Announcement

Quarterly Activities Report - September 2018

31 October 2018

Highlights

Western Australia

  • Northern Star ‘Right to Mine’ agreement for the Cannon underground project yet to be resolved between the parties, however an update is expected in the coming months.
  • 5 new tenements granted 100% to Southern Gold during the quarter:
  • Jeolla Project Generation identified seven of the fifteen assessed targets as significantly prospective.Gyeongsang Project Generation similarly identified several targets as highly prospective.
  • Gubong JV finalised with report on feasibility completed and pre-development works to commence to deliver final feasibility at start of Q4 FY19. Establishment of Gubong Gold Project and appointment of Joseph Lee as CEO and Graeme Fulton as General Manager.
  • Gubong preliminary metallurgical test work indicates excellent recovery using low capital cost processing methods.Pre-development activities to increase over the coming months.
  • Kochang farm-in phase approaching expenditure target in the next quarter with report on feasibility due in November.
  • At Transfind South, a 1,000m infill and extensional drilling program is being prepared to follow up on the previous quarters highly anomalous results.
  • Glandore JV expenditure approaching 90% earn in phase.

South Korea

  • Southern Gold’s Project Generation strategy aiming to capitalise on numerous opportunities presented by prospective epithermal targets being identified across southern South Korea.
  • Beopseongpo (Beopseongpo 29 & 30) – Large >3km strike length gold-silver epithermal target with rock chip sampling of outcropping vein and float material returning grades up to 21 g/t gold & 19 g/t silver (float) and 3.0 g/t & 1g/t silver (outcrop).
  • Deokon (Jeonju 70 & 80) – First pass mapping and sampling confirmed high grade mineralisation, grades up to: 13.3 g/t Au & 2,130 g/t Ag (mullock); 9.23 g/t Au & 1,080 g/t Ag (mullock); and, 4.0 g/t Au & 681 g/t Ag, with underground channel results released in October confirming similar tenor.
  • Neungju (Neugju 33)– Gold-silver epithermal prospect with multiple vein corridors returning grades up to 20.3 g/t gold & 13 g/t silver.

To read the full announcement please down load the pdf below:

Quarterly Activities Report - 30 September 2018