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Southern Gold Confirms Major Epithermal System at Beopseongpo

THE DRILL SERGEANT: Southern Gold (ASX: SAU) received results from the first pass scout drilling program undertaken at the Lotus North and Hand of Faith prospects at the company’s Beopseongpo project in South Korea.

Southern Gold said the drilling had confirmed major epithermal system at Beopseongpo with best results achieved at the Hand of Faith prospect, including:

BPDD005
1 metre at 1.48 grams per tonne gold from 9.4m in hole (True width);

BPDD006
0.96m at 5.7g/t gold from 36.45m in hole (Est. 0.67m True width); and

BPDD007
1.05m at 1.17g/t gold from 46.68m in hole (True width).

The company said it was encouraged by these results as they come from a very small strike section of veining (<100m strike extent of one vein system) drilled to date, which equates to less than five percent of the total outcrop, subcrop and float train-inferred strike of vein systems mapped at Beopseongpo project area.

Southern Gold noted that the quartz vein textures intersected were typical of the upper-most levels of Low Sulfidation vein systems, less than 50 metres below the palaeowater table, which it has interpreted to mean the main potential for high-grade precious metal mineralisation is preserved and interpreted to be between one hundred and five hundred metres below the paleo-water table, which has yet to be drilled.

Now that the veins have been intersected, Southern Gold suggests they can easily be targeted down dip in the next program at Hand of Faith.

“We are pleased to have successfully executed the maiden drill program at Beopseongpo and confirm the large vein widths at Hand of Faith,” Southern Gold managing director Simon Mitchell said in the company’s announcement to the Australian Securities Exchange.

“The results and vein textures are typical of high level low-sulfidation systems and we intend to target these at depth where high-grade mineralisation is much more likely in a second phase program next year.

“Beopseongpo has all the right technical characteristics of a large-scale epithermal system and will require several drill programs to fully test the multiple targets in the extensively veined area.”

 

Email: info@southerngold.com.au

Web: www.southerngold.com.au

 

THE DAILY ROADHOUSE

 

Meteoric Resources Encounters Visible Gold in First Novo Astro Hole

THE DRILL SERGEANT: Meteoric Resources (ASX: MEI) was champing at the bit to inform the market of recent developments from recently commenced drilling at the company’s 100 per cent-owned Novo Astro gold project in Brazil.

Red 5 Inks Option Agreement to Purchase Great Western Gold Deposit

THE BOURSE WHISPERER: Red 5 Limited (ASX: RED), by way of the company’s wholly-owned subsidiary, Darlot Mining Company, has entered into an Option Agreement for the right to purchase a 100 per cent interest in Mining Lease M37/54, containing the Great Western gold deposit in Western Australia.

Renascor Resources Releases Siviour DFS Results

THE BOURSE WHISPERER: Renascor Resources (ASX: RNU) delivered results of a Definitive Feasibility Study (DFS) for the company’s 100 per cent-owned Siviour graphite project near the coast of South Australia’s Eyre Peninsula.

Indiana Resources Kicks Off Mali Soil Sampling Program

THE DRILL SERGEANT: Indiana Resources (ASX: IDA) announced the commencement of a comprehensive soil geochemistry program at the company’s Saboussire gold prospect in Western Mali.

Southern Gold Receives Gubong Project ‘Permit to Develop’

THE BOURSE WHISPERER: Southern Gold (ASX: SAU) has been received word from its Joint Venture partner, London-listed Bluebird Merchant Ventures, of confirmation that the Permit to Develop for the Gubong gold mine in South Korea.

 

Southern Gold Receives Gubong Project ‘Permit to Develop’

THE BOURSE WHISPERER: Southern Gold (ASX: SAU) has been received word from its Joint Venture partner, London-listed Bluebird Merchant Ventures, of confirmation that the Permit to Develop for the Gubong gold mine in South Korea.

Southern Gold explained that the mine had previously been announced as having been approved by the Ministry of Trade, Industry and Energy (MOTIE) and has now been endorsed by the Cheongyang Provincial Government.

