Announcement

Major Epithermal Target Defined at Beopseongpo, South Korea

29 May 2019

Extensive mineral system at Beopseongpo defined as major epithermal gold target

  • Recently completed field work includes geo-structural, mineralisation and alteration mapping over 5.7km2 area
  • Five major veined zones identified with width in excess of 20 metres and combined strike length in excess of 2,570 metres
  • Recently located small-scale historical mining below low-grade Au anomalism supports drill target at depth
  • Multiple project characteristics have parallels with many economic gold mines of this type observed globally
  • Drilling to commence at Beopseongpo in the near term with drill rig deployment expected in the coming months

‘Boots on the ground’ fieldwork

Australian gold company Southern Gold Ltd has received a detailed field report from a consultant expert in epithermal Au-Ag systems that outlines the results of a detailed ‘boots-on-the-ground’ field programme at the Beopseongpo Gold Project in South Korea (Figures 1 and 2).The fundamental conclusion of this work is that the Beopseongpo Au Project is a very significant epithermal Au (+Ag) target with multiple well-defined and extensive vein systems that are ready for drill testing.

The recent detailed field work programme has identified five major vein zones with a combined strike extent of 2,570m (although likely to be longer as extensions north and south are under cover) with the vein zones displaying widths in excess of 20 metres and individual veins commonly in excess of 1 metre true width.

The quality of the Beopseongpo Au Project is based on a comparison to others of its type observed globally which typically have the following key features:

  • Well-developed and persistent fault structures that are active over long time periods and displaying evidence of dilation and multiple fluid flow events;
  • A rock sequence that is amenable to the focusing of metal-bearing fluid flow into substantial veined zones over considerable strike lengths;
  • The demonstrable presence of a precious metal bearing fluid source that shows evidence of boiling; and
  • Limited erosion of the system which preserves the main zone of precious metal deposition below the present-day land surface.

Beopseongpo is a highly prospective low-sulphidation epithermal gold-silver vein and vein breccia target with significant scale and with the main zone of gold mineralisation likely preserved at around 100-500 metres below surface.

Southern Gold Managing Director, Mr. Simon Mitchell

“Southern Gold’s technical team, which includes senior advisor Doug Kirwin, is very excited by the prospectivity of the Beopseongpo project. It ticks a lot of the key technical boxes and represents an opportunity to discover a gold system of significant scale. While the surface gold results are relatively low grade this is what we expected from a system at this high level of exposure. If our technical model is correct the main mineralised system is likely 100m below surface and, given the textural and alteration evidence we have uncovered so far, there is a very good chance we will find very high-grade gold mineralisation.

In terms of the company strategy, we are currently in the process of selling our Australian assets and focusing on our very high-quality opportunities in South Korea. An important component of this is the Joint Venture with Bluebird Merchant Ventures on the Kochang and Gubong projects where BMV are the operators. This leaves our Southern Gold technical team to focus on the evolving and very exciting exploration play in south-west South Korea where we have uncovered several projects with epithermal gold-silver mineralisation, in some cases with targets that have never been drilled.Beopseongpo, while a technically driven opportunity, represents one of the better targets in the Southern Gold portfolio.”

To read the complete announcement please download the pdf below:

Major Epithermal Target Defined at Beopseongpo, South Korea