THE BOURSE WHISPERER: Southern Gold (ASX: SAU) has been informed of positive progress at the company’s Gubong gold project in South Korea.
Southern Gold said it had received notification through its wholly-owned subsidiary, Southern Gold Korea (SGK) from development partner, London Stock Exchange-listed Bluebird Merchant Ventures that it has located historical access points at the Gubong gold project.
The company explained this work has been conducted under the farm-in phase of the Farm-In and Joint Venture Agreement it signed with Bluebird in March.
The location of access points has been made by a combination of referral to historical maps, the use of ground penetrating radar and advice from local community members, some of whom worked at the mine in the 1960s.
Bluebird has advised Southern Gold that in addition to the Decline Shaft, access points have also been located at Korean Main Adit #2, Adit #3 and Adit #4 with early indications showing some effort has been made to close off the mine with rubble or soil fill that will require excavation.
Bluebird does not anticipate this being an impediment to progress.
Southern Gold said that once underground access has been gained, ground conditions will be studied carefully and survey work completed to establish a good baseline for future work.
As this happens that Bluebird team will begin mapping and sampling the dry areas of the mine to establish the extent of remnant ore available either in partially completed development or left behind by previous workers.
“Bluebird is making very good progress at the Gubong gold project…in what has been trying operating conditions with significant rainfall and having to work from old historical references, the Bluebird team have shown great perseverance and been rewarded by locating multiple access points into the mine,” Southern Gold managing director Simon Mitchell said in the company’s announcement to the Australian Securities Exchange.
“I have also been impressed with the professional way they have gone about their business and in particular being careful with retained water management and close engagement of the community.
“Hats off also to our local Southern Gold Korea team who have been instrumental in establishing excellent relations with the county government and local community.
“This sort of work is always critical and will hold us in good stead for the long-term progress of the project.
“Once Bluebird get underground I think it will astound investors and analysts alike as to the scale of what we are dealing with at Gubong and the potential for a significant mining operation will start to become obvious.
“In the longer term we believe Gubong will evolve into a significant company building asset.”