A longer term objective of Southern Gold's is to extend its tenement holding where there is potential to build its gold resource base. This is achieved through the Cowarna Project. Currently comprising one exploration licence (E25/474) and four exploration licence applications, the project will cover approximately 200 km2 once all tenements are granted.
Located 50 km south-east of the Bulong Project (Figure 1), the Cowarna Project covers banded iron formation (BIF) interpreted to be the equivalent of the Randalls BIF sequence. Silver Lake Resource's (ASX: SLR) Randalls operations (Randalls, Maxwells, and Cock-Eyed Bob mines) located west of the Cowarna Project area (Figure 2) are associated with folded BIFs.
BIFs are important hosts for gold deposits in the Yilgarn due to their chemistry and rheology. Their magnetic properties often allow them to be readily mapped using magnetic based geophysical methods.
The Cowarna area was targeted for acquisition after compilation and review of historical data. This included rock chip samples assaying greater than 1 g/t Au and up to 10 g/t Au. Importantly, these samples were associated with the prospective BIFs in the area (Figure 3).
The Company believes that the Cowarna Project provides considerable scope for further structural targeting of these regionally important BIFs. It is anticipated that the project will provide long term growth potential for Southern Gold, complementing the Cannon Resource mine development and Bulong Project targets.
Figure 1. Southern Gold's WA tenement package. The map shows the proximity of Southern Gold's tenements to holdings of neighbouring companies with market capitalisations greater than $70 million. It also shows the proximity to a number of nearby gold processing facilities (gold mills).
Figure 2. Airborne regional magnetic image and the location of E25/474 and E25/497 (application) with respect to the prospective BIF horizon (white sinuous trace). Neighbouring gold mines and mills also shown.
Figure 3. Location of anomalous rock chip samples in relation to total magnetic intensity (white = high, darker shades = lower magnetic intensity).