Announcement

Bonanza Zone Drilling Commences

29 October 2019

Diamond drilling to commence at Bonanza Zone, Deokon Project

  • Drilling to commence at the ‘Bonanza Zone’, Deokon Project, targeting beneath the outcrop which returned a peak of 32.4g/t gold and 1,095g/t silver in outcrop and 78.6g/t gold and 13,000g/t silver in float announced on July 17, 2019.

  • Maiden drilling program has been completed at the Beopseongpo Project - assays expected in November

Drilling at Bonanza Zone, Deokon Project

Southern Gold is pleased to announce that the highly anticipated diamond drilling program will commence at the ‘Bonanza Zone’, Deokon Project, now that the company has secured land access and regulatory approvals. This is 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 from Pad 1 for approximately 500m, 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 pad along strike is also planned to follow with stage 2 holes.

The ‘Bonanza Zone’ is part of the Golden Surprise Trend (Figure 1) representing a low sulphidation epithermal target within the broader Deokon project hosting a high-quality Au-Ag fertile epithermal mineralisation system with multiple vein zone targets identified across several square kilometers of project area. The Bonanza Zone returned a peak of 32.4g/t gold and 1,095g/t silver in outcrop and 78.6g/t gold and 13,000g/t silver in float, with the discovery announced on July 17, 2019.

Southern Gold Managing Director, Mr. Simon Mitchell:

“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. Our 100% 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.”

Beopseongpo Drilling Update

The maiden diamond drilling program at Beopseongpo was completed on the 22nd of October. This involved four holes for 653.63m at ‘Lotus North’ and three holes at ‘Hand of Faith’ for 556m, totalling 1,209.63m of drilling. Final assays are expected during November at which point the program will be summarised in more detail. Hole collar co-ordinates and details are shown in Table 1 below.

To read the complete announcement please download the pdf below:

Bonanza Zone Drilling Commences