Southern gold Hits High-Grade Gold at Cannon Underground

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THE DRILL SERGEANT: Southern Gold (ASX: SAU) has encountered very high-grade gold results from a 31 hole Reverse Circulation (RC) drill program undertaken at the company’s Cannon gold mine near Kalgoorlie in Western Australia.

Southern Gold explained the drilling had been undertaken from the open pit access ramp to define and extend high-grade gold zones below the open pit base in support of underground mine design.

Highlights of the recent drilling include:


BSRC276
10m at 18 grams per tonne gold from 63m, including 5m at 31.1g/t gold from 66m


BSRC279
6m at 25.9g/t gold from 44m, including 4m at 34.9g/t gold from 45m


BSRC283
12m at 11.4g/t gold from 53m, including 7m at 17.7g/t gold from 54m


BSRC290
22m at 5.36g/t gold from 44m, including 4m at 9.9g/t gold from 47m


BSRC296
12m at 9g/t gold from 57m, including 8m at 11.1g/t gold from 60m


BSRC301
17m at 7g/t gold from 46m, including 7m at 7.9g/t gold from 51m


BSRC303
13m at 7.5g/t gold from 56m, including 8m at 10.8g/t gold from 60m

In addition to the above, drill hole BSRC290 also identified a new parallel high-grade lens at depth below the main zone with 3m at 15.2g/t gold from 79m downhole.

Southern Gold said several intersections from the Cannon underground delineation drill program highlighted the continuing high-grade Cannon gold ore shoots.

It also showed parallel ore shoots with anomalous grade appear to be developing in the footwall at depth.

The Cannon shear is also, based upon early interpretation of logging, steepening at depth and is possibly located to the east of its current modelled position.

Southern Gold said the recent RC drilling has better defined the extent of the high-grade zones below the Cannon open pit, which it considers, in many cases will result in an extension and upgrade to the block model.

The company has interpreted this as being encouraging for an underground gold mine development, which could result in very high-grade gold being mined on at least three levels with the deposit remaining open at depth.

The Cannon gold deposit is now being re-interpreted and modelled in preparation for a new resource estimation and, ultimately, a more detailed underground mine development proposal.

“These are excellent drill results that go a long way to confirming a potential very high-grade underground operation,” Southern Gold managing director Simon Mitchell said in the company’s announcement to the Australian Securities Exchange.

“The shear structure appears to steepen and broadly speaking the grades appear to be improving with depth.

“There is still much work to be done to extend the deposit at depth with some step out drilling but Cannon remains an excellent deposit that may be improving with depth and we look forward to advancing the mine into its next stage.”

Email: info@southerngold.com.au

Website: www.southerngold.com.au