Corporate Update

11 December 2017

Corporate Update

  • Results from Cannon Underground Mine technical study and commercial arrangements expected shortly.
  • Assay results from multiple projects in both Australia (Glandore) and South Korea (Weolyu) expected over the coming weeks.
  • Very significant epithermal quartz vein textures from Project Generation programme in South Korea with assays expected in 4-6 weeks.

Update on Timing of Results

Australian gold producer, Southern Gold Ltd, has been progressing multiple projects on a number of fronts.While there have been some operational delays, the coming few weeks will see a series of results from these programmes.A summary of the situation is as follows:

Cannon Underground Study: An engineering and costing study has been completed with very positive results and is currently under external review.An independent contractor has been engaged to critically examine and optimise the proposed development scenario and to refine the operational detail suitable for Board approval for development.On completion of this review the results of the study will be released.

Cannon Underground Commercial Arrangements: discussions are advanced with multiple parties as to the financing and commercial arrangements for the development of the Cannon Underground Mine.These will be concluded in the coming weeks and align with the finalisation of the underground study.

Glandore Drilling: while some delays were experienced with access to the lake area at Glandore which required the replacement of drilling equipment deployed to site, this drilling has been completed and as of last week all assays have now been received.Collation and QA/QC of these results is nearing completion with results to be announced this week.

Weolyu Drilling and Underground Sampling: gold results have been received for this programme but silver results in excess of detection limits require further assaying for high grade silver in 30% of samples.The repeat silver assay results are expected in approximately 10 days and the results of this programme will be released in full shortly after.

Gubong Status: Southern Gold’s development partner, Bluebird Merchant Ventures (BMV) has been making important inroads into the Gubong mine and now has physical access at several points.Underground sampling has commenced and initial results from this programme will be reported by BMV over the next few weeks.

Project Generation, South Korea: significant progress has been made under this initiative with assay results expected in 4-6 weeks.

To read the full announcement please download the pdf below:

SAU_Corporate update