Southern Gold encounters gold beneath Cannon open pit

THE DRILL SERGEANT: Southern Gold (ASX: SAU) has received results of recent drilling to evaluate the potential for extensions to ore zones immediately beneath the company’s producing Cannon gold mine in Western Australia.

The Cannon mine is being managed by Southern Gold’s development partner, Metals X (ASX: MLX).

Ore from the mine is being treated at MLX’s South Kalgoorlie Operations (SKO) Jubilee plant, approximately 35km to the south west.

Southern Gold explained the recent drilling program was designed to test a steep southwest plunge of high-grade gold mineralisation it had interpreted within the resource model and to define an extension to the resource below the current designed open pit.

The holes were also designed to explain an apparent termination of mineralisation beneath the southern end of the current pit design, which had previously been interpreted as due to north plunging ore shoots.

The 10 hole drill program was completed in June with results including:

BSRCD269
5.22 metres at 3.44 grams per tonne gold, including 0.42m at 37.7g/t gold; and

BSRCD273
2.5m at 8.93g/t gold, including 0.27m at 76.4g/t gold.

“Strategically these results are very important,” Southern Gold managing director Simon Mitchell said in the company’s announcement to the Australian Securities Exchange.

“While we have intersected very high-grade across relatively narrow widths, the important implication of this drilling is that mineralisation has been confirmed in a new structural position.

“We have more work to do but are encouraged that the mineralised system continues at depth pointing to a system that is perhaps much larger than previously flagged.”

Email: info@southerngold.com.au

Website: www.southerngold.com.au