Announcement

Glandore Diamond Drilling Confirms Historical Results

29 June 2017

Glandore Diamond Drilling Results Confirm Historical Results

  • Recent diamond drilling program confirms grades intersected in historic drilling
  • Highlight intercept of 18.2m @ 3.7g/t Au from 4.9m including 3m @ 6.8g/t Au from 20.1m in drill hole GLDD002 at Doughnut Jimmy in the higher grade core of the deposit
  • Important technical information gained from diamond core to re-model deposit for resource assessment and future drilling

Glandore Drilling Confirms Historical Tenor

Southern Gold is pleased to provide the following update on drilling results at the Glandore Gold Project, 45km east of Kalgoorlie, WA. Southern Gold is farming into the project, currently held by Aruma Exploration Pty Ltd, and can earn up to 90% of the project after expenditure of $1.2m (see ASX Release 4 April 2016). Southern Gold has completed expenditure of $300,000 during the first year and earnt the right to 50% of the project. Southern Gold is currently in the second expenditure period where another $400,000 increases project ownership to 75%.

Nine diamond drill holes (GLDD001 – 009) for a total of 682.4m were drilled over the Doughnut Jimmy (previously called Supergene) and Lavaeolus (previously called Axial Planar) Prospects (Figure 1). Drilling took place during April 2017 and was conducted by WDA Drilling Services Pty Ltd, a company with the capability of on-lake drilling (Photo 1).

Significant assays are plotted in Table 1 and graphically in Figure 2, using a 0.1g/t Au cut off. All drill holes confirmed the tenor of historical results and in some cases extended the underlying mineralised structures, particularly to the north.

GLDD002 was designed to test a gap in a high-grade pod between historical holes with high grade intercepts (Figures 2 and 3). GLDD002 successfully intersected this high-grade pod and returned 18.2m from 3.7g/t Au from 4.9m including 3m @ 6.84g/t Au from 20.1m and in turn provides confidence in drill targeting this feature.

This high grade zone will now be modelled in detail and a resource estimate completed before committing to infill RC drilling in due course.

The objective at Glandore is to identify and define one or more small scale but relatively high grade resources that could be exploited by open pit mining. In parallel with this the Southern Gold exploration team will be exploring the Glandore tenements for a more substantial deposit in areas that were previously poorly explored such as Lake Consols (Figure 1).

Glandore Overview

The initial drilling program at Glandore was designed with three main goals in mind:

  • To test pre-existing drill intersections so that they could confidently be used in the development of a JORC compliant resource;
  • To generate structural information on the host to mineralisation; and
  • To test the margins of the Doughnut Jimmy prospect to see if extensions could be found.

The holes were planned to be cored from surface and oriented wherever possible to provide the maximum amount of structural information on the quartz veins hosting the mineralisation. This was particularly important for the Doughnut Jimmy prospect where no diamond drilling had previously been undertaken.

The drilling results (Table 1) have confirmed previous intersections at both Doughnut Jimmy and Lavaeolus prospects. The drilling around the margins of the Doughnut Jimmy deposit did not significantly extend the extent of the deposit. This is now believed to be because Doughnut Jimmy is a fault offset block of the Lavaeolus and Eastern Zone mineralisation.

The structural measurements have defined two dominant quartz veining sets. The strongest is aligned parallel with the dominant shear/vein systems running NNW and dipping steeply (80°) to the SW. The secondary set of veins strikes NNE but dips steeply (80°) to the NW. Both these vein systems appear to carry gold mineralisation and can be traced by the historic prospecting/mining in the region (Figure 1). Previous drilling has targeted the NNW set of veins preferentially, leaving any mineralisation associated with the NNE set poorly defined.

The revision of the geological models, together with prospect scale mapping and rock chips sampling, has identified several other areas within the Glandore Project which are being fast tracked to drill testing in the second half of the year.

To read the complete article please download the pdf below:

20170629 Glandore Diamond Drilling Confirms Historical Results.pdf