Announcement

High Grade Gold Drilling Results Transfind South - Western Australia

28 June 2018

Exciting shallow high-grade gold intersected in RC drilling at Transfind South, WA

Drilling Results from recent campaigns highlight high grade gold at Transfind South and encouraging potential for the Cowarna Project

Transfind South Gold Project

  • Shallow high grade gold mineralisation successfully intersected south of Transfind open pit. Gold mineralisation intersected in all 13 drillholes.
  • Best intersections: 1m @ 133.7 g/t Au and 2m @ 24.4 g/t Au.
  • Follow-up infill drilling to define a mineral resource in accordance with the JORC code.

Cowarna Gold Project

  • Gold mineralisation intersected in the anticline at Pryde and Logan.
  • Best intersection: 8m @ 1.05 g/t Au at Logan.
  • Potential for deeper mineralisation to be tested with diamond drilling in the second half of 2018 and co-funded under the Exploration Incentive Scheme (EIS).
  • Transfind South Project

    Southern Gold Ltd has an Option to Purchase Agreement for the Transfind South tenements from 2 Kalgoorlie-based prospectors provided 2,000m of drilling has been completed (see ASX Release 18th January 2017). To date a 984m RC drilling program was completed to follow up on high-grade rock chips, high-grade historical drilling, and gold-in-soil anomalism. A second program of approximately 1,000m is currently being planned for the second half of 2018.

    The aim of the first pass drilling was to intersect high-grade gold mineralisation amenable to open-pit mining along strike from the Transfind Pit and to test a 230ppb soil anomaly.

    Southern Gold Managing Director, Mr Simon Mitchell “Nice to see some high grade intercepts out of our first pass drilling at Transfind South. And by high grade I mean in excess of 20g/t gold. Our target here is a deposit with very high grades that will be amenable to trucking some distance to a plant. So far it seems to be shaping up nicely vindicating the potential highlighted by the Kalgoorlie-based prospectors.

    And at Cowarna it is great to hit mineralisation in our very first drill programme. It needs to be remembered that we have more than 20 strike kilometers of prospective BIF unit and we have only started on a small section of it in two locations. There is huge potential here.”

    Transfind South historical work

    Mineralisation at Transfind was discovered in the 1920's. Shallow workings and alluvials from the Dawn of Hope, a prospect contained within Special Lease 36, are recorded to have produced 29,790oz of gold from 445 tons of ore, an average grade of 204.9g/t of gold. Gold mineralisation is hosted by andesitic and dacitic tuffs containing relict fresh pyrite, and by narrow quartz veins. Both styles of gold mineralisation contain free gold, the quartz veins containing angular fragments of coarse free gold and external films of secondary gold. Isolated intersections of mineralised quartz veining were reported to return assay values of over 1,000g/t of gold.

    Between 1975 and 1985 Hampton Gold Mining Areas, Hill Minerals and ACM mapped and sampled the area. In 1986 Hampton Areas Ltd carried out a small scale RAB and RC drilling program which was followed in 1987 by one minor and two major Reverse Circulation and diamond core drilling programs.

    Recently (ASX release 11th May 2017), Overland Resources conducted a program of RC drilling under and around the historic Transfind open pit, immediately north of the Southern Gold program. This program confirmed the continuity of the structures hosting the mineralisation, as well as the potential for repeats of the structures at depth. Targeting of drilling at structural junctions has the potential to intersect thickened zones of high grade mineralisation similar to SAU’s intersections south of the pit.

    To read the complete announcement please download the pdf below:

    High Grade Gold Drilling Results Transfield South WA