Announcement

Met Testing Results at Kochang, South Korea

06 December 2018

Kochang Project: initial metallurgical test work indicates excellent recovery potential

Highlights

  • High gravity recoveries, up to 80% for gold and 60% for silver, considered excellent for this stage of study.
  • Farm in and Joint Venture Agreement to be formalised with final metallurgical testing and report on feasibility.

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 preliminary metallurgical test work as part of the requirements to deliver a final report on feasibility to conclude the farm-in stage of the Farm-in and Joint Venture Agreement for the Kochang Project.

BMV are finalising the report on the feasibility of reopening the historic Kochang Mine, due imminently, 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 BMV. This initial metallurgical test work forms part of this reporting.

The metallurgical test work, while not concluded, is based upon bulk samples collected from the recent channel sampling at Kochang as was reported in the ASX Release on 24 May 2018 “Kochang underground channel sampling by Bluebird Merchant Ventures Ltd returns significant assay results”. The samples were obtained from within the old workings and across different modelled vein systems also previously reported in ASX release on 22 November 2018 “Kochang Project Update”.

To read the complete announcement please download the pdf below:

Met Testing Results at Kochang, South Korea