Further explanation informed us that mine development in South Korea is formally approved through a process run by the provincial government.

Southern Gold said the latest nod marks the next important milestone in the project development approval process and is subject to several conditions largely in relation to physical development requirements regarding safety and environmental management.

Bluebird will now present this approval document to the local County government prior to initiating any site works, for which County government approval is required.

“From a practical point of view, the approval is now in hand and allows for the next stage of development works to begin, subject to presentation of these activities to local community members,” Southern Gold said in its ASX announcement.

Southern Gold and Bluebird each hold a 50 per cent interest in Singaporean company Gubong Project JV Co Ltd, which in turn holds 100 per cent of South Korean company Gubong Project Co Ltd, which holds the Gubong gold development project.

Joint Venture costs are shared 50/50 while Bluebird is responsible for day to day operations.

 

Email: info@southerngold.com.au

Web: www.southerngold.com.au

 

THE DAILY ROADHOUSE

Encounter Resources and Newcrest Drilling at Tanami JV

THE DRILL SERGEANT: Encounter Resources (ASX: ENR) announced the completion of the first phase of RC drilling at Hutch’s Find in the Tanami region of Western Australia that is held in Joint Venture with Newcrest Mining (ASX: NCM).

Red 5 Scores Big Hits Assaying Historical KOTH Core

THE DRILL SERGEANT: Red 5 Limited (ASX: RED) is continuing to produce encouraging results from ongoing assaying of historical diamond drill core from the King of the Hills (KOTH) gold mine, located in the Eastern Goldfields region of Western Australia.

Southern Gold to Commence Drilling at Bonanza Zone

THE DRILL SERGEANT: Southern Gold (ASX: SAU) is set to commence a diamond drilling program on the Bonanza Zone, within the company’s 100 per cent-owned Deokon project in South Korea, having secured land access and regulatory approvals.

St George Mining Encounters More Step-Out Results at Mt Alexander

THE DRILL SERGEANT: St George Mining (ASX: SGQ) released more results from ongoing exploration programs underway at the company’s Mt Alexander project in the north-eastern Goldfields of Western Australia.

 

Southern Gold to Commence Drilling at Bonanza Zone

THE DRILL SERGEANT: Southern Gold (ASX: SAU) is set to commence a diamond drilling program on the Bonanza Zone, within the company’s 100 per cent-owned Deokon project in South Korea, having secured land access and regulatory approvals.

Southern Gold explained the drilling would be a first pass scout program initially to test the Bonanza Zone outcrop and will involve close spaced drilling to determine the currently unknown true width of the mineralised zone and quantify representative gold and silver grade.

The initial program will involve four diamond drill holes, three of which are designed to intersect around 25 metres below the identified outcrop at around 40m apart, with a fourth planned to intersect the structure at depth, approximately 50m below surface.

A second drill pad along strike is also planned to follow with stage 2 holes.

The Bonanza Zone is part of the Golden Surprise Trend that Southern Gold claimed discovery of in July 2019.

At that time the Bonanza Zone returned a peak of 32.4 grams per tonne gold and 1,095g/t silver in outcrop and 78.6g/t gold and 13,000g/t silver in float.

“We are extremely pleased to have secured the required approvals in a timely manner in order to drill the first program into the compelling target at Bonanza Zone this year,” Southern Gold managing director Simon Mitchell said in the company’s announcement to the Australian Securities Exchange.

“Our 100 per cent-owned Deokon project with bonanza grade gold and silver on surface, including visible native silver in hand specimen, is a genuine ‘walk-up drill target’, which has never been tested before.

“Deokon is an exciting project and is just one part of the enormous exploration potential that is unfolding in South Korea.”

Other recent work in South Korea has included a maiden diamond drilling program at the Beopseongpo project, involving four holes for 653.63m at Lotus North and three holes at Hand of Faith for 556m, totalling 1,209.63m of drilling.

Southern Gold anticipates final assays during November at which point the company said it would will summarise the program in more detail.

