Announcement

Kochang Project Update: Near-Mine Mineralisation Potential Estimated

22 November 2018

Highlights

  • 3D modelling completed, highlighting multiple vein system with continuity >900m along strike.
  • Kochang geological potential significant with an Exploration Target Range estimated from vein modelling.
  • Farm in and Joint Venture Agreement commitments to be met during November

Overview

Australian gold company Southern Gold Ltd (“Southern Gold”) advises that its development partner in South Korea, London Stock Exchange listed Bluebird Merchant Ventures Ltd (“BMV”), has completed its funding commitments for the farm-in stage of the Farm-in and Joint Venture Agreement for the Kochang Project.

Bluebird are finalising the report on the feasibility of reopening the historic Kochang Mine, as part of its final requirement to the commencement of the Joint Venture. Once this final condition is met costs will then be shared equally between Southern Gold and Bluebird. The Joint Venture will now work towards the development of both the Gubong and the Kochang Mines with BMV as operators.

Recent channel sampling at Kochang was reported in ASX Release on 24th May 2018 “Kochang underground channel sampling by Bluebird Merchant Ventures Ltd returns significant assay results”. These results formed the basis of the vein modelling and estimation of geological potential.

To read the complete announcement please download the pdf below:

Kochang Project Update: Near-Mine Mineralisation Potential Estimated