Sovereign Gold Company Ltd diamond drills lithium project in Canada
Date
9/28/2016 2:34:06 AM
(MENAFN- ProactiveInvestors - Australia) Dempster L61 deposit, channel sampling surface exposures after stripping and washing to expose the lithium-bearing pegmatite, walk-up drill target
Sovereign Gold Company Ltd (ASX:SOC) has commenced diamond drilling at the Crescent Lake lithium project located in Ontario, Canada.
The 500 metre program will target an area hosting four lithium-bearing pegmatites.
Extensive pre-drilling sampling work returned grades of up 1.84% lithium oxide on the pegmatites.
Rocco Tassone, managing director, commented:
'We are excited that the diamond drilling program is underway in parallel with a substantial ramp-up expansion of exploration to the south-west to locate potential significant spodumene mineralisation along a trend extending north-east from Ardiden";s adjoining claims, namely the North Aubry strike extension.”
Crescent Lake lithium project
Sovereign Gold holds an exclusive option to acquire 100% of 28 unpatented mining claims within the Crescent Lake Lithium Prospects in Ontario, Canada.
The 50.7 square kilometres of claims contain outcropping lithium-bearing pegmatites and four lithium-bearing deposits: Dempster L61, Dempster L40, Dempster L28 and Chappais Lake.
The claims are adjacent to Ardiden Ltd";s (ASX:ADV) Seymour Lake Lithium Project and Argonaut Resources NL";s (ASX:ARE) Zigzag claims that contain lithium-bearing pegmatites.
Ardiden's claims host pegmatites up to 26 metres wide grading up to 2.38% lithium.
Ardiden has identified pegmatite exposures over a 5 kilometre strike length that trends towards Sovereign";s claim boundary.
The strike trend indicates there is a high probability of similar significant spodumene mineralisation extending north-east into Sovereign";s claims.
Analysis
The commencement of diamond drilling at Crescent Lake means that Sovereign Gold will be leveraged to upcoming exploration news flow in the short term.
The company is able to produce news flow from its two lithium projects in Canada and the U.S. as well as its Australian gold projects, where new targets were recently identified.
The extensive pre-drilling exploration work complete at Crescent Lake increases the likelihood of lithium mineralisation being intercepted by the drilling.
Furthermore, the company is able to use the results from neighbouring active explorers to identify additional lithium targets.
Shares in Sovereign Gold are trading up 65% year to date, last priced at $0.005.
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