“At Beopseongpo we are highly encouraged by the intersection of the target structure at the Hand of Faith target, including multiple wide intercepts of epithermal quartz veins,” Mitchell said.

“We now await the assays but are already planning the next stage of drilling there, including at Golden Palm where we have sampled high grade gold on surface.

“Beopseongpo continues to evolve as a high-quality project of exceptional scale.”

 

Email: info@southergold.com.au

Web: www.southerngold.com.au

 

Southern Gold Expands Bluebird Merchant Ventures Agreements

THE BOURSE WHISPERER: Southern Gold (ASX: SAU) announced it has extended its Farm In and Joint Venture arrangement with London listed Bluebird Merchant Ventures (LON: BMV).

Southern Gold said the extension would now include the Kochang project in South Korea with terms for the Kochang gold project being broadly in line with what was previously agreed for the Gubong and Taechang gold projects – being:

A farm-in stage where BMV is to invest US$0.5 million in compiling a high level report on project feasibility targeting capital expenditure of no more than US$10 million, or less than US$5 million each;

The report may or may not provide for several projects to be developed in parallel or potentially as stand-alone operations but Kochang’s relatively high gold and silver grades may enable transport of ore over distance; and

BMV (or one of its associates) is to complete a placement in Southern Gold shares to the value of $0.25 million and at the same price agreed for the other projects, or 38.6 cents per share, by 31 May 2018.

Southern Gold said this takes the potential investment by BMV to US$1.5 million across three projects (Gubong, Taechang and now Kochang) should they take all of them through the farm-in and joint venture process.

It also potentially means a total equity investment in Southern Gold of $0.75 million at the 38.6 cents share price, with $0.25 million having already been completed.

After the completion of the farm-in investment, the share placement and the report on project feasibility, a contributing Joint Venture will be formed with BMV as the operator.

This is expected to occur within approximately 12 months.

“Bluebird is the right group to get underground at Kochang and move this project forward more aggressively,” Southern Gold managing director Simon Mitchell said in the company’s announcement to the Australian Securities Exchange.

“Drilling from the steep hills would be expensive but given there is substantial mine infrastructure in place it isn’t necessary.

“We can get to the vein face and work out the system from underground, and given the high grades seen here historically there may be the potential for a low tonnage, very high-grade development.

“Southern Gold acquired the South Korean projects in July 2016 for around $2 million in scrip.

“It is pleasing to extract in excess of this value inside 18 months on only a portion of our Korean portfolio.

“And there is much more value yet to be released – something that will become quite apparent during the course of 2018.”

 

Email: info@southerngold.com.au

Website: www.southerngold.com.au

Southern Gold Granted Tenure Over New Hampyeong Targets

THE DRILL SERGEANT: Southern Gold (ASX: SAU) has been granted formal tenure over its recent discovery of kilometre-scale surface gold and silver at the company’s wholly-owned Hampyeong project in the southwest of South Korea.

Southern Gold announced new assays, which have returned intercepts of:

Nabi
13.4 grams per tonne gold;

East Main
11.5g/t gold and 8.4g/t gold; and

Saseun Vein Zones
up to 6.8g/t gold.

Southern Gold explained that this target area has never been previously drilled, and these new surface gold samples are from veins that are commonly three to five metres true-width in outcrop within stockwork vein zones up to 20m wide.

The company indicated it has plans for an immediate first phase drilling program at Hampyeong to be carried out over the next two to three months.

“Hampyeong is shaping up to be a very interesting project,” Southern Gold managing director Simon Mitchell said in the company’s announcement to the Australian Securities Exchange.

“It isn’t often you get a chance to test epithermal quartz veins chipping high-grade gold at surface that have never been historically drill tested.

“There is huge potential to discover multiple economic low to high sulphidation epithermal gold-silver projects in South Korea.

“From my point of view, Hampyeong is just the beginning of a major exploration effort in a uniquely prospective geological terraine.”

 

Email: info@southerngold.com.au

Website: www.southerngold.com.au