Announcement

Preliminary test-work results - Gubong Project, South Korea

22 June 2018

Excellent recovery results from preliminary metallurgical test work for the Gubong Gold Project, South Korea

  • Southern Gold joint venture partner Bluebird Merchant Ventures Ltd has completed preliminary metallurgical test work at the Gubong project.
  • The work has indicated excellent gold recovery using vat leach processes with potential for further improvements through gravity recovery.
  • Desk top study results suggest that a low capital and operating cost processing facility may be possible.

Southern Gold – Bluebird Merchant Ventures JV

Southern Gold Ltd (“Southern Gold”) advises that its development partner, London Stock Exchange listed Bluebird Merchant Ventures Ltd (“Bluebird”), has completed its initial metallurgical test work program for the Gubong Gold Project in the Republic of Korea.

Bluebird is currently investing a total of US$1 million in the advancement of the historic Gubong and Kochang Gold Mines principally by defining a development framework to advance the projects on a capital cost of less than US$10 million. See Southern Gold ASX release dated 27 March 2017 for further details.

Bluebird Metallurgical Testwork

Bluebird metallurgical testing carried out on a Gubong oxide gold ore sample obtained from the upper levels of the old workings used a simple process known as vat leaching that yielded recoveries of more than 90%.

The evaluation considered conventional leach, carbon-in-leach (‘CIL’) and carbon-in-pulp (‘CIP’) processes that are considered suitable for this type of gold mineralisation.The preliminary test work indicated the vat leach system would provide equivalent recoveries to the other methods but at a lower capital and operating cost.Vat leaching is a well-known and cost-effective processing route, whereby crushed or uncrushed ore is placed in a series of containments known as vats and irrigated with a solution to recover the desired metal into solution. The process may be highly mechanised, reducing the cost of labour and there is no requirement for milling (reduction of ore in size to a powder) thereby greatly reducing power consumption.


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Preliminary test-work results - Gubong Project, South Korea