold (ASX: SOC) is focused on exploration of the Rocky River-Uralla Goldfield, located in north eastern New South Wales near Armidale. Historical workings in the area produced ~167,000 ounces of gold from high grade deep workings between 1856-1967. Limited modern exploration has since been carried out to determine the source of the alluvial gold.
In 2003, the NSW Geological Survey conducted an airborne geophysical survey that revealed the gold workings in the Rocky River-Uralla Goldfield may potentially be derived from magmatic fluid and as such could represent a much larger Intrusion-Related Gold System (IRGS).
Martins Shaft, located within EL 6483, is the most advanced prospect but is just one of the numerous targets identified. An initial drilling campaign carried out in 2011 intercepted broad widths of shallow gold mineralisation including 22m @ 3.2g/t Au and 18m @ 3.5g/t Au, highlighting the potential of the region.
In November 2012, Sovereign entered into a JV agreement with a Chinese state owned company Jiangsu Geology and Engineering Co. Ltd (SUGEC). Under the terms agreed, SUGEC will contribute A$ 21m of funding to earn a 30% interest in 10 exploration licences surrounding (but excluding) EL 6483 whilst also providing significant technical capabilities.
The current ownership structure of Sovereign Gold is outlined in the chart below and highlights the two major shareholders, the current JV agreements and the 81% interest in ASX listed...
ASX on Hotcooper: http://hotcopper.com.au/asx/SOC