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Sovereign Gold buys unlisted explorer

13th March 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Sovereign Gold has moved to increase its footprint in New South Wales through the acquisition of unlisted explorer Gossan Hill Gold.

Gossan Hill holds three advanced gold prospects in New South Wales, which Sovereign Gold said on Wednesday, would provide multiple benefits, including an expanded exploration footprint in the state.

Previous exploration has indicated significant resource upside at the Gossan Hill properties, which cover eight exploration licences, in particular at the Hobbs deposit, at the Mt Adrah project.

Sovereign told shareholders that the strategic acquisition of Gossan Hill provided a unique development opportunity for the company to complement its current mix of projects across New South Wales.

“It enhances the company’s geographical footprint, encompassing quality intrusion-related gold system (IRGS) targets, provides significant technical synergies and a Joint Ore Reserves Committee resource with significant resource expansion potential,” MD Michael Leu said.

“Coupled with existing projects, Sovereign is now well positioned as a high-growth gold exploration company with multimillion-ounce resource potential over the medium term.”

Edited by Creamer Media Reporter

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