Posted: 05 Jun 2011 12:00 AM PDT
Sovereign Gold Company (ASX: SOC) has entered into a 50% joint venture in the advanced Ibam Hill gold exploration project in Malaysia through Almusyarakah Mining Minerals SDN BHD (AAM).
A recent site visit by the company established that the Ibam Hill Block B area has potential to host a significant gold deposit.
Sovereign Gold's interests in the JV are held by MAS Gold Pty Ltd, a 100% owned subsidiary of Sovereign Gold. MAS Gold will fund development of the project up to AU$1.5 million, and also provide expertise for the project.
Importantly, the Ibam Hill Project has potential for early gold production of a modest nature from bulk sampling campaigns.
An initial exploration target of 100,000-150,000 ounces gold has been set for the near surface, open pitable resource that averages 1-2 grams gold per tonne.
The company said the Ibam Hill Project has a strong management and advisory team including AAM's founder, Abdul Hakam who has an extensive career in corporate banking and international capital markets.
Sovereign Gold has appointed Tan Sri Ibrahim Menudin and Richard Yap as advisers to the project. Menudin is former group chief executive of Malaysian Mining Corporation, and Yap is director of business development for TA Enterprise Berhad (KUL:TA).
The project is located in the Eastern Gold Belt in the Malaysian state of Pahang in the Bukit Ibam State Forest Reserve, 152 kilometres from Kuala Lumpur.
The geology of Ibam Hill is similar to the Selinsing Gold Deposit in the Central Gold Belt. The Eastern Gold Belt is an under-explored part of the world with excellent exploration potential for gold, tin, iron ore and other commodities.
Sovereign Gold's CEO, Nick Raffan and Chief Geologist, Michael Leu have recently returned from an on-site project evaluation and will oversee the project through participation on the project management committee.
The mineralised area could trend for several hundred metres along a northeast trend and, based on similar gold-bearing systems in the Central Gold Belt of Malaysia, extend to a depth of at least 200 metres – a vertical extent of 54 metres was apparent at the site.Full Feed Generated by Get Full RSS, sponsored by USA Best Price.Full Feed Generated by Get Full RSS, sponsored by USA Best Price.Full Feed Generated by Get Full RSS, sponsored by USA Best Price.Full Feed Generated by Get Full RSS, sponsored by USA Best Price.
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